Toyota Motor Corp. recently raised concerns about California-led electric vehicle mandates, warning that they are “impossible” to meet and could restrict customer choice in several states. The mandates, under the California Air Resources Board’s “Advanced Clean Cars II” regulations, require 35% of 2026 model-year vehicles to be zero-emission vehicles, such as battery-electric, fuel cell, and plug-in hybrid electric vehicles.
Jack Hollis, chief operating officer of Toyota Motor North America, expressed skepticism about achieving the mandated targets, citing a lack of consumer demand. He emphasized that the current regulations could limit the availability of vehicles desired by customers. Additionally, J.D. Power reported that no states are fully compliant with the EV mandate, with only California, Colorado, and Washington reaching at least 20% of retail sales being EVs or PHEVs.
Hollis highlighted the potential industry distortions resulting from the mandates, as automakers would have to supply disproportionate amounts of electrified models to compliant states. He urged for a national standard to ensure fairness and consistency across all states. While some anticipate a push to revoke states’ emissions standards by President-elect Donald Trump, Hollis expressed hope for a resolution between the states, federal government, and auto industry.
The implications of the EV mandates extend beyond regulatory compliance, impacting consumer choice, industry dynamics, and market competitiveness. The issue has garnered attention from various stakeholders, including industry experts and policymakers, who recognize the need for a balanced approach that considers both environmental goals and market realities.
As the debate continues, stakeholders are likely to engage in further discussions to address the challenges posed by the EV mandates and work towards a sustainable solution. Ultimately, the outcome of this debate will shape the future landscape of the automotive industry and influence the adoption of electric vehicles in the United States.
