Toyota’s CEO makes a bold statement, predicting that electric vehicles (EVs) will account for just 30% of new vehicle sales in the US by 2030, well below the Environmental Protection Agency’s (EPA) ambitious target of 50%. Toyota’s CEO claims that as the company’s biggest proponent of hybrids, they are better placed to simply buy credits to close the EPA loophole rather than “wasting” money on battery-electric vehicles.
Toyota’s CEO, Ted Ogawa, recently shared his vision for the company’s future in an interview, stating that they plan to align with buyer demand by offering varying levels of electrification, primarily through hybrid models combining electric and gasoline-powered engines.
The company is currently building a $13.9 million battery facility in North Carolina to support its electric vehicles (EVs) and hybrid offerings in North America. Since 2021, Toyota has invested approximately $17 billion in its US manufacturing operations to produce a significant proportion of hybrid vehicles.
The Environmental Protection Agency (EPA) is reevaluating the regulatory timeline. Notwithstanding this, we must again start by considering what the customer’s requirements should be. According to Ogawa, the 2030 regulations require that more than half of the new-car market should consist of battery-electric vehicles (BEVs), but our current plan is merely around 30%. “While adhering to regulatory requirements, prioritizing customer needs takes precedence.”
Closing the gap between proposed light-vehicle emissions laws and what Toyota sells? “That’s a tricky query. Regulators insist on creating a comprehensive system akin to a credit score for this purpose. “It’s difficult to admit, but it’s not getting any better.”
“Worse than a poor credit score is the misuse of funds,” he stated.
Despite being one of the world’s leading automakers, Toyota’s electric vehicle (EV) sales remained a mere fraction of its overall volume last year, with less than 1% of total gross sales coming from these environmentally friendly vehicles. “After all, we’re lagging behind in checking the Tesla battery’s status,” he acknowledged candidly.” Despite this, our progress is tangible, encompassing not just the electric vehicle itself but also the broader ecoystem of home charging and energy management.
Electrek’s Take
In the end, nothing about this stands out as remarkable. The model has been a stalwart advocate for hybrid vehicles, exclusively offering one electric vehicle per each of its two US manufacturing divisions: the Toyota bZ4X and Lexus RZ450e crossover models. Despite praise for its enthusiasm towards hybrids, the organization’s persistence in promoting internal combustion engine (ICE) and hybrid vehicles beyond 2030 has attracted significant backlash from advocacy groups, including Public Citizen. Toyota’s legacy of environmental disingenuousness extends to its marketing and advertising strategies, where it misleadingly labels its six hybrid models as “electric,” thereby perplexing consumers.
Toyota keeps a watchful eye on Chinese automaker BYD’s expansion into the US market via Mexico, with concerns echoing those of most other American-based manufacturers. Despite the concerns, the risk remains that low-cost Chinese vehicles could disrupt the market by offering more affordable options, a scenario that has already played out in Mexico.
The global market’s turmoil, combined with the recently imposed tariffs, has had a profound impact on their product in Mexico, as Ogawa warned. “While China has taken note of the rising labour costs and material prices alongside other factors.” So that sometimes they will be in a similar situation like different automakers in North America.
While our competitors may worry about competing with Chinese imports in the US market, we’re confident that our superior products will continue to set us apart. Despite these efforts, it remains unclear how to sustain competitiveness through effective utilization of the MSRP or value proposition.
