2012 ZEV Amendments Benefits of Small Battery PHEVs – Toyota January 2012

Battery Electric Vehicle (BEV) [ RAV4-EV ] Plug-in Hybrid Electric Vehicle (PHEV) [ Prius PHEV ] Battery Electric Vehicle (BEV) [ FT-EV ] FCV-R ( FCV-R (December 2011Tokyo Motor Show) Hybrid Electric Vehicle (HEV) [ Prius ] Toyota’s Advanced Technology Portfolio

3 Daily Travel Distance in 5 Mile Increments Cumulative % of Daily Travel Distance Data Source: U.S. Department of Transportation, Federal Highway Administration, 2009 National Household Travel Survey. URL: Cumulative % of Daily Energy Use 15 mile PHEV 35 mile PHEV 73 mile BEV Total Sample Size: 81,096 Vehicles (Vehicle Type 1 - Automobile/Car/Station Wagon) Daily Travel Distance in the US

4 Daily Travel Distance in 5 Mile Increments Data Source: U.S. Department of Transportation, Federal Highway Administration, 2009 National Household Travel Survey. URL: Percentage of Reports Percent of Drivers vs. Daily Travel Distance

5 Daily Travel Distance in 5 Mile Increments Data Source: U.S. Department of Transportation, Federal Highway Administration, 2009 National Household Travel Survey. URL: Percent Total Gasoline Consumption Baseline Consumption vs. Daily Travel Distance Daily Travel Distance in 5 Mile Increments

6 Data Source: U.S. Department of Transportation, Federal Highway Administration, 2009 National Household Travel Survey. URL: Daily Travel Distance in 5 Mile Increments 61% Savings From EV No Fuel Savings From HV 61% Savings Total EV Data Assumed Electric Range (mi)73 Gas-mode Fuel Economy (mpg)NA Percent Total Gasoline Consumption EV Analysis

7 Data Source: U.S. Department of Transportation, Federal Highway Administration, 2009 National Household Travel Survey. URL: Daily Travel Distance in 5 Mile Increments Percent Total Gasoline Consumption PHEV Data Assumed Electric Range (mi)35 Gas-mode Fuel Economy (mpg)37 62% Savings From EV 8% Savings From HV 70% Savings Total 35 Mile PHEV Analysis

8 Percent Total Gasoline Consumption Data Source: U.S. Department of Transportation, Federal Highway Administration, 2009 National Household Travel Survey. URL: Daily Travel Distance in 5 Mile Increments PHEV Data Assumed Electric Range (mi)15 Gas-mode Fuel Economy (mpg)49 36% Savings From EV 26% Savings From HV 62% Savings Total 15 Mile PHEV Analysis

73 mile EV 35 mile PHEV 15 mile PHEV Comment 1. Coverage of Daily Travel Distance For an EV, 2 nd vehicle needed for travel > EV range, or widespread fast charging infrastructure 2. Gasoline Saved (100% of Gasoline used on all DTDs up to 600 miles) 15 mile PHEV can potentially save significant percentages of gasoline, similar to EVs and 35 mile PHEVs. 3. Relative Battery Cost Incentives reduce customer costs, but not total cost; Offset ratio varies by battery size 100% 36% 62% 5.5x 1x 3.6x 68% 62% 70% HV Conclusions 90% 61%

Benefits of Small Battery PHEVs PHEVs can offer significant fuel savings (and vehicle GHG reductions), since they can be used for all daily driving without the need for a second vehicle for longer drive distances. Shorter range hybrid technology with efficient blended architecture can exhibit similar gasoline savings as more expensive large battery Plug-in Electric vehicles (EV and PHEV) Smaller batteries are more fully utilized and thus the amount of EV-driving per unit of capacity(cost) is higher than for larger batteries.