Toyota exec. criticizes California-led electric vehicle 'mandates'

Toyota has issued a staunch warning regarding the California-led EV mandates — calling them “impossible” to meet.

The automaker also said the measures — which are scheduled to go into effect next year under the California Air Resources Board’s “Advanced Clean Cars II” — could minimize the options car buyers have in several states if it’s not changed. 

Digging in: Once touted as a pivotal step in efforts to address environmental concerns, the EV mandates have become a point of contention for many in the auto industry amid softening consumer interests in electric vehicles and the other challenges associated with wider adoption.

• Currently, the mandate requires that 35% of 2026 model year vehicles, which will be introduced next year, to be zero emissions vehicles.

• Qualifying zero emissions vehicles that meet the regulations include battery electric, fuel cell, and, to some degree, plug-in hybrid electric vehicles. 

• More than 12 states and Washington D.C. have agreed to adopt the measures, with roughly half of the states agreeing to start the mandate with 2027 model year vehicles. 

Digging deeper: A recent J.D. Power report highlights the challenges associated with meeting the 35% mandate target.

• EVs or PHEVs accounted for 27% of retail sales in California, 22% in Colorado, and 20% in Washington.  

• Potential qualifying zero emissions vehicles only accounted for 12% of retail sales in New York, 9% in Rhode Island, and 5% in New Mexico.  

• The national average for EV/PHEV retail sales was only 9% through October, a little over a third of the required zero-emission sales required under the California-led EV mandates. 

Why it matters: As industry concerns about the challenges associated with EV mandates grows, Toyota’s sounding alarm about its inability to meet the requirements could be a tipping point, prompting further action regarding the regulations.

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