By Tadashi Isozumi / Yomiuri Shimbun Senior Writer
Toyota Motor Corp. will not stop the development of electric vehicles even though the company decided to stop developing the LF-ZC, which was to be a next-generation Lexus EV model, said Executive Vice President and Chief Technology Officer Hiroki Nakajima.
"We are proceeding with the development of another model, using the technologies cultivated (through the LF-ZC development process)," Nakajima said as he spoke to reporters at Fuji Speedway in Oyama, Shizuoka Prefecture, last Saturday. "It was because we had the successor model that we were able to decide responsibly to halt (development)," he said.
He said that the company has "absolutely no intention of giving up" on EV development. "The market will likely expand. We must make thorough preparations for that," he said.
The following is the first of two parts excerpted from remarks made by Nakajima to reporters.
Technologies to be used for successor model
Question: What is the future policy regarding EV development?
Hiroki Nakajima: There are various technologies cultivated (through the development of the LF-ZC), such as gigacasting (integral casting of aluminum parts) and the configuration of the electronic platform for a new ADAS (advanced driver assistance system). Development had reached a level where it could be considered complete. Now, development of the next vehicle model utilizing the technology from the car (LF-ZC) is underway, and there was a meeting to make a decision on the model. It was at that meeting that we decided to green-light the successor model. Following the meeting, we decided on the spot to halt development of the LF-ZC. It was because we had the successor model that we were able to decide responsibly to halt (development).
(Toyota) has absolutely no intention of giving up on EVs. As long as energy conditions and customer preferences vary from country to country -- whether for plug-in hybrids or hydrogen-powered vehicles -- we will work actively in all directions. This will not change at all. Honestly, the momentum of EVs, or rather their unit sales figures, has indeed (slowed down) a bit recently. However, in the long run, there is no doubt that EVs are one of the effective means of reducing CO2 (carbon dioxide) emissions. The market will likely expand. We must make thorough preparations for that. We are also continuing to develop new batteries that have not yet been installed in vehicles.
Regarding the successor model (to the discontinued LF-ZC), we are discussing not only the vehicle design but also the sales price and profitability plans.
Question: When will the successor model be released?
Nakajima: That's a secret.
Overseas production to address delivery delays
Question: Currently, Toyota is keeping customers waiting (for delivery). What is the cause?
Nakajima: There are cases where (production) lines stop due to causes such as quality issues or equipment failures, which result in lower production volume and delays (in deliveries). There are also various other factors, such as delays in development causing a domino effect of pushing the schedule back slightly.
The biggest challenge is making customers wait after we've told them we'll sell them (certain products). To be honest, there are areas where we've misjudged the balance between supply and demand. We estimate that if we offer a car of this value at this price, we'll likely sell this many units. However, the result is that sometimes supply can't keep up with demand.
Minivans like the Noah and Voxy are extremely popular. Since we can't seem to balance supply and demand, we've decided to manufacture and deliver vehicles from overseas, specifically (through a channel) in Asia.
We'll respond as quickly as possible if the supply-demand balance is disrupted, but the fact is that physical adjustments -- such as (beefing up) production facilities -- require time, such as six months or longer. The most important thing is, of course, how to accurately assess the balance between supply and demand. The reality is that we cannot do everything perfectly in this regard.
In particular, I believe compact cars are not something people wait to buy. People need them right away. Regarding this, I can only offer my sincere apologies. We are vigorously moving forward with capacity expansion and shifting production to different plants.
(Continued in the second half)
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This article is from The Yomiuri Shimbun. Neither Dow Jones Newswires, MarketWatch, Barron's nor The Wall Street Journal were involved in the creation of this content.
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June 12, 2026 07:36 ET (11:36 GMT)
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