Japan's Number One Automaker Chooses Hybrids to Keep Its Market Edge
Toyota Motor Corp., the world's largest automaker by market value, plans to double the number of models that use hybrid engines to six by about 2006, including sport-utility vehicles, President Fujio Cho said.
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| "We will release hybrid sport-utility vehicles in the next two to three years," said Toyota President Fujio Cho. (Photo: Toyota) |
Starting with the 1997 introduction of the Prius in Japan, Toyota has sold 140,000 cars with engines driven by a combination of gas and electricity. Toyota is also rolling out a larger, faster and cleaner version of the Prius hatchback later this year. But this is just the beginning. "We will release hybrid sport-utility vehicles in the next two to three years," Cho told Bloomberg News in a television interview at Toyota's fifth environmental forum in Tokyo.
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| In order to meet the demands of the growing hybrid vehicle market it is necessary for makers to diversify their offerings from the standard compact car. (Photo: Toyota) |
The hybrid vehicle market is worth approximately $2.5 billion, and expected to triple by 2006. In order to meet the demands of the consumer, diversifying the availability of hybrid electric vehicle models is necessary to stay at the head of the race.
"To make their green cars successful there are two main objectives, which are meeting emission regulations and offering lower prices," said Masayuki Kubota, who helps manage the equivalent of $11.4 billion (USD$8.5 billion) at Daiwa SB Investments Ltd. Once they are met, sales of hybrids will surge.