Toyota Warns of the Challenges Created by the ZEV Mandate
Toyota has just one EV in its line-up but will add five more by 2026
The ZEV mandate implemented by the UK government poses a significant challenge that could impact the entire automotive industry, according to Yoshihiro Nakata, the President and CEO of Toyota Europe. Speaking at Goodwood’s Festival of Speed, Nakata emphasized the need for coordinated action between car manufacturers and lawmakers to find workable solutions to meet the demanding targets set by the mandate.
The ZEV Mandate and its Targets
The ZEV mandate requires car makers to ensure that electric vehicle (EV) sales account for at least 22% of their overall volumes, with the percentage increasing each year. Failure to meet these targets results in fines of £15,000 per non-compliant vehicle. Nakata acknowledged that Toyota’s current lineup, which includes only one pure EV, the bZ4x, is a concern. However, he assured that Toyota is committed to offering a range of EVs to provide customers with more options.
Hybrids as an Effective Contribution
While Toyota focuses heavily on selling pure and plug-in hybrids, Nakata believes that these models continue to make a significant contribution to reducing CO2 levels. He emphasized that real customer demand is the driving force behind Toyota’s decisions, suggesting that hybrid models are currently more preferred by buyers.
Toyota’s partnership with Mazda and Subaru further supports the focus on hybrids. The alliance aims to optimize combustion engines by incorporating more efficient electric motors and batteries, as well as exploring the use of alternative fuels. The decision to not solely concentrate on EVs is driven by an understanding of customers’ diverse lifestyles and a belief in the future of internal combustion engines.
Toyota’s Commitment to ZEV Mandate Targets
Despite Toyota’s limited EV lineup, Scott Thompson, the Managing Director and President of Toyota GB, confirmed that the company is on track to meet the ZEV mandate targets for this year. While Thompson did not provide specific details about next year’s strategy, he expressed confidence in Toyota’s multi-path philosophy for the future. Reports suggest that Toyota plans to launch five new EVs by 2026, including the already revealed Urban Crossover concept.
Impact of Import Tariffs on Chinese-built EVs
Nakata refrained from directly supporting or criticizing the EU’s decision to increase import tariffs on Chinese-built EVs. However, he believes that the move will provide an advantage to Toyota in the short term. He anticipates that Chinese companies will respond by establishing European factories to compete effectively. Nakata emphasized the importance of building brand strength and producing more competitive products through innovation, driving pleasure, and advanced technology.
Toyota remains committed to its core values of providing happiness and mobility for all while taking a visionary approach. The company’s dedication is exemplified by its continued production of Corolla hybrids at the Burnaston plant in the UK, which has been operating for 32 years.
