The Impending Electric Vehicle Mandate Crisis: Toyota Speaks Out
In a recent virtual media roundtable, Jack Hollis, the Chief Operating Officer of Toyota Motor North America, sounded the alarm about the upcoming electric vehicle mandates set to take effect in California next year. According to the California Air Resources Board’s "Advanced Clean Cars II" regulations, 35% of 2026 model-year vehicles must be zero-emission vehicles (ZEV), which include battery-electric, fuel cell, and plug-in hybrid electric vehicles.
Hollis expressed serious doubts about the feasibility of meeting this requirement, stating, "I have not seen a forecast by anyone… government or private, anywhere that has told us that that number is achievable." He emphasized that the lack of consumer demand for electric vehicles could severely limit customers’ choices in several states and negatively impact the automotive industry.
It is crucial to note that 12 states and Washington, D.C. have already adopted these regulations, with California aiming for 100% of new vehicle sales to be ZEVs by 2035. However, data from J.D. Power indicates that no states are currently in full compliance with the EV mandate, with only California, Colorado, and Washington showing notable adoption rates of EVs and PHEVs.
Hollis also highlighted the potential for the mandates to distort the automotive industry by creating an imbalance in the supply of electrified models to compliant states. He emphasized the need for a national standard to ensure a fair and equal treatment of customers and dealers across all states.
With the future of these regulations uncertain, it is essential for stakeholders, including state governments, federal authorities, and automakers, to collaborate and find a viable solution that balances environmental goals with market realities. Toyota, like many other automakers, advocates for a unified national standard that is both ambitious yet achievable.
As the industry navigates this complex issue, it is crucial to stay informed and prepared for potential shifts in regulations and market dynamics. Stay tuned to Extreme Investor Network for more updates and insights on the evolving landscape of the automotive industry.