Al-Futtaim Group's Strategic Partnership at COP28

Al-Futtaim Group and Its Strategic Partnership at COP28

Al-Futtaim Group, one of the largest diversified conglomerates in the Middle East and a leader in the automotive sector, is participating as the "Strategic Partner for Electric Transport" at the COP28 climate change conference. As part of this strategic partnership, "Al-Futtaim Automotive," under the umbrella of Al-Futtaim Group, will provide a fleet of 370 electric vehicles, including passenger cars, SUVs, and buses, to support the COP28 conference.

The fleet will include 100 units of the luxurious Lexus RX 350h, a hybrid SUV, along with 10 fully electric or plug-in hybrid Toyota vehicles.

The choice of the "Lexus RX" for the COP28 fleet was a natural one, as it has been a pioneer in sustainable luxury vehicles since its launch in 2005. It was the first vehicle in the luxury SUV category to feature a powerful gasoline engine alongside an electric motor and a self-charging battery. Additionally, it was the first hybrid from Lexus to outsell its gasoline-powered counterparts in the UAE, and it remains the best-selling hybrid model in the country today.

On this occasion, we had an interview with Ki Fujita, the Chief Representative of Toyota's regional office for the Middle East and Central Asia, where we discussed the company's vision for sustainable transport solutions.

1. Can you tell us more about your company's short-term and long-term sustainability goals?

Climate experts emphasize the importance of limiting long-term global temperature increases to 1.5 degrees Celsius. In this context, key sectors, including the automotive industry, are reviewing the status quo and adapting to face the challenge of achieving carbon neutrality together.

Toyota Motor Corporation began its journey towards carbon neutrality twenty years ago with the launch of the Prius in 1997, the first mass-produced hybrid electric vehicle. Over the past 25 years, the company has sold more than 20 million plug-in electric vehicles, contributing to a global reduction of carbon dioxide emissions by over 160 million tons. We remain committed to achieving carbon neutrality by 2050 by adopting a multi-faceted approach to innovate sustainable transport solutions that leave no one behind.

We celebrated a significant milestone in our efforts to electrify the transport sector with the opening of a new plant for the production of fully electric vehicles last May. This specialized facility will manage the development, production, and trade divisions of Toyota Motor Corporation and lead the company's efforts to develop the next generation of fully electric vehicles. One of the primary goals of this facility is to develop a solid-state battery that enhances energy efficiency and reduces costs for an all-electric vehicle set to launch in 2026, with a range of up to 1,000 kilometers.

Our newly established hydrogen plant aims to strengthen operations along three core areas:

• Establishing local research, development, and production divisions in key markets.
• Enhancing partnerships with leading collaborators to secure affordable fuel cells.
• Fostering competitiveness and technological advancement.

The hydrogen plant is preparing to launch the next generation of fuel cell systems for commercial purposes, prioritizing battery longevity, cost reduction, and fuel consumption efficiency, with the goal of extending battery range by 20% and reducing costs by 37% through technological advancements and local positioning.

In addition to achieving carbon neutrality in all plants by 2035, we continue to expand our lineup of environmentally friendly vehicles. The company aims to develop and introduce a complete range of 30 fully electric models by 2030, including passenger cars and commercial vehicles, with a target to sell 3.5 million vehicles within the same timeframe. In the short term, the company announced in April its goal to launch 10 battery-electric models by 2026 and sell 1.5 million plug-in electric vehicles during this period. While these steps may seem intuitive at first glance, the company's efforts are expected to reduce carbon dioxide emissions by 33% by 2030 and by 50% by 2035 compared to 2019.

2. Which energy sources are most suitable for your company?

Toyota Motor Corporation asserts that there are multiple pathways to achieve carbon neutrality, and these pathways vary as much as the transportation landscapes differ from country to country. This multi-pronged approach incorporates various environmentally friendly technologies to meet diverse user needs, economic conditions, energy sources, and infrastructure readiness, allowing everyone to start contributing immediately to achieving carbon neutrality.

In this regard, Toyota has developed various engines, including hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs), battery electric vehicles (BEVs), fuel cell electric vehicles (FCEVs), and hydrogen engines, while also enhancing the efficiency of internal combustion engines and expanding its initiatives in carbon-neutral fuels.

3. How do you envision the future of the automotive sector?

We acknowledge the necessity of innovating plug-in electric vehicles, but we also believe in the importance of diversifying strategies, offering a mix of plug-in hybrid electric vehicles and hybrid electric vehicles to utilize limited resources efficiently. For example, the lithium resources for a single battery electric vehicle equivalent to 100 kilowatt-hours can be distributed across six plug-in electric vehicles, as they require smaller batteries, leading to an overall reduction in emissions.

In this context, the same lithium resources can be allocated to 90 hybrid electric vehicles, which are priced more affordably, effectively replacing a larger number of traditional vehicles powered by internal combustion engines. On a broader scale, this approach significantly contributes to reducing emissions and optimizing the use of limited lithium resources. Thus, alongside the company's long-term goal to produce a greater number of battery electric vehicles, it recommends adopting a mix of hybrid electric vehicles and plug-in hybrid electric vehicles, especially in areas lacking sufficient charging infrastructure.

Emphasizing its multi-faceted approach, Toyota Motor Corporation also focuses on fuel technologies that produce lower or carbon-neutral emissions. It is not enough to market plug-in electric vehicles and encourage their widespread adoption through new car sales; it is also necessary to reduce carbon emissions from the vehicles currently on the roads today.