Toyota Motor plans Y4.9t investments in EVs, AI

Toyota motor plans to invest 2 trillion yen in supply chain management and mobility solutions, including EVs and hydrogen technology, the Nikkei Asia reported on Wednesday.

The company will also dedicate 1.7 trillion yen to growth areas like AI, hydrogen, batteries, and software-driven vehicles.

The future of mobility extends beyond transporting people and goods; it’s about data and energy, said Toyota President Koji Sato.

Sato said Toyota will also invest 380 billion yen in human resources, including suppliers, in the current fiscal year.

Addressing concerns about slowing EV growth, Sato reaffirmed Toyota’s commitment to a multipathway solution. The company will offer a range of eco-friendly vehicles, not just prioritise EVs.

This approach complements Toyota’s continued success with hybrids, particularly outside Japan. However, analyst Koji Endo at SBI Securities warns that competition will intensify new-generation EVs with longer range and competitive pricing are expected in 2027-2028.

In addition to future investments, Toyota announced a stock buyback plan of up to 1 trillion yen (410 million shares) by the end of April 2025. Despite the positive news, Toyota’s share price fell slightly (0.56 per cent) on the Tokyo Stock Exchange.