In 2023, Toyota achieved unprecedented success by selling more cars than ever before. The Japanese conglomerate delivered a staggering 11,233,039 vehicles, with only 104,018 being electric vehicles. This accounts for just 0.926 percent of Toyota, Lexus, and other subsidiaries' total sales. The limited impact of EVs on Toyota's growth has led the company to believe that there is still a substantial demand for combustion engines in the market.

In an automotive landscape dominated by brands committing to an all-electric future, Toyota stands out as a contrarian. Numerous automakers, including Jaguar, Chrysler, Lotus, Aston Martin, and more, have pledged to go fully electric by the end of the decade. Even Toyota's luxury brand, Lexus, has committed to halting the sale of combustion engine cars by 2035.

In contrast, Toyota argues that battery EVs alone cannot achieve carbon neutrality. Chairman Toyoda emphasizes the insufficient charging infrastructure globally, highlighting that approximately a billion people lack access to electricity. Toyota's diverse market presence, including regions with limited electricity access, is a key factor in their decision to maintain a focus on combustion engines.

While the automotive industry races towards an electrified future, Toyota's commitment to combustion engines sends a clear message – consumer choice matters. Chairman Akio Toyoda's vision for a diversified automotive landscape, with a mix of combustion engines, hybrids, and alternative fuel vehicles, challenges the prevailing narrative. As Toyota embarks on a major engine development project, the industry watches to see if their contrarian stance will pay off amidst the rising tide of electric vehicles.