1 Toyota’s Challenge Aiming to Popularize BEVs June 7, 2019 Shigeki Terashi Executive Vice President Toyota Motor Corporation 1 Initiatives for vehicle electrification TOYOTA Core technology for the electrification of Toyota vehicles and CASE technology Core technology for electrification 3 FCEVs FC stack High-pressure hydrogen tank BEVs Charger Motor Battery PHEVs Power Control Unit Engine HEVs Automated driving technology Connected technology MaaS 3 Milestones in popularizing electrified vehicles (announced in Dec. 2017) 2030 HEVs･PHEVs ：4.5 million units or more BEVs･FCEVs ：1 million units or more 2050: Zero CO2 challenge HEVs From around 2025: Electrified version available for all vehicle models Engine-powered vehicles From 2020: BEVs actively rolled out 1997: World’s first mass-produced HEV 1990 2000 2010 4 PHEVs 2014: FCEVs 2020 2030 2040 2050 FCEVs BEVs 4 5 Rate of popularization of Toyota’s electrified vehicles 2030 HEVs/PHEVs Approx. 5 years ahead ：4.5 million units or more BEVs/FCEVs ：1 million units or more Current rate of popularization Rate of popularization in 2017 Enginepowered vehicles Electrified vehicles 2017 2018 result result 2025 （as of 2019） 2030 （as of 2017） Sudden surge in electrification at a pace exceeding initial challenge declared in 2017. 5 Main zero-emission vehicles 6 (Including development concept, driving demonstrations, and system provision) Lunar Rover Commercial vehicles Passenger vehicles FCEVs MaaS BEVs Walking area Ultra-compact Compact and midsize 6 Active rollout of BEVs (announced Dec. 2017) 7 In 2020, commence mass production of proprietary BEVs starting in China Increase Toyota and Lexus BEV models worldwide （gradual introduction in Japan, India, U.S., and Europe） 10 BEV models to be available worldwide by the early 2020s 7 From 2020, introduce proprietary BEVs starting in China 8 C-HR/IZOA *World premier at Shanghai Motor Show in April 2019 8 Initiatives Toyota will engage in to popularize BEVs 9 Toyota will take a cooperative stance and work together with many parties to promote initiatives for the construction of new business models. 1) Commence initiatives that aim to create new business models leveraging ultra-compact BEVs, starting in Japan 2) For areas in which the BEV market is already growing, efficiently develop various types of BEVs adapted to market needs at a low cost 3) Develop high-performance batteries, which are the key to improved performance, and prepare a system for supplying batteries to respond to the rapidly expanding needs for electrified vehicles 9 10 1) To popularize BEVs -Deve opment of business model- TOYOEA 11 Major BEV markets and main policies worldwide France: 1.5% 32,200 units ・BEV purchase grant: Max. 820,000 yen Netherlands Canada South Korea UK Other Japan Germany: 1.1% 37,300 units ・ BEV purchase grant: Max. 520,000 yen Norway: 31.2% 46,000 units ・BEV acquisition tax exemption: 1.38 million yen ・Import tax exemption, added-value tax (25%) exemption US: 1.3% 228,600 units ・Max. 800,000 yen tax exemption from federal government ・Also tax exemptions by state 2018 1.21 million units China: 3.3% 707,800 units ・BEV purchase grant: Max. 1 million yen Blue: Number of BEV units sold in each country (According to Toyota Motor Corporation) Red: Domestic BEV share BEV market formation supported by incentives such as tax benefits and grants 11 Toyota’s challenges toward the popularization of BEVs 12 Shift focus from the conventional idea of “manufacturing BEVs and having customers buy them,” to the idea of… Searching for partners openly and extensively, striving toward contributing to a better society and engaging in initiatives to construct new business models 12 13 BEV business models under consideration Peripheral services ・Improved convenience/added value, such as charging services and insurance Leases Development and manufacturing ・Reasonable prices ・High-performance batteries ・Reduce customer burden with RV setting ・Improve battery recovery rate Sales Used vehicle sales Assessment judgment ・Battery remaining value ・Establish used BEV business leveraging battery remaining value Reuse of batteries ・Conduct in supply parts, dealers, and homes ⇒Promote through complete use of batteries, and use of renewable energy Battery recycling ・Recovering scarce resources Promote initiatives for the maximum utilization of added value for BEVs and batteries, from sales to disposal including improving product appeal such as battery performance, in collaboration with partners in various fields 13 14 1) To popularize BEVs: Deploy ultra-compact BEVs in Japan TOYOEA 15 Customer opinions & concerns regarding BEVs ・Unwilling to drive long distances daily; need free mobility for local errands such as shopping or going to hospitals ・Concerned about being able to drive a standard car ・Usually drive alone or with one passenger Local municipalities ・Only need to drive at certain times; car not needed at home ・Prefer similar cruising range as new cars regardless of how many years the car has been used ・Suitable car size for ease of parking ・Safe & free mobility for all in both urban & rural environments Corporations Emergence of new business opportunities for BEVs, including for compact vehicles, short distance use, and corporate use 15 16 Ultra-compact BEVs Concept-i RIDE model Ultra-compact BEVs Commercially planned vehicles Business concept model (Exhibited at Tokyo Motor Show 2017) Expected users ・Younger people and the elderly individuals who prefer smaller vehicles ・Corporations and local municipal bodies that want to respond to environmental issues and make economical choices 16 17 Ultra-compact BEVs Commercially planned vehicles [Planned for release in 2020] Main uses & features Mobility for daily errands such as shopping Business use for short-distance trips or visits Overview Occupancy: 2 people Size (mm): Length Approx. 2,500 Width Approx. 1,300 Height Approx. 1,500 Maximum speed：60 km/h Cruising range on a single charge: Approx. 100 km 17 18 Ultra-compact BEVs Main uses & features i-ROAD Unlikely to topple over, despite being the size of a motorcycle Short-distance mobility • • Serves as the last-mile in urban areas Mobility for tourist outings and resort stays Overview Occupancy: 1 or 2 people Size (mm): Length 2,345 Width 870 Height 1,455 Maximum speed: 60 km/h Cruising range on a single charge: Approx. 50 km 18 19 Walking area BEVs Concept-i WALK Concept model (Exhibited at Tokyo Motor Show 2017) Standing type [Planned for release in 2020] Main uses & features Patrolling and security checks at large facilities such as airports or plants Mobility for luggage transport/handling Overview Size (mm): Length 700 Width 450 Height 1,200 Maximum speed: 2, 4, 6, 10 km/h (variable speed) Cruising range on a single charge: Approx. 14 km Charging time: 2.5 hours (battery is replaceable) 19 20 Walking area BEVs Wheelchair-linked type Seated type [Planned for release in 2021] Main uses & • Mobility when handling luggage • Mobility when walking is difficult features Overview Size (mm): Length 1,180 Width 630 Height 1,090 Maximum speed：2, 4, 6 km/h (variable speed) Cruising range on a single charge: Approx. 10 km Charging time: ２ hours (battery is replaceable) [Planned for release in 2021] • Rental at large facilities and tourism spots for manual wheelchair users Size (mm): Length 540 Width 630 Height 1,090 Maximum speed: 2, 4, 6 km/h (variable speed) Cruising range on a single charge: Approx. 20 km Charging time: 2.5 hours (battery is replaceable) 20 Initiatives for the popularization of ultra-compact BEVs/walking area BEVs 21 Peripheral services Used vehicle sales Leases Development and manufacturing Assessment Sales Battery recycling Reuse of batteries Collaborate with partners in various fields and also engage in dialogue with customers to establish business models while fulfilling various roles (Companies or local governments currently sharing ideas: 40 entities) 21 22 Roles fulfilled by ultra-compact BEVs and walking area Peripheral services Used vehicle sales Leases Development and manufacturing Assessment Sales Battery recycling Reuse of batteries To achieve “Mobility for All,” offer safe and secure mobility that responds in detail to various customer needs 22 2) BEVs for global deployment BEVs for global deployment 24 Aiming for popularization in major markets with strong demand such as China, the U.S., and Europe To encourage various customers with different needs to choose this product: 1）Prepare enough variations (At least 10 models globally from 2020 onward) 2）Implement efficient and smart development to offer vehicles at reasonable prices 24 25 Efficient planning and development Medium sedan Large SUV Medium crossover Collaborative planning Medium minivan Compact Medium SUV Deploy six variations jointly with partners in their respective fields of expertise 25 Dedicated platform collaborative planning ( Side view Change Fixed ): e-TNGA 26 Top view Driver/ passenger position Total Change width Change Fixed Fixed Battery width Fixed Fixed Wheel base Change Fixed Front motor Fixed Rear motor Determine fixed points and points of change, and respond fluidly to multiple variations 電子コンパートメント 一種類 26 Dedicated platform collaborative planning ( PCU Motor Drive shaft FrontWheel drive ): e-TNGA 27 Front motor Rear motor RearWheel drive 4WD BEV unit that enables multiple variations through motor combinations 27 Module development: e-TNGA Front module Center module 28 Rear module Battery Motor Front Rear Short Long Overhang Wheel base Overhang Short Middle Long Short Long Capacity Small Medium Large Output Small Medium Large A B ・ ・ ・ ・ ・ ・ ・ C Deploy multiple variations efficiently 28 29 BEVs for global deployment TOYOTA 30 System for BEV popularization EV C.A. Spirit Corporation (From Oct. 2017) Employ full-time engineers from each company for collaborative development of common architecture Supply basic technology to accelerate product development Toyota ZEV Factory EV Business Planning Dept. (From Oct. 2016) (from Nov. 2018) Promoting BEV product development and related business planning 30 31 Toyota ZEV factory roles Contribute to reducing CO2 emissions through the global popularization of BEVs Vehicle size Achieve “Mobility for All” with the compact mobility lineup BEVs Globally deployed BEVs Passenger vehicles and commercial vehicles Ultracompact FCEVs Pursuing mobility that is loved by people and society Battery development Automated driving Mobility-related business Traveling distance 31 32 Toyota ZEV Factory Main duties • BEV and FCEV business strategy planning Framework Add logos for Hayashi Telempu and Toyota Personnel as of June 2019: Approx. 290 Employees on loan from related companies and organizations to promote BEV product development and related company plans →Product planning, collaboration • BEV development planning →Platform development, production technology etc. • BEV product development to address walking area, ultracompact design, full-scale deployment 32 33 Aiming for the popularization of globally deployed BEVs Peripheral services Development and manufacturing Leases Sales Used vehicle sales Assessment Recycling Reuse of batteries Promote the construction of new business models for globally deployed BEVs 33 34 TOYOTA Core technology for Toyota vehicle electrification and CASE technology Core technology for electrification 35 FCEVs FC stack High-pressure hydrogen tank BEVs Charger Motor Battery PHEVs Power Control Unit Engine HEVs Automated driving technology Connected technology MaaS 35 Toyota vehicle electrification technology cultivated through HEV development Fuel efficiency Prius Company A HEV Toyota vehicles Camry HV (km/L) Company A HEV Small 36 Company B HEV Company A HEV Company B HEV Battery capacity (kWh)/Vehicle weight (t) Large HEVs: Achieve fuel efficiency even with low battery capacity due to highly efficient system Utilize in BEVs 36 37 PHEV system development Prius PHV Approx. 10% Competitor PHEV BEV cruising range per battery capacity (New European Driving Cycle) PHEVs: Realize long BEV cruising range by means of a highly efficient system Utilize in BEVs 37 38 Battery durability (battery remaining capacity after long-term use) Battery capacity maintenance rate 100% World-class durability targets C-HR/IZOA Second-generation Prius PHV (Approx. 75%) First-generation Prius PHV (BEV cruising range) 0 10 years Years passed Aim for world-class durability to control degradation in various aspects including battery materials, pack structure, and the steering system 38 39 BEV business models envisioned by Toyota Peripheral services Development and manufacturing Used vehicle sales Leases Assessment Sales Reuse of batteries Battery recycling Increasing battery durability not only improves product appeal, but is effective for used vehicle sales and the battery reuse business 39 40 Need to develop partnerships in development and supply Battery capacity needed for all Toyota electrified vehicles Approx. 20-fold Current rate of popularization Previous rate of popularization 1997 2018 2025 2030 Batteries are needed at a rate significantly exceeding previous expectations 40 Framework for battery procurement and collaborations 41 Coordinate with global battery manufacturers in addition to conventional partners, Panasonic and PEVE, to respond to the rapid popularization of electrified vehicles 41 42 Message from Toyota TOYOTA Aiming to popularize BEVs 43 • Much work lies ahead to achieve the popularization of BEVs. Specifically, we will be focusing on vehicle development and the stable supply, improved durability, and reuse of batteries. • Toyota is steadily preparing a framework to respond thoroughly to the challenge, putting all the pieces in place, including the construction of new business models. • We are searching for partners in a more extensive and open manner as we strive to contribute to a better society. Please join us in promoting our initiatives. 43 Transitioning from an automobile company to a mobility company Mobility for All Our home planet Popularization of electrified vehicles on a global scale