Automotive News Europe - December 2017 - Talk from the Top Supplement - 36

AUTOMOTIVE NEWS EUROPE

TALK FROM THE TOP

Alternative plans
Toyota exec says brand will increase its big bet on hybrids in Europe

oyota's big bet on hybrids is paying
off in Europe, where customers are
looking for an alternative to diesels. The
automaker expects models with its gasoline-electric powertrain to account for
half of all its sales in the region by 2020,
up from 40 percent now. One way Toyota hopes to lure new customers to its hybrids is by making them more powerful.
Toyota Europe CEO Johan van Zyl outlined the plan during an interview with
Automotive News Europe Correspondent
Andrea Malan.

to make the diesel clean. For smaller
models, it is more difficult [to justify the
added cost of the technology needed to
reduce diesel emissions]. We will decide
model by model, but the chances of us
launching a new diesel engine in a passenger car or LCV are limited.

What percentage of your sales in Europe are hybrids?
Currently, 40 percent of our sales in Europe [which for Toyota includes Russia
and Turkey] are hybrids. Our target is to
reach 50 percent hybrids in Europe by
2020. Today, the share is close to 50
percent in Western Europe and rises to
60 percent in countries such as France.

Has the backlash against diesels
helped Toyota?
Regulatory changes and stricter emissions targets are supporting our decision to go with hybrids.

Toyota announced at this year's
Frankfurt auto show it would soon
enlarge its hybrid powertrain range
by adding more powerful versions.
What's driving this?
Our customers are rational buyers who
look for a favorable total cost of ownership but they also want driving pleasure.
We think this move will enable us to cater for those looking for more power.
Will those new hybrid powertrains replace your diesels?
We have tried to differentiate ourselves
by having hybrid variants in every segment except the A-segment [minicars].
When we launched the C-HR crossover,
we decided not to offer a diesel. Today,
77 percent of C-HR sales in Europe are
hybrids and the figure is 90 percent in
France. We'll decide model by model
[whether to exclude a diesel variant], but
our future is hybrids.
Why doesn't Toyota stop offering diesels altogether?
Diesel is still necessary for vehicles such
as the Land Cruiser [large SUV], which
comes with a 2.8-liter, Euro 6.2 compliant engine. In this kind of engine, we can
provide all the necessary technology

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What is Toyota's current diesel share
in Europe?
It's about 15 percent, down from 25
percent in 2015. It's below 7 percent in
Italy, where our hybrids are very popular.

Will you add 48-volt mild hybrids to
your powertrain mix?
For now, we stay with our full-hybrid system.
Will you launch more plug-in
hybrids in Europe?
To achieve CO2 requirements,
we will need to balance our
powertrain mix in Europe. To
do this we will offer full-hybrids, plug-in hybrids and battery-electric vehicles.

Meet the
Europe boss
❚ NAME: Johan van Zyl
❚ T
ITLE: Toyota Europe

President and CEO

❚ AGE: 59
In which segment will Toyota
❚ M
AIN CHALLENGE:
offer its first electric vehicle?
Getting diesel owners
It's a matter of cost versus the
to switch to hybrids.
possible selling price. Today, it
is difficult to make a business
case for a small battery-elecBased on our discussions with PSA, there
tric car. It is easier to launch an SUV or is no change to our relationship.
premium vehicle as an EV.
What is Toyota's reaction to plans by
Why doesn't a hybrid version of the some European governments to ban
Aygo minicar work?
vehicles with internal combustion enWe sell our Yaris [subcompact] hybrid at gines by 2040?
a premium position in its segment. That's We take those announcements very sehow we can create a business case for riously because we have to determine
the model. The A-segment [minicar] how we are going to change our offeris much more focused on cost. At that ing in the market. When I hear about
level, a business case would be much banning this or that technology I think
tougher to make. That might change as it would be better to say: "This is the
the technology gets less expensive.
target. If you achieve it with this techWill PSA's takeover of Opel affect the nology, that's fine." That would also help
joint venture you have with PSA in stimulate research on improving internal
the Czech Republic?
combustion engines. ANE

In Partnership with

2017

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