DETROIT — Toyota Motor raised concerns on Friday regarding the electric vehicle (EV) mandates led by California that are scheduled to take effect next year, labeling them as “impossible” to achieve. The company cautioned that if these regulations are not revised, they could result in reduced consumer options across several states.
Under the California Air Resources Board’s “Advanced Clean Cars II” regulations, 35% of vehicles for the 2026 model year, which will begin to roll out next year, must be zero-emission vehicles (ZEV). This category includes battery-electric vehicles, fuel cell vehicles, and, to some extent, plug-in hybrid electric vehicles.
“I have not seen a forecast by anyone — government or private — that suggests this number is achievable. At this point, it looks impossible,” said Jack Hollis, chief operating officer of Toyota Motor North America, during a virtual media roundtable on Friday. He emphasized that the current demand for such vehicles is insufficient and warned that the mandates would limit the variety of vehicles available to consumers.
The California Air Resources Board reports that 12 states and Washington, D.C. have adopted these regulations, with roughly half of those states implementing them starting with the 2027 model year. These EV mandates are part of CARB’s broader goal to ensure that 100% of new vehicle sales in California are zero-emission models by 2035.
According to J.D. Power, no states are currently in compliance with the EV mandate. Only California (27%), Colorado (22%), and Washington (20%) have reached at least 20% of retail sales being EVs or plug-in hybrids this year. Other states, such as New York (12%), New Mexico (5%), and Rhode Island (9%), are significantly below compliance levels.
The national average for EV and plug-in hybrid adoption in retail sales stands at just 9% through October, J.D. Power reported.
Hollis warned that if the mandates remain unchanged, it would lead to “unnatural acts” within the automotive industry, where manufacturers may disproportionately supply electrified models to states complying with the regulations.
“It’s going to distort the industry and the business because it’s not aligned with current market demand,” Hollis explained, drawing on his extensive experience in the automotive sector.
Several industry insiders have previously indicated to CNBC that the challenges posed by the EV mandates need to be addressed, regardless of the outcomes of recent elections.
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