Last year, the US Environmental Protection Agency (EPA) set a target of 60% electrification by 2030, although many believe that figure could be adjusted down to 54%.
However, according to a recent statement by Ted Ogawa, CEO of Toyota North America, he believes that number will be much lower, with electric vehicles (EVs) accounting for only about 30% of the new car market in the US, half of EPA’s target.
As a pioneer in hybrid vehicle production, Toyota believes that they can choose to purchase carbon credits to comply with EPA regulations instead of investing “wastefully” in battery electric vehicles (BEVs).
In an interview with Automotive News, CEO Ted Ogawa emphasized that the company will prioritize meeting customer demand, with a focus on electrification solutions, especially hybrid vehicles with internal combustion engines.
“I understand that the EPA is considering revising the regulations. However, once again, our starting point is customer demand. For example, the 2030 regulation states that more than half of the new vehicle market should be BEVs, but our current plan is around 30%.”
“We respect the regulations, but what’s more important is customer demand,” he emphasized.
Toyota is currently building a $13.9 million battery manufacturing facility in North Carolina for EVs and hybrids sold in North America. Currently, the company only offers two models: the Toyota bZ4X and the Lexus RZ450e.
Since 2021, Toyota’s total investment in manufacturing operations in the US has reached around $17 billion, with a focus on electric and hybrid vehicles.
When asked about how Toyota plans to bridge the gap between proposed vehicle emissions regulations and its actual products, Ogawa admits that it requires something like buying credits, not an easy choice but still better than investing without results.
He added, “Wasting investment is even worse than buying credits.”
Toyota is currently one of the best-selling automakers, with most of its sales coming from hybrid vehicles rather than electric vehicles, which account for less than 1% of total annual sales.
Toyota’s CEO also acknowledges that the Japanese automaker may be trailing behind brands like Tesla but asserts that the company is making efforts to catch up, not only in terms of products but also the entire ecosystem surrounding electric vehicles, including home charging and energy management.
He also believes that Toyota’s vehicles are better than those from China, but admits that the company cannot compete on price.
Reference: Carscoops
