The world's best-selling car, the Toyota Corolla, is facing a historic turning point. On its 60th anniversary and with cumulative sales exceeding 57 million units, this "people's car," which once surpassed the Volkswagen Beetle, is being pushed to the crossroads of electrification. Toyota executives have issued a rare warning: if the company clings to tradition, it "cannot survive."

According to an exclusive report by Japan's NHK, in a special feature broadcast on July 19, Toyota's current chairman and former CEO Akio Toyoda frankly admitted: "A strong sense of crisis is permeating the company." He emphasized that a new competitive landscape and technological evolution are "inevitable," and the biggest risk lies in "complacency"—"once that happens, everything will be over."
The program revealed for the first time Toyota's "highly confidential" next-generation Corolla development base. Several prototype vehicles covered in camouflage were on display , including sedans , hatchbacks, crossover versions, and a GR performance version. One concept car was highly similar to the Corolla Concept unveiled at the Japan Mobility Show last October : a low-slung body, sporty front end, closed grille, and charging port design, pointing to its all-electric positioning.
Toyota CEO Tsuneharu Sato stated that the new vehicle will be built on a new GM platform and will support four powertrain options: pure electric , plug-in hybrid , hybrid electric, and gasoline. "Regardless of the power source, the goal is to create a high-value car that everyone wants to drive." However, he did not disclose specific parameters, battery capacity, range, or launch date.
Several engineers involved in the development admitted to feeling the pressure in interviews: one engineer bluntly stated, "I think we are already at a disadvantage in the competition with Chinese automakers ." The report points out that Toyota is reflecting on the lag in its development cycle and manufacturing system compared to its Chinese counterparts such as BYD .
It's worth noting that Toyota recently cancelled its flagship all-electric project— the Lexus LF-ZC , which was originally planned to feature next-generation batteries and advanced manufacturing processes. Meanwhile, its electric vehicle lineup for 2026 remains limited to updated versions of the bZ4X (overseas name 2026 bZ), C-HR+, and bZ Woodland, with no truly new flagship all-electric model yet launched.
Industry observers point out that while adhering to a multi-powertrain compatible platform in 2026 offers short-term flexibility, it struggles to balance the efficiency, space, and software integration advantages of a pure electric architecture. As one former OEM engineer commented, "This exposes Toyota's substantial lag in the pure electric vehicle race."
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