On January 30, 2024, a sign was hung outside a Toyota Motor Corporation dealership in Tokyo, Japan.
Tomohiro Ohsumi | Getty Images News | Getty Images
Detroit- Toyota Motor Alarm bells were sounded on Friday that a California-led electric vehicle mandate set to begin next year was “impossible” to be met and would result in fewer customer options in several states if not changed.
California Air Resources Board Current Requirements “Advanced Clean Vehicle II” Regulations require 35% of 2026 vehicles (due to be rolled out starting next year) to be zero-emission vehicles (ZEV). Under the regulations, battery electric vehicles, fuel cell vehicles and to some extent plug-in hybrid vehicles all meet zero-emission standards.
“I haven’t seen anyone’s projections … anywhere, whether government or private, telling us that this number is achievable. At this point, it looks impossible,” Jack HollisToyota Motor North America chief operating officer said during a virtual media roundtable on Friday. “The demand isn’t there. It’s going to limit customers’ choices in the vehicles they want.”
California Air Resources Board 12 states reported and Washington, D.C. have already adopted these rules. About half do so starting with the 2027 model year. The electric vehicle mandate is part of CARB’s Advanced Clean Vehicle Regulations, which require 100% of new vehicle sales in California Zero-emission vehicles by 2035.
As of this year, no state has complied with the electric vehicle mandate, JD Power said. This year, only California (27%), Colorado (22%) and Washington state (20%) have at least 20% of their retail sales being electric vehicles or plug-in hybrids. Other states, such as New York (12%), New Mexico (5%) and Rhode Island (9%), are far from compliant.
JD Power said on Friday that as of October, the average adoption rate of electric vehicles/plug-in hybrids in retail sales nationwide was just 9%.
Hollis said if the rules remain unchanged, they will lead to “unnatural behavior” in the auto industry, which is already happening with some automakers that are supplying unqualified products to states that agree to the rules. Proportion of electric models.
“It’s going to distort the industry. It’s going to distort the business. Why? Because it’s not natural to what the current market wants,” said Hollis, a longtime auto industry executive.
Several auto industry insiders previously told CNBC that no matter who wins this year’s election, the issue of electric vehicle authorization will need to be resolved.
The California Air Resources Board did not immediately respond to a request for comment.
A legal battle ensued during President-elect Donald Trump’s first term to roll back states’ ability to set their own emissions standards. Some officials expect Trump to push for the measure again when he returns to the White House.
Hollis said he’s “hopeful that doesn’t happen this time” and that states, the federal government and the auto industry can come to a resolution. He also said Toyota would prefer a national standard – a view shared previously by many automakers.
“We always want a rule that covers all 50 states because then we can treat all customers equally and fairly, all dealers, no matter what,” Hollis said. “Our hope is that California and (environmental protection) Even if it’s a push, even if it’s a range, it’s an impossible stage at this point.
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