North American Toyota CEO Ted Ogawa has told Automotive News that EVs will make up just 30% of the US market in 2030 and that Toyota will buy credits to make up any shortfalls imposed by the EPA (Environmental Protection Agency).
“I know that EPA is now reconsidering what the regulation level should be,” said Ogawa during an interview with Automotive News.
“However, again, our starting point is what the customer demand should be. So, for example, 2030 regulations said the new-car market, more than half of it should be BEV, but our current plan is like 30%”
“We are respecting the regulation, but more important is customer demand.” said Ogawa.
Regardless of what the regulation is, its looking like EV uptake will be well above 50% by 2030. A new report from the IEA says EVs already made up 20% of all new vehicle sales in 2023, up from 14% in 2022, suggesting global uptake will soar past 50% well before 2030.
“If customer demand is at 30% and the regulation is 50%, how do you fill that gap?” asked Automotive News.
“Regulation wise, realistically we have to prepare something about credit purchase.” responded Ogawa.
“Wasted investment [on electric vehicles] is worse than the credit purchase” said Ogawa referring to carbon credits that Toyota would have to buy from other car makers if it fails to meet the fleet efficiency regulations.
Toyota CEO says it’s better to buy credits than “waste” money on EV investments. https://t.co/cerMMIhhaB
— Sawyer Merritt (@SawyerMerritt) March 1, 2024
North American CEO’s comments contradict Toyota’s Australian head of sales
Ogawa’s comments suggesting Toyota would buy credits to make up its emissions gap are in contrast to recent comments from Toyota Australia’s head of sales Sean Hanley.
“I can tell you, from Toyota’s perspective, we’re not buying credits,” said Hanley.
“We’d pay a fine, we’d pass it on.”
😂 Dear journalists writing about the NVES: No, the Assistant (to the) Branch Manager from Toyota’s Australia office doesn’t get to make this call. pic.twitter.com/s3KRa6jkfS
— Behyad Jafari ⚡🚘 (@BJafari) February 28, 2024
Claims that Toyota would rather pay hefty fines than comply with Australia’s New Vehicle Efficiency Standard (NVES) play into a recent fear campaign waged by the fossil car lobby that the NVES will dramatically drive up vehicle prices in Australia. A claim that has been widely rejected.
Daniel Bleakley is a clean technology researcher and advocate with a background in engineering and business. He has a strong interest in electric vehicles, renewable energy, manufacturing and public policy.
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