Toyota has expressed concerns about California's electric vehicle (EV) mandates, stating that they are impossible to meet.
The mandates require that 35% of vehicles for the 2026 model year be zero-emission vehicles (ZEVs).
Toyota argues that there is no credible forecast indicating that such a target is achievable due to a lack of consumer demand.
Currently, no states are meeting the EV mandate, with California, Colorado, and Washington achieving only 27%, 22%, and 20% of retail sales being EVs or plug-in hybrids, respectively.
Toyota warns that if the mandates remain unchanged, it could lead to distortions in the market and an imbalance that does not reflect current consumer demand.
The automotive industry is calling for a unified national standard to treat all customers and dealers equitably across the United States.
The political landscape surrounding emissions standards is also evolving, with expectations that the incoming administration may reignite legal battles over states' rights to set their own emissions regulations.
Toyota hopes for collaboration among states, the federal government, and the automotive industry to find a workable solution.
The push for electrification is reshaping the entire industry landscape, and automakers are being forced to adapt quickly. The challenge lies in balancing regulatory ambitions with consumer demand and technological readiness.