Toyota Up In Arms Against Tesla's Groundbreaking Gigacasting Technique In EV Production: Report

Japanese automaker Toyota Motor Corp TM is reportedly striving to match the production pace of EV giant Tesla Inc TSLA. The challenge lies on the production line where Tesla’s groundbreaking gigacasting methodology is redefining the rules of the game.

What Happened: Toyota is making significant progress in solid-state battery technology and heavily investing in the US EV market. Yet, it finds itself in a challenging position due to Tesla’s innovative assembly process, termed “gigacasting” by CEO Elon Musk, Financial Times (FT) reported.

Tesla’s gigacasting, unlike conventional assembly techniques that necessitate the welding or stamping of several parts, utilizes casting machines to produce sizable aluminum body components. This method, in use since 2020 for its Model Y SUV, has dramatically streamlined and accelerated the vehicle manufacturing process.

According to veteran automotive analyst  Takaki Nakanishi, "The way Toyota builds cars has been considered the standard but it's extremely shocking to think that what Tesla is proposing is likely to become the standard for producing EVs.”

Nakanishi told the FT that the impact of the technique on Japanese car-making will be “monumental.”

What Is Ahead: Toyota has stated that it will not fully embrace Tesla’s gigacasting technique, choosing instead to leverage its many years of expertise to carve out its unique path.

“We have done casting for a long time… and ultimately we believe we can produce a product that will be cheaper, lighter, and thinner with high performance,” commented Kazuaki Shingo, Toyota's chief production officer, as reported by FT.

Toyota is also considering potential setbacks, such as the steep cost of replacing a single molded underbody, which could lead to an appreciable rise in the number of vehicles considered too costly to repair.

Toyota aims to sell 3.5 million battery-powered vehicles annually from 2030 but only 123,000 this year.

Check out more of Benzinga's Future Of Mobility coverage by following this link.

Read Next: Toyota’s EV Pickup Trial In Thailand Aims To Outshine Warren Buffett-Backed BYD And Great Wall Motor

Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

Market News and Data brought to you by Benzinga APIs
Posted In: NewsTop StoriesTechMediabenzinga neuroelectric vehiclesEVsGigacastingkazuaki shingomobilityTakaki Nakanishi
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!