Toyota Motor Corp (NYSE:TM) might be planning to change its strategy for hydrogen fuel cars in favor of electric vehicles.
The company had hyped up its alternative energy fuel cell vehicles with the Toyota Mirai which the company claimed would be powered by hydrogen. In fact, it was thought that the company plans to make a major shift towards hydrogen fuel cell technology in the future. However, a recent report about the giant vehicle manufacturer reveals that it is planning on pushing towards electric technology. The report also adds that the firm wants to mass produce electric vehicles by 2020, in line with the Olympics which will be held in Tokyo in the same year.
The world will be focusing on Japan and Toyota wants to take advantage of this by introducing vehicles that can achieve a mileage of more than 186 miles on a single charge. The plan also echoes the support towards electric vehicles by world governments in a bid to reduce pollution. Toyota’s stance on electric vehicles was different prior to the new claims. The company had stated that electric vehicles are good for shorter journeys only.
Toyota also stated that the main disadvantages of battery-powered vehicles include long charging durations, resource-intensive production and the fact that batteries are expensive to produce. The company had argued in favor of fuel cells because they are cheaper, more environmentally friendly and can achieve more mileage. Toyota also open sourced its fuel cell patents in 2015, perhaps aiming to push fuel cell technology into the mainstream. However, most manufacturers seem to be shifting towards electric technology for their future in the industry.
“I think that if you look out maybe two or three years from now, that I would not be surprised if there is a significant deal with Toyota. My best guess is that it would probably be something significant, maybe on a much higher volume level,” stated Elon Musk in 2014 after Toyota ended the partnership with Tesla Motors Inc (NASDAQ:TSLA).
Toyota stock closed the latest trading session at $190.06.
