Toyota’s affordable alternative to BYD

Toyota has confirmed it will introduce a first-ever fully-electric Yaris hatch alongside the hybrid and petrol versions. This move marks a significant step in the brand’s strategy to embrace electrification, particularly in the European market.

Andrea Carlucci, Toyota’s European Vice President of Strategy and Marketing, shared his insights during an overseas interview. He emphasized that as the automotive industry shifts towards electrification, Toyota cannot ignore the need for a fully-electrified version of the Yaris.

“If electrification is the direction, I think we cannot avoid having a fully electrified version [of the Yaris],” Carlucci stated.

This shift aligns with Toyota’s broader goal of offering a multi-energy platform. The company aims to provide customers with various powertrain options, ensuring that each solution meets individual needs.

“The ideal path is to offer a platform where we have multi-energy options, so delivering different powertrains that are the right solution for every customer. Let me put it to you this way: a multi-energy approach isn’t just one solution. It has to be the solution.”

While there is no official announcement regarding the electric Yaris in Australia, the potential addition could be well-received by the brand. Currently, Toyota offers only one all-electric vehicle in the market, the bZ4X, with an electric HiLux set to follow soon.

An electric Yaris would position Toyota as a competitor in the growing electric hatch segment. It is expected to be the brand’s most affordable EV, challenging models like the recently unveiled Volkswagen ID. Polo and Chinese rivals such as the BYD Atto 1.

Toyota Australia has not yet commented on whether the electric Yaris will make its way to the country. However, the current hybrid-only Yaris is the cheapest car offered by Toyota in Australia, starting at under $30,000. Any electric version is likely to be more expensive.

One potential hurdle for the Yaris EV reaching Australia is its source. The electric Yaris is expected to launch first in Europe, potentially sourced from Toyota’s factory in France. Importing European budget cars to Australia can be costly due to high shipping expenses and tariffs.

The Yaris currently available in Australia is sourced from Japan, which typically incurs lower shipping costs, allowing for a more affordable price point. The new-generation hybrid Yaris is expected to arrive in 2027, with the electric version possibly launching as late as 2028.