Toyota Sounds the Alarm Over California’s EV Mandates, ‘Impossible’

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Toyota Motor Company has raised alarms about California’s upcoming electric vehicle mandates, warning they are unattainable and could restrict consumer options in several states. With strict zero-emission vehicle requirements set to begin next year, the automaker cautions that the industry may not be prepared to meet these ambitious goals.

Key Facts:

– California’s “Advanced Clean Cars II” regulations demand that 35% of 2026 model-year vehicles be zero-emission.
– Toyota’s COO Jack Hollis stated achieving these mandates is “impossible” due to low consumer demand.
– Twelve states and Washington, D.C., have adopted California’s EV rules, some starting in 2027.
– Only California, Colorado, and Washington have EV sales nearing 20%; the national average is just 9%.
– Toyota advocates for a single national standard that is achievable for automakers and consumers.

The Rest of The Story:

Toyota’s Chief Operating Officer, Jack Hollis, expressed serious concerns about California’s electric vehicle (EV) mandates during a recent virtual media roundtable.

The regulations, part of the California Air Resources Board’s “Advanced Clean Cars II,” require that 35% of 2026 model-year vehicles be zero-emission.

This includes battery-electric, fuel cell, and certain plug-in hybrid models. Hollis emphasized that no forecasts, whether governmental or private, suggest these targets are achievable, mainly due to insufficient consumer demand.

According to J.D. Power, most states are far from meeting these mandates. While California, Colorado, and Washington have EV sales approaching 20%, other states lag significantly behind.

The national average for EV and plug-in hybrid sales stands at only 9% through October.

Hollis warned that if these mandates remain unchanged, they could lead to market distortions, forcing automakers to disproportionately supply electrified vehicles to compliant states and limiting choices elsewhere.

Toyota, along with other automakers, prefers a unified national standard that is realistic and attainable.

Hollis expressed hope that federal and state agencies could collaborate with the auto industry to establish achievable goals, rather than imposing regulations that might disrupt the market and constrain consumer options.

Commentary:

Toyota’s stance highlights a critical issue: California’s EV mandates appear to be based more on aspiration than on current technological and market realities.

Expecting over a third of new vehicles to be zero-emission by next year overlooks challenges like infrastructure limitations and consumer readiness.

With national EV sales averaging just 9%, these mandates set a bar that is presently out of reach.

It’s not the government’s role to dictate the pace of innovation, especially when such directives can hinder industry growth and limit consumer freedom.

Progress in technology should be driven by market demand and practical advancements, not by regulatory overreach.

Policies need to be grounded in reality to foster genuine progress without imposing undue burdens on manufacturers or consumers.

The Bottom Line:

California’s aggressive EV mandates are causing concern among automakers who view the targets as unfeasible under current conditions.

Without adjustments, these regulations risk distorting the automotive market and reducing choices for consumers.

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A cooperative effort to set realistic and achievable goals would better align industry capabilities with environmental objectives.