The Toyota Motor logo was displayed at the company’s car showroom in Tokyo on February 6, 2019.
Kazuhiro Nogi | AFP | beautiful images
During the Toyota Motors earnings reporting meeting on Friday, executives answered questions about how they intend to compete in the expanding electric vehicle sector and made a decision to overestimate the rating. price of Tesla.
Toyota President Akio Toyoda admitted that Tesla̵7;s valuation of about $ 400 billion is sky-high, exceeding all seven Japanese automakers combined.
He also said that Toyota can learn from Tesla’s success with its investors and business models, including revenue from electric vehicles, regulatory credit, software and renewable energy products. create.
However, the CEO continued to compare Tesla’s business with a restaurant that still promotes its recipes, while Toyota is like a restaurant that already serves a large number of customers.
“I hesitate to say this – the Tesla business, if you want to use analogies, like a kitchen and a chef,” Toyoda said.
“They haven’t created a real business yet in the real world. They’re trying to sell recipes. The chef is saying ‘Our recipes will become the standard of the world in the future.’ hybrid! ‘ At Toyota, we have a real kitchen and a real chef, and are creating dishes.There are customers who are very picky about what they like to eat, sitting in front of us and already eating food. We are. “
Toyoda notes that his company produces and sells a much higher variety and volume of vehicles than Tesla, which equates to 100 million Toyota vehicles on the road owned by individuals, fleets and other customers. The current. Toyota is expected to sell about 7.5 million vehicles in fiscal year 2021 starting April 1, 2020.
Tesla expects to sell 500,000 electric cars by 2020.
Toyoda calls Toyota a “full line of menus,” referring to the company’s combination of internal combustion engines, hybrid, pure battery electric vehicles and fuel cells.
Toyota popularized its hybrid electric vehicle with its Prius line, which began to go on sale in 1997. It also makes a very limited number of battery-powered RAV-4, including the second generation electric RAV-4. This is in collaboration with Tesla.
But Toyota didn’t commit to mass production of battery-powered electric cars until the end of last year. That’s when the company announced a joint venture with one of Tesla’s biggest competitors in the global market, electric vehicle maker BYD in China.
Although Toyota’s profits fell in its most recent quarter, the company has seen sales growth 3% higher than the broader auto industry, which is recovering from a pandemic. sales decrease in China in the first half of the calendar year.
With signs of recovery coming, Toyota also more than doubled its full year forecast. The company currently expected to generate operating profit of 1.3 trillion yen, or about $ 12.6 billion, for the year through March 2021. (Previously, the company expected will make a profit of 500 billion yen.)