Published - May 18th, 2023 @ 11:10 AM (GMT+2)

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Toyota, Daihatsu, and Suzuki reveal electric micro-van plans at G7 summit.

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Toyota Motor Corp (NYSE:TM), along with its partners, Daihatsu and Suzuki Motor Corp, has revealed plans to introduce a compact electric van designed for Japan's delivery sector. This joint venture aims to develop a battery electric vehicle (BEV) system for the micro-sized commercial van. The announcement was made during the Group of Seven (G7) summit in Hiroshima.

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The forthcoming van, available under the Toyota, Daihatsu, and Suzuki brands, is expected to have an impressive range of approximately 200 km (124 miles) per charge. Daihatsu, a subsidiary of Toyota since 2016, will oversee the manufacturing of these vehicles. The companies intend to release the electric van by the end of the current financial year, specifically before March 31, 2024.

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The van will be classified as a "kei" vehicle, known for being low-powered and enjoying favorable tax treatment in Japan. Kei vehicles have gained immense popularity among businesses and households for their cost-effective transportation of agricultural produce, parcels, and other goods within urban areas and the countryside. According to the latest transport ministry data, kei models represent 40% of Japan's 78.8 million four-wheel vehicles as of the end of February.
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Toyota joins other Japanese automakers in expanding electric mini-van offerings.
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This announcement comes when reducing emissions has become a prominent agenda at the G7 meeting. Toyota, holding a 4.89% stake in Suzuki, and its partners' initiative align with the trend of other Japanese automakers expanding their electric vehicle offerings, particularly in the mini-commercial van segment.

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Honda's move is part of its broader strategy to electrify its vehicle lineup. Honda Motor Co Ltd, for instance, revealed plans in December to launch a micro-sized commercial electric van with a target cruising range of 200 km in spring 2024. Similarly, Mitsubishi Motors Corp reintroduced its small commercial van, Minicab-MiEV, in November, with a cruising range of 133 km. In February, Mitsubishi announced its intention to commence van production in Indonesia by 2024 as it seeks to expand its sales across different regions.

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It is worth noting that Sagawa Express Co, a major delivery company in Japan, had previously expressed its intention to replace its entire fleet of 7,200 commercial mini-vehicles with electric vehicles supplied by China's Guangxi Automobile Group starting in September of last year. However, the company still needs to provide updates on the progress of this transition.
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In conclusion, Toyota's collaboration with Daihatsu and Suzuki to introduce electric micro-vans demonstrates their commitment to the growing demand for sustainable transportation in Japan's delivery industry. The joint venture aligns with the industry's shift toward electrification, as other Japanese automakers also expand their offerings in the electric mini-commercial van segment. With a competitive range per charge, these compact electric vans are poised to impact urban and rural logistics significantly.

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