Jack Hollis, Toyota’s North American Chief Operating Officer (COO), said that policies surrounding electric vehicles (EVs) are not working with consumer demand.
“The whole EV ecosystem is ahead of the consumer,” Hollis told reporters, Bloomberg reported. “It’s not in alignment with consumers. It’s just not.”
Hollis added that no forecast indicates that some EV mandates are “achievable.” Requirements under the California Air Resources Board’s “Advanced Clean Cars II” regulations, for example, call for 35% of 2026 model-year vehicles to be zero-emission, according to CNBC.
“At this point, it looks impossible. Demand isn’t there. It’s going to limit a customer’s choice of the vehicles they want,” he said.
Hollis emphasized that EV mandates will “distort the industry.”
“It’s going to distort the business. Why? Because it’s unnatural to what the current demand in the marketplace is,” he explained.
Last year, more than 3,800 auto dealers signed an open letter to the Biden administration, writing, “We are deeply committed to the customers we serve and the communities where we operate, which is why we are asking you to slow down your proposed regulations mandating battery electric vehicle (BEV) production and distribution.”
They wrote that throughout 2022, “there was a lot of hope and hype about EVs. Early adopters formed an initial line and were ready to buy these vehicles as soon as we had them to sell. But that enthusiasm has stalled,” the letter added. “Today, the supply of unsold BEVs is surging, as they are not selling nearly as fast as they are arriving at our dealerships — even with deep price cuts, manufacturer incentives, and generous government incentives.”
“With each passing day, it becomes more apparent that this attempted electric vehicle mandate is unrealistic based on current and forecasted customer demand,” the auto dealers added. “Already, electric vehicles are stacking up on our lots which is our best indicator of customer demand in the marketplace.”
