Toyota has been a real heavyweight in the automobile industry for years, and they’re still proving they’ve got some tricks up their sleeve. One area where they’re hitting the nail on the head is truck prices. Toyota’s keeping prices competitive, making their vehicles accessible to more people than ever before.
Additionally, Toyota is making significant strides toward becoming a major player in the EV market and is positioning itself to compete with other established automakers and up-and-coming EV startups. And the company’s top-secret plans are set to transform the way we drive with cutting-edge technology and game-changing innovations.
But, unfortunately, the same can’t be said for Ford and GM. These titans of the auto industry are stuck in their old ways, relying on traditional models and marketing strategies. It looks like they’re stuck in a traffic jam while Toyota is cruising by in the carpool lane.
Toyota fights dealership markups
In recent years, Toyota has been engaged in a fierce battle to get its trucks and SUVs onto dealership floors and into the eager hands of customers. However, this struggle was only the beginning, as some dealers have been shamelessly marking up the prices of these highly sought-after vehicles. The situation reached a new level of absurdity with the release of the updated Toyota Sequoia, the redesigned Tundra , and the much-anticipated GR Corolla . Some dealerships were adding an astonishing $20,000 to the price of the Sequoia and Tundra, while the GR Corolla, which was supposed to be an affordable sports car, was being marked up by an incredible $30,000 above its MSRP.
Toyota’s CEO, Koji Sato, is taking a stand against the outrageous markups on vehicles and plans to satisfy the increasing demand. In a recent meeting with dealers, Sato revealed that Toyota is committed to rebuilding new vehicle inventory at a rapid pace and won’t limit production to maintain high prices and low incentives.
Unlike General Motors , which stopped truck production to keep prices high, Toyota is committed to providing its customers with fair prices and ample supply. The company’s vice president, David Christ[8] , said they plan to produce every Toyota they can get parts for.
Toyota is adding trucks to its inventory, although it currently has more SUVs available. Their lot often does not appear to be at full capacity, and, likely, they are not receiving as many trucks as other companies like Ford, GM, RAM, or Jeep. However, the trucks that do come in sell very quickly.
Toyota Tundra TRD
For instance, a Toyota Tundra TRD in a desirable green color with additional features like the TRD Off-Road package and CrewMax 6.5 retails for $54,000. Despite the absence of a dealer add-on sticker or markup, it sold rapidly for $60,404.
Toyota Tacoma
Another example is the Toyota Tacoma , a TRD 4×4 with an MSRP of $41,242 , which also has a “sold” sticker on every Toyota lot. Interestingly, while Ford had many XLTs sitting unsold on the lot, there were no markups on any of the higher trim-level Toyotas, despite their higher price. And there are several reasons why Toyota is still selling while Ford, GM, and RAM are not.
In recent years, American pickup truck makers have been accused of being greedy by raising the prices of their vehicles significantly, often above the MSRP. As dealerships are receiving more inventory again, Ford and GM have chosen to raise the MSRP instead of lowering prices, allowing their dealers to make the same profits without adding extra markup. While Toyota is experiencing high demand for their vehicles, the reason why many of Ford’s trucks are not selling can be easily observed when visiting their dealerships.
The 2023 F-150 4×4, for example, with various options like Supercrew Platinum Series, can increase the MSRP from $68,490 to $83,625.
Another one is the 2023 F-150 Supercrew Lariat package , with an MSRP of $78,440.
The reliability of Ford trucks is about average, and Toyota’s sales are benefiting from offering slightly lower prices on high-end Tundra models compared to the Platinum F-150. However, Toyota continues to sell well because they maintain their reputation for quality, although it is not as good as when they used the older V8 engines in the Sequoias and Tundras. With the new twin-turbo engines, the reliability of the Tundra has decreased slightly, but it is still expected to be better than Ford vehicles.
Toyota excels with affordability
Toyota’s commitment to keeping prices competitive has allowed the company to offer a wide range of high-quality vehicles at affordable prices, making them able to reach a wider audience and appeal to more budget-conscious consumers who may not have considered Toyota vehicles in the past. This has been a key factor in Toyota’s success in the global automotive industry.
Moreover, Toyota’s competitive pricing strategy has not compromised the quality or reliability of its vehicles. Toyota has been able to maintain its reputation for producing cars that are durable, efficient, and safe while still offering them at prices that are affordable for many consumers.
Despite the fact that Toyota has received criticism from the media for its delayed entry into the electric car market, the company is set to make a significant shift in that direction.
Toyota is continuing its investment in alternative fuel technologies such as the Prius hybrid and the Mirai hydrogen fuel car. Although some activists, industry experts, and shareholders have criticized Toyota for not quickly embracing electric vehicles and being left behind, the company replaced its old CEO with a younger CEO who was expected to prioritize electrification.
The new CEO, Koji Sato, surprised many by confirming his belief that hydrogen is the best path to carbon neutrality . Therefore, while Toyota changed its CEO, it has not altered its strategy on electrification. Unlike most automakers that are primarily focusing on battery electric vehicles, Toyota remains committed to hydrogen.
Hydrogen fuel cell technology offers a highly concentrated source of energy with great efficiency. Additionally, hydrogen possesses the greatest energy content per unit of mass compared to other common fuels. The speed at which hydrogen fuel cell power units can be charged is very fast, similar to that of traditional internal combustion engines or even faster.
Nevertheless, this does not imply that Toyota is entirely abandoning electric vehicles as part of its newly established plan.
Toyota’s electric revolution
Sato has revealed that the company’s focus is on developing new electric vehicles that are distinctively Toyota. Under the Lexus brand, the automaker plans to launch its Next Generation EVs in 2026, which will be designed specifically for battery electric vehicles.
The electric trucks that have been introduced, such as the GMC Hummer EV SUT , Ford F-150 Lightning , and Bollinger B2, are typically quite large. Even the Rivian R1T , which is considered more adventurous, is still quite sizable. Toyota’s upcoming Pickup EV, on the other hand, appears to be smaller in size, with a sporty appearance and a relatively compact bed and cabin. While we don’t yet know what this truck will be named or if it will be an electric version of the Tacoma, it seems to resemble a traditional pickup truck more than the others. Despite having some similarities to the Tundra, it is expected to have more in common with the next-generation Tacoma.
So far, electric pickup trucks have been mainly designed for off-road capability due to the popularity of off-roading and the suitability of electric powertrains for it. Toyota is likely to follow this trend with its own electric pickup truck, as evidenced by its chunky off-road tires and “TRD Pro ” branding. Toyota has plans to release 15 electric vehicles by 2025, and the electric pickup truck is expected to be one of the first. While it is unclear how far along Toyota is in developing the powertrain, the exterior design suggests it is nearing production readiness, as was the case with a previous Tundra model.
Toyota will be responsible for the entire process, from developing the battery and platform to constructing the vehicle. The goal is to make appealing BEVs available to a wider range of customers by simplifying the production process. To achieve this, Toyota recognizes the need to make significant changes in all aspects of the business, from manufacturing to sales and service, with Lexus taking the lead in driving this transformation. Additionally, Toyota is likely to form partnerships with other automakers to develop and produce BEVs. This could help the company share development costs and accelerate the pace of BEV development.
Overall, Toyota’s shift towards BEVs is likely to result in a significant transformation for the company. While it may take some time for Toyota to fully transition to electric vehicles, the company is likely to remain a major player in the automotive industry for years to come.