Toyota Motor Corp. has earmarked 8-trillion yen to boost its electrification efforts until 2030, Reuters reported.

  • Toyota said half of the budget will be used to finance the development of a battery electric vehicle (BEV) line-up in a bid to take advantage of the expanding market for zero-emission cars.
  • The carmaker expects annual BEV sales to hit 3.5 million by the end of the decade, equivalent to around a third of its current sales. This is also less than sales of rival Volkswagen, which expects to have half of its sales from battery-powered cars by then.
  • Toyota Chief Executive Officer Akio Toyoda said the firm is still pushing through with a multi-pronged carbon-reduction strategy that covers hybrid cars and hydrogen-powered units to give more choices to the market.
  • Toyota expects to have a full lineup of 30 BEVs by 2030, with 15 models already available by 2025. It also expects to invest 2 trillion yen in battery production beyond 2030. 

The investment covers a $1.29-billion battery plant in North Carolina which will start production in 2025. TM is up 3.65% premarket, while VGAWY closed up 0.10%.