30.01.2025 (Caucasian Journal). In the summer of 2019, the Caucasian Journal was excited to publish a detailed article about a groundbreaking plan to start producing the first electric cars in the Caucasus region. The first Georgia-made electric vehicles (EVs) were expected to roll out of the plant in Kutaisi in December 2019, but unfortunately, this did not happen. Since then, environmental challenges in our region and potential "green" solutions have remained a priority for us.
Meanwhile, the environmental situation in the region has continued to deteriorate, primarily due to the growing automotive fleet. The transport sector is the largest source of CO2 emissions, accounting for 40 percent of total energy-related CO2 emissions, according to a recent report of the International Energy Agency.
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| Toyota Woven City. Image: Toyota |
Can Technology Help?
What alternatives do Georgia—and the South Caucasus in general—have in the near future to improve the environment and ensure healthier conditions for its people?
One potential solution lies in the latest technologies from the world’s leading car manufacturers. Toyota Motor, the largest automaker in the world and the top-selling car brand in Georgia and the South Caucasus region, believes it can significantly contribute to a healthier and more sustainable environment in the region. According to a recent 2024 market research report by TBC Capital on the automotive sector, Toyota has surpassed other brands in Georgia's automotive fleet, and “will strengthen its lead in the future.” Now, with this leading position in automotive sales in the region, the company is increasingly focused on implementing corporate sustainability policies.
Koji Matsuno, President of Toyota Caucasus, stated, “We believe it is of utmost importance for all industries to unite to combat the aftermath of disasters occurring throughout the world, which are largely the result of human carelessness. Given this, environmental issues have become one of the top priorities for Toyota Motor Corporation. Respect for the planet is a fundamental philosophy.”
What are the roots of Toyota’s policies regarding environment and sustainability? In fact, they can be traced back to so-called "Toyoda Principles" named after the company’s founder.
In 2020, Toyota consolidated these principles into the "Toyota Philosophy," which states: “We aim for growth that is in harmony with the environment by seeking to minimize the environmental impact of our business operations, such as by working to reduce the effect of our vehicles and operations on climate change and biodiversity. We strive to develop, establish, and promote technologies that enable the environment and economy to coexist harmoniously, and to build close and cooperative relationships with a wide spectrum of individuals and organizations involved in environmental preservation”.
Toyota has developed an ambitious plan for the environment called the "Toyota Environmental Challenge 2050." This long-term vision aims for a world with zero environmental impact and focuses on six key areas:
Cutting CO2 from new cars: It is the obvious focus for a leading automobile manufacturer to develop and promote different new types of electric and hydrogen vehicles, such as regular hybrids (HEVs) like the Prius, which the company has been working on for ages and which remains a flagship in this effort. Toyota offers plug-in hybrids (PHEVs), which you can plug in to charge, and fully electric cars (BEVs), which run entirely on batteries. Toyota is also exploring fuel cell electric vehicles (FCEVs), which use hydrogen.
Cleaning up the factories: It's not just about the cars themselves; Toyota is also working to reduce the environmental impact of their car plants. To make the plants more energy-efficient, Toyota is using renewable energy like solar and wind power, and coming up with smarter ways to manufacture cars that use less energy and resources.Resource recycling and reusing: Toyota is serious about reducing waste and making sure materials get reused and recycled as much as possible throughout a car's entire life – from when it's made to when it's eventually taken off the road. The company wants to create a "closed-loop" system, to ensure that nothing goes to waste.Saving water: Conserving water resources is a key priority, so the company is working on using less water in their manufacturing processes and supporting water conservation efforts in the communities where it operates.Building a recycling-based society: Toyota wants to help create a society where recycling is the norm and resources are used responsibly, contributing to a more sustainable future.Living in harmony with nature: This is about protecting biodiversity and making sure that Toyota's activities do not harm natural habitats, supporting projects that conserve biodiversity and promote a harmonious coexistence with the environment.
The Threads of the Future?
Toyota is demonstrating that these commitments are genuine, by actively implementing them using the huge resources at its disposal, being one of the world's largest and most technologically advanced companies. When speaking about some of the most striking achievements, one cannot help but mention the Woven City – a real test track for the future. Just weeks ago Toyota announced that the first stage of this project, costing over 10 billion dollars, was completed.
At the foot of the iconic Mount Fuji, Toyota has been building not another factory, but a city, or rather a "living laboratory" called Woven City, an experiment designed to test cutting-edge technologies in a real-world environment. The city is situated at the former site of Toyota’s Higashi-Fuji Plant in Susono, Shizuoka Prefecture. The project is designed by Danish architect Bjarke Ingels, known for his futuristic designs. It promises to address pressing urban and environmental challenges like pollution and traffic congestion.
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| Akio Toyoda at CES 2025. Photo credit: Toyota |
Now, Toyota is ready to start moving people in, and the first residents of the fantastic city will arrive in fall 2025. Who will live in this futuristic enclave?
Akio Toyoda said: “This year, residents will begin moving in…as we slowly bring our Woven City to life. As each phase is complete, our population will eventually grow to around 2,000 people and will include: Toyota employees and their families, retired people, retailers, visiting scientists, industry partners, entrepreneurs, academics… and of course…their pets!”
Announced in 2021, Woven City is envisioned as a fully connected ecosystem powered by hydrogen, where autonomous vehicles navigate streets woven with three distinct types of roadways: one for faster vehicles, one for slower personal mobility devices, and one for pedestrians. Homes will be equipped with smart sensors and robotics, collecting data on everything from residents' health to energy consumption. It is a vision of a data-driven future, a showcase for Toyota's ambitious commitments.
“Woven City is a place where people can invent and develop all kinds of new products and ideas. It’s a living laboratory where the residents are willing participants, giving inventors the opportunity to freely test their ideas in a secure, real-life setting,” – explained Mr. Toyoda.
Through phase 2 and later development, Toyota intends to create a sustainable community for up to 2,000 year-round residents, with sufficient housing and facilities to accommodate them. Utilities will be powered by the company's hydrogen fuel cell technology. Public access is planned for 2026.
Meanwhile in South Caucasus
And what about the South Caucasus region? This region, which includes Georgia, Armenia, and Azerbaijan, faces unique environmental challenges such as air pollution and the effects of resource extraction.
Toyota leads the market in Georgia, holding approximately a 30 percent share, and is also a prominent brand in Armenia and Azerbaijan. In this mountainous region, SUVs like the Land Cruiser, Prado, and RAV4 are particularly popular. According to market research by TBC Capital, the share of electric and hybrid cars increased in 2024, coinciding with a decline in diesel and gasoline-powered vehicles.
Toyota Caucasus faces specific considerations in this market. One major issue is infrastructure: the network of charging stations for electric vehicles is still developing, which poses a challenge to the widespread adoption of battery electric vehicles and plug-in hybrid electric vehicles. Furthermore, although awareness of environmental issues is growing, the demand for hybrid and electric vehicles is largely influenced by affordability. The regulatory framework for emissions and incentives for green vehicles varies across the three countries, creating a complex operating environment.
Koji Matsuno of Toyota Caucasus noted that “in Georgia the main issue is actually the age” of the vehicles. Currently, only 8 percent of units in operation are under 10 years old, while nearly 50 percent of all cars on the road are over 20 years old.
It is no surprise that the Toyota Prius has become the vehicle of choice in the South Caucasus, especially as a taxi. Launched in 1997, the Prius was the first mass-produced hybrid car, marking a pivotal moment in the automotive industry by demonstrating the viability of hybrid technology for everyday use. Through the Prius, Toyota popularized the concept of fuel-efficient and environmentally friendly vehicles, influencing the automotive industry's direction toward greater sustainability.
More Technology to Come
Takeshi Uchiyamada, Chairman of Toyota Motor, is recognized as the "father of the Prius" for his pivotal role in developing the world's best-selling hybrid electric vehicle. He stated: “Some people say hybrid vehicles, such as the Prius, are only a bridge to the future... but we think it could be a long bridge and a very sturdy one. There are many more gains we can achieve with hybrids.”
Toyota continues to innovate with the Prius, introducing plug-in hybrid versions (Prius Prime) that provide greater fuel efficiency and the ability to drive short distances using electric power alone. The research and development of solid-state batteries, which promise higher energy density and improved safety, is another key focus area for the company.
In 2023, the Prius Prime featured a solar battery roof that can generate approximately 4 kilometers of electric range each day. While driving, the solar roof can power the air conditioning and other equipment, which helps conserve the hybrid system's energy. However, its effectiveness is greater when the car is parked, as it can recharge the battery. This could be particularly beneficial in sunny regions like California and possibly the Caucasus.
Toyota has also been a leader in the development of hydrogen-powered vehicles, concentrating on both fuel cell electric vehicles (FCEVs) and hydrogen combustion engines. The Toyota Mirai, a flagship FCEV, generates electricity from hydrogen, emitting only water vapor. In 2024, the Mirai received updates, including enhanced safety features and driving assistance.
The hydrogen combustion engine presents another solution to environmental challenges. Unlike electric vehicles, these vehicles use hydrogen to power an internal combustion engine, making them closer to traditional engine systems. Toyota's hydrogen combustion system employs a modified 1.6-liter three-cylinder turbo engine, initially developed for the GR Corolla, which incorporates high-pressure hydrogen direct injection technology. The Corolla Cross H2 Concept, unveiled in 2022, features an adapted version of this engine designed to burn hydrogen, leveraging the expertise in hydrogen tank technology from the Mirai.
One of the latest technological achievements dates back to November 2024, when Toyota introduced a self-pressurizing liquid hydrogen system that maintains hydrogen at -253°C to prevent boiling. This system effectively tackles key challenges associated with liquid hydrogen storage.
It is worth noting that while Toyota Caucasus is actively committed to promoting sustainability and innovative mobility, these specific models and technologies, such as the Prius Prime and hydrogen-powered vehicles, are not part of the current lineup available in the region. However, Toyota Caucasus remains aligned with the global vision of advancing eco-friendly and future-oriented automotive solutions.
Weaving the Thread All the Way to the Caucasus
Regarding the Caucasus region, Koji Matsuno emphasized, “We believe that switching to HEV technologies is the first, but vital, step toward eco-sustainability in the region.”
Despite many challenges, Toyota Caucasus actively drives sustainable transportation in the region. It brings hybrid and electric vehicles to the market and shows people what they can do to reduce emissions. Toyota is educating consumers about the benefits of green tech and promoting sustainable driving practices.
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| Solar panels on Toyota Avchala warehouse |
The transition to sustainable transportation is a global effort, and Toyota is committed to taking a leading role. As Matsuno expresses, “We focus on creating ever better cars that enable people to live cleaner, safer, and less stressful lives.”
And what if some of our readers in the Caucasus would not like to wait for the future to come, and would want to become a resident of Woven City now? This isn’t impossible! Just check the construction progress of Woven City on its website, where it states, “Information about residency will be announced on the website once the process has been finalized.”
Or, order now a new HEV for yourself.
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