Toyota to adopt 'EV-first' approach under new boss

Toyota will adopt a “BEV-first” strategy led by its luxury brand Lexus under incoming CEO Koji Sato.

Speaking for the first time since being named the successor to 13-year CEO Akio Toyoda, Sato said the company will accelerate the development of next-generation electric cars, with Lexus launching an all-new EV by 2026.

Read more: Akio Toyoda becomes Toyota chairman; Lexus boss now CEO

He said: “To deliver attractive BEVs to more customers, we must streamline the structure of the car, and – with a BEV-first mindset – we must drastically change the way we do business, from manufacturing to sales and service. Lexus will lead this transformation.”

The Toyota brand launched its first mass-market electric model – the bZ4X SUV – late last year, lagging almost two years behind key rival Volkswagen's ID 4 crossover.

Sato's statement also hints that Lexus could adopt a new sales method such as the ‘agency’ model – in which cars are sold directly to customers, rather than through dealers – championed by younger rivals Genesis and Polestar.

Although electrification will become Toyota’s priority, its cars will be developed according to regional needs, said Sato.

Citing the IMV 0 concept unveiled in Thailand last year – a small pick-up designed with a flexible rear bed to suit various applications, such as logistics and food service – he added: “By prioritising ease of customisation, we are directly addressing the needs of customers who use pick-up trucks in their work.”

This also means the company will continue to offer internal-combustion models. “The energy situation varies around the world,” said Sato.