In an interview with Automotive News, Toyota CEO Ted Ogawa shared his belief that electric vehicles (EVs) would only constitute 30% of the US new-vehicle market by 2030. This projection falls significantly short of the target set by the US Environmental Protection Agency (EPA) last year, which aimed for more than half of new cars to be battery electric vehicles (BEVs) by the same year.

Ogawa explained that Toyota, as the leading automaker in hybrid technology, is more inclined to prioritize customer demand for various degrees of "electrification," primarily through hybrid vehicles with gas-burning engines. The company is currently investing $13.9 million in a battery complex in North Carolina, which will be used in the production of EVs and hybrids sold in North America. With an investment of approximately $17 billion in US manufacturing operations since 2021, Toyota has primarily focused on hybrid vehicles.

While acknowledging the EPA regulations, Ogawa stated that his company would consider purchasing credits instead of investing directly in BEVs to meet the emissions regulations. He emphasized that "wasted investment is worse than credit purchase." However, he also acknowledged that Toyota is making efforts to catch up with competitors in terms of EV products and the surrounding ecosystem, such as home charging and energy management.

Toyota, known for its strong emphasis on hybrid vehicles, faced criticism from advocacy groups for continuing to sell internal combustion engine (ICE) and hybrid cars beyond 2030. The automaker has also drawn attention for its marketing approach, calling its hybrid models "electrified," which some argue confuses consumers.

Ogawa discussed concerns regarding Chinese automakers entering the US market through Mexico, potentially offering lower-priced vehicles that could undercut other automakers. However, he expressed belief that China would eventually face similar conditions as other automakers in North America, such as increasing labor and material costs.

The transition to EVs is anticipated to accelerate once charging infrastructure adequately supports the increased demand. As seen in Norway, where government subsidies have made EVs cost-competitive with ICE cars, the shift towards electric mobility can occur rapidly. Toyota's cautious approach toward EVs may pose long-term risks, potentially impacting its competitiveness and relevance in the evolving automotive landscape.

The CEO's remarks highlight Toyota's commitment to hybrid technology and its skepticism about the rapid adoption of solely electric vehicles. As the industry undergoes significant changes, it remains to be seen how Toyota will navigate the shifting demands and regulatory landscape.