Toyota, Mazda, and Subaru Challenge Tesla With Combustion Engines

Toyota, Mazda, and Subaru have joined forces for the first time in modern history to test out new internal combustion engines designed to challenge Tesla’s dominance in the market.

According to The Irish Times, the three automotive giants held a joint press conference where they pledged to continue to invest in “fuel-based technology.”

“In an era when the development of battery electric vehicle technology is accelerating, there is a new role we can pursue for the internal combustion engine as well,” Toyota’s chief executive Koji Sato said at the conference. Fuel-based technology, according to Sato, was designed to be used alongside batteries in hybrid vehicles.

Per Hiroki Nakajima, Toyota’s chief technology officer, “Both the batteries for electric vehicles and international combustion engines are important.” Nakajima added that Toyota planned to invest in both technologies and prioritize “whichever would help it hit emission targets.”

Toyota, Mazda, and Subaru’s perceived challenge to Tesla and other electric-first vehicle companies comes in the face of the slowdown in the sales of those electric vehicles. As Tesla continues to invest in things like budget-friendly EVs, Toyota claims that electric vehicle sales will slow down significantly, with only 30% of the vehicles on the road being EVs by 2030.

Toyota CEO Ted Ogawa underlined the company’s commitment to satisfying consumer demand, mainly by electrifying its vehicles at different degrees, especially its gasoline-powered hybrids.

Even in the face of market developments that support increased EV use, Toyota seems steadfast in its pursuit of a hybrid model. To complement its EV and hybrid options in North America, the business is aggressively investing in a $13.9 million battery complex located in North Carolina. Toyota has invested over $17 billion in its U.S. manufacturing activities since 2021, primarily in the development of hybrid vehicles.

Ogawa expressed a readiness to overcome any gaps through credit purchases while acknowledging the regulatory constraints presented by the planned emissions regulations. He emphasized Toyota’s view that making such acquisitions would be a smarter financial move than making an investment in BEVs, which might not be in line with consumer demand.

Even while Toyota is still one of the top automotive manufacturers in the world, its EV sales are far behind, accounting for less than 1% of total sales in 2023.