Written evidence from Toyota Motor Europe (ELV0048)
HOUSE OF LORDS ENVIRONMENT AND CLIMATE CHANGE COMMITTEE
INQUIRY INTO ELECTRIC VEHICLES: CALL FOR EVIDENCE
TOYOTA MOTOR EUROPE
13 September 2023
Please see below for Toyota Motor Europe’s submission to the House of Lords Environment and Climate Change Committee inquiry into electric vehicles, call for evidence.
This submission focuses on questions relevant to Toyota’s position as a manufacturer and retailer of vehicles that use different electrification technologies, together with a business profile and details of Toyota’s multi-technology roadmap for delivering carbon neutrality.
Some responses cover a number of questions – this is clearly indicated in the text.
About Toyota
Toyota and Carbon Neutrality
A multi-technology strategy for vehicle decarbonisation
16. For many years, Toyota has also been investing in energy diversity, new battery technologies and the potential of hydrogen as the basis for a future clean energy society.
The role of battery electric vehicles in decarbonisation
Electric Vehicles Inquiry: response to questions
Question 1. What are the main obstacles to the achievement of the Government’s 2030 and 2035 phase-out dates? Are the phase-out dates realistic and achievable? If not, what steps should the Government take to make the phase-out dates achievable.
Toyota and the Government have the same end goal: net zero carbon emissions. For Toyota, this does not just concern the elimination of carbon emissions from vehicles, but also from manufacturing and all associated operations, including raw materials, supply chain, logistic, end-of-life vehicle recycling and disposal and retail network operations.
Toyota is aligned with the Government’s intention for all new vehicle sales to be ZEVs from 2035 and it is actively planning to meet this target Europe-wide. In addition, all its European manufacturing operations will be carbon neutral by 2030.
In order to meet the 2030 target, it is important to use all the low carbon options available and not focus on a single technology, namely BEVs. Full hybrid and plug-in hybrid vehicles have played a significant role in reducing CO2 emissions and, can continue to help accelerate CO2 reduction towards 2030. Toyota’s continuous improvement of its electrified vehicle technologies has increased the efficiency performance of its hybrid and plug-in hybrid vehicles.
Toyota’s full hybrid technology can continue to help accelerate the reduction in CO2, with its well-proven efficiency and ability to operate for a significant time (around 80%) and distance (around 60%) in zero emissions mode for typical urban journeys. As affordable and accessible electrified vehicles, they support the principle of ensuring “mobility for all” and a smooth transition to net zero.
It is important that clarity is provided as soon as possible on the Government’s proposed Significant Zero Emissions Capability (SZEC), the criteria which will define which alternatives to BEVs – hybrids and plug-in hybrids – can continue to be sold up to and beyond 2030.
Vehicles using these efficient, electrified technologies should continue to be sold through to 2035 on the basis of their low emissions and Significant Zero Emissions Capability performance.
Vehicles which use hybrid and plug-in hybrid technologies are also convenient, practical, and affordable to purchase and run. Toyota firmly believes that hybrid electric and plug-in hybrid electric vehicles must play their part in supporting the Government in the delivery of its CO2 targets.
The proposed introduction of a new Zero Emissions Vehicle Mandate in January 2024 presents a challenge in terms of timescale. The automotive industry typically works to product cycles of five to six years, so Toyota would welcome flexibility during the initial years of the mandate so that manufacturers and the full supply chain have time to adapt to meet its requirements.
Further issues, beyond the control of manufacturers such as Toyota, could jeopardise the 2030 and 2035 phase-out timetable. The progress to zero emissions is reliant on delivery of crucial enabling conditions, such as access to charging infrastructure and the provision of a clean energy supply. A supply chain ready to support electrification and provision of the necessary raw materials will also need to be secured.
With its introduction of a wide range of hybrid electric vehicles to the market Toyota has provided people with an affordable solution that have proved popular, accessible, and practical. This has enabled a transition in carbon emissions that would otherwise be impossible without a comprehensive charging infrastructure.
Furthermore, the potential of hydrogen as a ZEV technology should also be a priority, including its suitability for long-distance transport and heavy-duty haulage. For many years, Toyota has been investing in energy diversity, new battery technologies and the potential of hydrogen as the basis for a future clean energy society.
Infrastructure development should extend to support for the manufacture, distribution, and supply of hydrogen fuel for hydrogen fuel cell electric vehicles (FCEVs).
A robust and accessible EV infrastructure and hydrogen refuelling station network throughout the UK is a necessity, even though it will be time-consuming and costly to deliver this in remote, rural locations. This also reinforces the importance of maintaining sales of hybrid electric and plug-in hybrid electric vehicles through to 2035 as well as defining a clear role for hydrogen fuel cell electric vehicles.
Furthermore, to meet the Government’s phase-out timetable there needs to be a societal shift to encourage significant changes to consumer behaviours, technologies, and infrastructure. The Government and all stakeholders will need to play their part in achieving these changes.
Question 16. What is the value of alternative transport models such as car clubs and micro-mobility vehicles in the Government achieving the 2030 phase-out date, and how should the Government consider their roles and opportunities for use in transport decarbonisation?
Toyota is transitioning from its established business as a carmaker into a mobility provider, true to its mission to provide mobility for all, with no one left behind. It is developing new, sustainable micro-mobility solutions and ways for people to access mobility that better suit their personal needs and preferences. It is also supporting innovation in connected mobility, where personal and public transport are co-ordinated and accessible. It is important that the Government and all stakeholders take the opportunity of the decarbonisation programme to support the development a new mobility eco-system that takes into account the mobility needs of everyone in society.
Question 18. What are the main challenges that UK consumers face in their use of EVs?
Question 19. What are the main benefits that UK consumers could realise from using an EV?
Question 32. What are the issues facing rural residents, urban residents, and sub-urban residents and how do they differ?
These questions all concern the consumer experience and touch on Toyota’s commitment to provide mobility for all, with no one left behind. It is essential that in the progress towards carbon neutrality, communities and individuals are not disadvantaged because of their location or social status.
A robust and accessible EV infrastructure that extends to all parts of the UK is a necessity. It will also inevitably be time-consuming and costly to establish in remote, rural locations. This reinforces the importance of maintaining sales of hybrid and plug-in hybrid electric vehicles through to 2035. This will help ensure that people in locations where infrastructure is slow to arrive are not penalised simply on the basis of where they live.
Furthermore, hybrid and plug-in hybrid vehicles have the flexibility to cover significantly greater distances than BEVs, which have a more limited range and necessary down-time for recharging. These qualities are of importance to people living in remote locations, where long journeys may be necessary to reach services such as health care, education, and shops.
In the transition to zero carbon, the focus needs to be wider than just battery electric vehicles to include other electrified options. Consumers will realise real-world benefits in being able to access hybrid and plug-in hybrid electric vehicles that have the potential to maintain or even accelerate the rate of reduction in CO2 emissions and improve air quality. With carbon as the enemy, Toyota believes in using all potential powertrains to reduce and ultimately eliminate emissions. These include hybrid electric and plug-in hybrid electric as well as zero emission battery electric and fuel cell electric vehicles.
Question 7. What are the likely costs that will be faced by consumers as a result of the Government’s phase-out dates for non-zero emissions vehicles?
Affordability is key issue for consumers considering purchase of a BEV or other ZEV. Although day-to-day running costs may be lower, the initial purchase cost is currently higher than for an equivalent petrol or diesel vehicle. The market will take time to mature, both for new vehicles and the establishment of healthy used vehicle parc.
Toyota’s business model is established on the principle of “providing the right car, in the right place, at the right time”. True to this principle, Toyota hybrid and plug-in hybrid electric models can provide an alternative that is affordable for more consumers, and which can contribute to continued reduction in CO2 emissions towards 2035. This would help avoid a scenario where motorists unable or unwilling to make the change to a ZEV, choose to hold on to their higher polluting petrol and diesel vehicles for longer.
Closing comments
Toyota does not confine its strategy to a single solution, but has instead taken a multi-technology path, identifying, developing, and bringing to market different technologies appropriate for different mobility requirements with a historic commitment to reducing carbon as much as possible and as quickly as possible.
Toyota will continue to enter any further discussions with Government, based on constructive dialogue to address these and other associated issues.