Is Toyota Finally Catching Up in the EV Race? Here’s What We Know

2 weeks ago

7 9 minutes read

Is Toyota Finally Catching Up in the EV Race? Here’s What We Know (2025)

When you think of electric vehicles (EVs), Toyota probably isn’t the first brand that comes to mind. Tesla? Absolutely. Ford, Hyundai, maybe even BYD or Rivian? Sure. But Toyota? The same automaker that practically pioneered hybrids with the Prius? They’ve seemed surprisingly slow in jumping into the full-EV game.

But now, things are starting to change.

So, is Toyota finally catching up in the EV race? Are they just fashionably late, or are they too far behind to ever lead the pack again? Let’s break it down.

Toyota: The Original Hybrid Hero

Before we dive into Toyota’s recent moves, let’s rewind a bit.

Toyota isn’t exactly new to the world of electrified vehicles. In fact, they kind of set the stage for all of this with the launch of the Toyota Prius back in 1997. The Prius became the face of hybrid cars and dominated the market for years. Toyota sold over 15 million hybrids globally by 2020.

For a while, Toyota seemed to believe hybrids were the answer — and that full battery EVs were either too expensive, too limited in range, or too reliant on immature infrastructure.

But the world kept moving. Tesla started booming. Legacy automakers like Ford and GM began announcing big EV plans. Meanwhile, Toyota looked like it was stuck in neutral.

The EV World Passed Them By

Between 2010 and 2020, Toyota held back from the EV explosion. While other brands were investing billions into EV technology, battery production, and EV-only platforms, Toyota kept putting out hybrids and the occasional plug-in hybrid (like the RAV4 Prime).

Even when they did experiment with full EVs — like the short-lived Toyota RAV4 EV (made in partnership with Tesla, of all companies) — it felt like a toe in the water rather than a cannonball.

Critics started to pile on. Industry experts and environmental groups called Toyota a laggard in the EV space. In 2022, the company even faced protests over its opposition to stricter emissions standards in the U.S. and Europe. Not exactly a good look.

Enter the Toyota bZ4X – A New Beginning?

Fast forward to 2022, and Toyota finally launched the bZ4X — its first all-electric SUV under the new “bZ” (Beyond Zero) lineup. This was supposed to be Toyota’s big EV moment.

But… it didn’t quite go as planned.

Within months of launch, the bZ4X faced a massive recall because the wheels could literally fall off while driving. Not great for a vehicle that’s supposed to represent your EV future. Toyota ended up halting sales temporarily and offering buybacks to some early customers.

Still, it wasn’t all bad news. The bZ4X showed that Toyota was at least taking EVs seriously. And despite the early hiccups, the SUV has been getting decent reviews, with solid range (up to 252 miles), a futuristic design, and a familiar Toyota feel.

Toyota’s $13 Billion Bet on EV Batteries

Here’s where things start to get really interesting.

In 2023, Toyota announced a massive investment of $13 billion into battery development and production. That includes a big expansion of its battery plant in North Carolina, expected to start operations in 2025. The goal? To produce batteries for 1.2 million vehicles per year.

They’re not just betting on traditional lithium-ion either. Toyota is going all-in on solid-state batteries — a potential game-changer in the EV world.

Solid-state batteries promise:

Faster charging times
Longer range
Better safety
Greater durability

Toyota says its next-gen EVs using solid-state batteries could have up to 745 miles of range and charge from 10% to 80% in just 10 minutes. That would blow today’s EV standards out of the water.

They plan to have these on the road as early as 2027.

What’s Changing in 2025?

So, what’s different now? Well, quite a bit.

Toyota is finally going all-in on electric vehicles, with some major announcements that are turning heads in the industry.

1. Solid-State Battery Breakthrough

This is a big one. Toyota says it’s made serious progress on solid-state batteries—the holy grail of EV tech.

Unlike current lithium-ion batteries, solid-state batteries promise faster charging, longer range, and better safety. Toyota claims their new solid-state batteries could charge from 10% to 80% in just 10 minutes, and offer over 600 miles of range. If true, that would be a total game-changer.

Here’s Toyota’s official announcement about their solid-state battery development.

Mass production is still a few years away (likely 2027 or later), but Toyota aims to show off the tech in a demo car as early as 2025.

2. A New EV Platform: The “BEV Factory”

Toyota announced a dedicated EV division called the “BEV Factory.” This is where they’ll develop their next-gen electric vehicles with new platforms, software, and designs that are made for EVs from the ground up—not just electric versions of gas cars.

This new platform is called “Toyota New Global Architecture for BEVs,” or “e-TNGA.” It’s super modular, meaning it can be used for all kinds of cars—from small hatchbacks to big SUVs.

3. Upcoming EV Models

Toyota plans to launch 10 new EV models by 2026. Some of these are already in the works:

bZ4X – Toyota’s first major global EV, already on the road. It’s an SUV that competes with the Tesla Model Y and Hyundai Ioniq 5. It’s been getting decent reviews, though it launched with some early hiccups (like a recall because wheels could fall off—oops).
Lexus RZ – The luxury version of the bZ4X, under Toyota’s premium brand, Lexus.
Compact SUV EV – A smaller, more affordable EV aimed at everyday drivers.
Electric pickup – Toyota showed off a concept electric truck that could rival the Ford F-150 Lightning and Tesla Cybertruck.

They’ve also promised to offer an EV in almost every category by the end of the decade.

10 New EVs by 2026?

In 2023, Toyota announced they’re planning to launch 10 new EV models by 2026. That includes a new 3-row SUV built in the U.S., plus smaller city cars and sedans for international markets.

They’ve even created a new EV-dedicated unit called BEV Factory, which will focus entirely on battery electric vehicles. The plan is to make EVs that are:

Cheaper
Lighter
More efficient to build
And, most importantly, fun to drive

By 2030, Toyota wants to sell 3.5 million EVs annually.

That’s a huge leap from where they are now — but it shows they’re finally taking EVs seriously.

Lexus Leading the Charge

Interestingly, it’s Toyota’s luxury brand, Lexus, that’s been more aggressive about electrification.

Lexus has already released the RZ 450e, an all-electric SUV built on the same platform as the bZ4X. It’s sleeker, sportier, and a bit more premium. While the RZ has a modest range (around 220 miles), it’s getting solid feedback from luxury buyers.

Lexus says it will become a fully electric brand by 2035 — with plans for EVs in every major segment well before then.

Can Toyota Dominate the EV Market?

Now the million-dollar question: Can Toyota catch up and maybe even dominate the EV space?

It’s possible—but it won’t be easy.

Here’s what Toyota needs to do:

Win hearts: EVs aren’t just about range and speed—they’re about fun, tech, and design. Toyota has to build EVs people love, not just tolerate.

Speed things up: The world isn’t waiting. If Toyota wants to be a real EV contender, it needs to roll out more models faster.

Lower prices: The EV market is still pricey. Toyota’s strength has always been affordability and value. If it can bring EVs under $30,000, it’ll attract a massive market.

Build charging networks: Tesla has a huge lead here. Toyota needs to partner up or invest in charging infrastructure to make owning a Toyota EV practical and stress-free.

Is Toyota Still Behind Tesla and BYD?

Short answer: Yeah, kinda—but they’re gaining ground.

1. Tesla’s Still the King

Tesla is still the top dog in the EV world. They have the tech, the infrastructure (hello, Superchargers), and a head start of nearly a decade. Models like the Model 3 and Model Y are dominating global sales.

Tesla also has advanced software—like Autopilot and Full Self-Driving (FSD)—and its own custom chips.

2. BYD Is the Rising Giant

In China, BYD is absolutely crushing it. In fact, they recently overtook Tesla in global EV sales for the first time. They’ve got a full lineup of electric and plug-in hybrid cars, and they’re expanding into Europe, Southeast Asia, and even Latin America.

So yes, Toyota is behind both of them in EV-specific innovation—but don’t count them out just yet.

Toyota vs. Tesla: Can They Really Compete?

This is the big question.

Tesla is miles ahead in the EV game. They’ve got a head start on:

Software and over-the-air updates
Charging infrastructure (Superchargers)
Battery tech
Brand image

Plus, Tesla delivered over 1.8 million vehicles in 2023 alone.

Can Toyota — which sold fewer than 25,000 EVs globally last year — really catch up?

Maybe not overnight. But don’t count them out just yet.

Toyota still sells over 10 million vehicles a year. They have enormous manufacturing power, deep R&D budgets, and a reputation for reliability that few other brands can match. If they commit to EVs the way they committed to hybrids in the 2000s, they could absolutely make a comeback.

Feature	Tesla Model Y	Toyota bZ4X
Range	330 miles	252 miles
Charging Speed	Supercharging (~250kW)	Up to 150kW
Tech & Software	Tesla OS + OTA	Basic infotainment
Price (est.)	~$45,000	~$43,000

What About Hydrogen?

Ah yes, Toyota’s other obsession — hydrogen fuel cell vehicles.

While most automakers gave up on hydrogen, Toyota has doubled down with the Mirai, a sleek sedan that runs on compressed hydrogen and emits only water.

The problem? Hydrogen infrastructure is almost nonexistent outside of a few places like California or Japan. And building it out would take years and billions of dollars.

Still, Toyota believes hydrogen might play a role in long-haul trucking, buses, and industrial uses. It’s not giving up anytime soon — but even they now admit battery EVs are the near-term priority.

EV Skepticism: A Toyota Trait?

It’s worth mentioning that Toyota’s slow embrace of EVs wasn’t just about tech.

The company’s leadership has been publicly skeptical about EVs for years. Former CEO Akio Toyoda (grandson of the founder) often spoke out about the limitations of EVs and pushed for a “multi-pathway” strategy — meaning hybrids, plug-ins, fuel cells, and EVs.

In some ways, he wasn’t wrong. EVs still face challenges with cost, charging access, and materials. But while Toyota preached caution, the rest of the world sprinted ahead.

Now, with Koji Sato taking over as CEO in 2023, Toyota seems to be shifting gears. Sato is reportedly more open to full EVs and is leading this new push into electrification.

Are They Catching Up or Just Playing Catch-Up?

So, here’s the big picture:

Toyota has fallen behind in the EV race. There’s no denying that.
But they’ve finally hit the gas (electric-style) with huge investments, new models, and bold tech.
If they execute well, they could become a major EV player by the end of the decade.

In short? Toyota isn’t leading the EV race — yet. But they’re not out of it either.

And given their history of dominating long-term, don’t be surprised if they come from behind and start setting the pace all over again.

What To Expect in the Next Few Years

Here’s a quick snapshot of what we can expect from Toyota between now and 2030:

More EV Models: Including a new 3-row electric SUV in 2025
Solid-State Batteries: Production prototypes by 2027
U.S. Manufacturing: More EVs built locally, including in North Carolina and Kentucky
Lexus EV Expansion: More premium electric options across global markets
Software and UX Overhaul: Toyota is investing in better in-car software to rival Tesla’s slick systems

They’re also aiming for carbon neutrality at their manufacturing plants by 2035.

Toyota’s EV Timeline: What’s Next?

Year	What’s Coming
2025	U.S.-made 3-row electric SUV
2026	10 total EV models in global markets
2027	Solid-state battery EV prototypes
2030	3.5 million EV sales goal
2035	Carbon-neutral global factories + Lexus goes all-EV

Final Thoughts: Should You Wait for a Toyota EV?

If you’re shopping for an EV today, Toyota’s options are still limited. The bZ4X is okay, but it doesn’t stand out compared to rivals like the Hyundai Ioniq 5, Kia EV6, Ford Mustang Mach-E, or anything from Tesla.

But if you love Toyota’s brand, trust their build quality, and can hold off a few years, the next wave of Toyota EVs looks very promising.

The real test will be what they deliver between 2025 and 2030. That’s when we’ll see if Toyota’s late start was worth the wait — or if they’re just too far behind to matter.

Either way, one thing’s for sure: the EV world is heating up, and Toyota is finally stepping into the arena.

Want to keep an eye on Toyota’s EV plans? Check out their official EV hub: https://www.toyota.com/electrified-vehicles/

Or dive into Lexus’ electrified future here: https://www.lexus.com/electric

2 weeks ago

7 9 minutes read