According to Toyota’s new CEO Koji Sato, there are just three easy ways for the well-known Japanese carmaker to earn greatly from electric vehicles (EVs). Toyota’s new strategy was reviewed by CEO Sato on April 1, 2023.

Toyota is currently in stage one of its new strategy, with stages two and three arriving in 2026 and 2030, respectively. By 2025, it plans to produce 1.5 million EVs, and by 2030, 3.5 million. According to the approach, productivity and economies of scale will result in reduced pricing and higher sales volume.

In “Step 1,” which started before Sato took charge, Toyota released its first bZ-branded EV on a new platform. According to Sato, Toyota learnt from the bZ4X’s failed introduction, and the EV’s flaws served as a wake-up call for the business.

Toyota will incorporate Woven’s Arene automotive operating system in Sato’s “Step 2.” The suggested lineup will also include various “improvements and modifications,” and this new software will complement Toyota’s new electric vehicle platform.

“Step 3” is what Sato refers to as the automaker’s “three-layered cake.” Toyota, according to him, will adopt a new structural body and expand the Arene operating system’s software capabilities. With the new body, a revised EV platform will maximise volume, functionality, and efficiency.

Toyota needs to produce a lot more EVs if it wants to compete with Tesla. The Japanese manufacturer plans to increase margins and EV profitability by producing 10 million vehicles annually.