- Toyota Aims to Boost Electric Vehicle Resale Values with Superior Battery Technology – Investing in battery innovation and quality control for extended EV reliability.
- UK Study Highlights Electric Cars’ 51% Depreciation Over 3 Years, but Toyota Pioneers “Full Service” Lease Program to Address Buyer Concerns and Maintain Resale Values
According to the most recent UK data, electric vehicles have lower resale values than petrol cars, but Japanese automaker Toyota claims it has a plan to slow the decrease in depreciation by the time its new-generation models hit the market.
Toyota executives and its long-term technical partner Panasonic argue that superior battery technology will support the high resale values that have long been associated with Toyota vehicles.
“One of the biggest issues for (electric cars) is residual values, they’re plummeting,” Sean Hanley, Toyota Australia’s sales and marketing boss, told media on the eve of the 2023 Tokyo Motor Show, where the company is expected to make up for lost time by unveiling up to a dozen new-generation electric cars.
“According to a UK study commissioned by (a used-car buying service), electric cars lose 51% of their purchase value in three years, compared to 37% for gasoline-powered vehicles.”
“Researchers believe this is due in part to a market correction in which manufacturers have reduced (electric car) sticker prices to boost flagging sales.”
“In addition, experts in the used-car market predict that the trend of higher rates of depreciation will continue.”
“As a result, (car subscription services) are closing their doors to electric vehicles.” They are overly exposed. The (financial) risk is excessive.
“And it will be difficult to find a fleet management company that will provide an operating lease on an electric vehicle.” Yes, a financing lease; but an operating lease at a competitive rate is improbable.”
When Toyota Australia’s first model to be offered locally, the BZ4X, arrives in showrooms in February 2024, the executive said the company is exploring a “full service” lease programme to assist alleviate some of the anxieties buyers may have about electric cars.
Toyota claims it is also spending extensively in battery technology and innovative manufacturing procedures in the hopes of giving its electric vehicles an advantage in terms of reliability and longevity, and thus higher resale prices.
“Our production over more than a quarter of a century exceeds 20 million batteries (for hybrid vehicles) and the expertise we have accumulated gives us a competitive edge,” Mr. Hanley added.
“Of course, there are a lot of batteries and a lot of electric cars around the world today.” However, no two batteries are alike.
“In terms of quality, performance, safety, and reliability, the batteries produced (by Panasonic) are a cut above those offered by many others on the market.”
“It all comes down to advanced technology, cutting-edge manufacturing techniques, and stringent quality-control measures.”
“A telling example is that each of the batteries built here is tested for an extensive period – not just days, but weeks.”
The Panasonic battery factory near Toyota’s headquarters in Nagoya aged each battery pack for 20 days (the battery was repeatedly charged and drained before being fitted into an electric car), which is twice as long as the ageing process used by other manufacturers.
The business argues that this is only one example of the efforts Toyota and Panasonic make to ensure that the battery packs in its electric vehicles outlast those in competition vehicles.
“Moving forward, (Toyota) is advancing our efforts towards introducing next-generation (electric vehicles) in 2026, evolving batteries with new technologies to meet customer expectations, some with a cruising range of 1000km,” Mr. Hanley added.