A cheap Toyota EV? Not right now, the company says

If you were waiting for a smaller, cheaper electric car, you may have to keep waiting. Toyota has no current plans to launch a cheap EV despite demand building. Although many automakers, including VW, Stellantis, and Kia, have revealed plans to launch low cost EVs under $30,000 (£25,000), Toyota says not so fast.

Toyota’s European product development boss, Andrea Carlucci, told that battery costs make a cheap EV unlikely. When asked why Toyota has no plans to address the market, Carlucci said there’s a “premium attached to electric cars.” He explained that there needs to be a “substantial shift in the cost of batteries” before a cheap Toyota EV can be made at scale.

Carlucci said Toyota “cannot achieve that level at the moment.” He added that the Urban Crossover will be the cheapest EV in the near future. Toyota , saying the concept is a “close to production” design for the new EV coming this year. It will be offered in two battery options. The base model will start at around $40,400 (£32,000).

Carlucci noted a cheap Toyota EV is not out of the question, just not anytime soon. “I didn’t say we don’t need an offer there – I’m just observing where the market is today.” Toyota’s European product development boss said the offer for low cost EVs on the market “is limited.” He suggested automakers are sacrificing range for price.

Carlucci also hinted at an electric Yaris replacement in the future. It’s interesting to see Toyota backing away from smaller, low cost EVs. Toyota is best known for the Prius hybrid, after all. Toyota could miss an opportunity with a brand name built on smaller, more affordable cars. With rivals like VW planning to launch its electric car, starting at around $27,000 (€25,000), Toyota could risk giving up market share as the industry transitions to electric.

The automaker claims to be launching that offer more range and faster charging at a lower cost. But, these are not expected to launch until 2026, at the earliest. By then, Toyota could fall further behind. Toyota (including Lexus) sold vehicles globally last year. Only 95K, or 1% of them, were EVs. In comparison, VW sold last year.

That’s around 9% of its sales. Other rivals, like Hyundai, BMW, Mercedes, and Volvo, are already hitting double digit EV sales. and subscribe to the . Peter Johnson is covering the auto industry’s step by step transformation to electric vehicles. He is an experienced investor, financial writer, and EV enthusiast.

His enthusiasm for electric vehicles, primarily Tesla, is a significant reason he pursued a career in investments. If he isn’t telling you about his latest 10K findings, you can find him enjoying the outdoors or exercising.