Toyota Motor North America CEO Ted Ogawa projects battery electric vehicles (BEVs) to grab only around 30% of the U.S. new-vehicle market by 2030. This falls short of the Environmental Protection Agency’s 2030 target.
Customer Demand Over Regulation: “We are respecting the regulation, but more important is customer demand,” Ogawa emphasized during an interview with Automotive News.
Toyota intends to mold its strategy according to consumer tastes, he asserted, noting a willingness to purchase credits to satisfy regulatory norms. “Wasted investment is worse than the credit purchase,” Ogawa stressed.
Toyota is currently under scrutiny for its approach of offering various fuel options instead of swiftly transitioning to electric vehicles. In a lecture earlier this year, Toyota Motor Corp Chairman Akio Toyoda remarked that conversion to a battery electric vehicle isn’t the priority. “The enemy is CO2. So, let’s all think about reducing CO2 right away,” he urged.
The Chairman raised concerns regarding restricting transportation options for over a billion global citizens lacking access to electricity. He advocated for a consumer-led decision-making process rather than one influenced by regulations or politics.
Competition Fears From China: Like other U.S. automakers, Toyota is wary of Chinese automakers gaining entry into the American market through Mexico.
Commenting on the competitiveness of Chinese products in Mexico, Ogawa stated, “Their product is so competitive, including the tariffs in Mexico. Our dealers question us daily on how we will compete with China in the U.S. market. Despite this, we offer superior products. Yet, maintaining competitiveness in terms of MSRP remains a mystery.”
At present, Chinese automakers lack a substantial U.S. market presence due to the high tariffs imposed on vehicle imports from China.
However, prominent U.S. automakers have voiced concerns about Chinese EV manufacturers entering the domestic market through neighboring nations like Mexico to bypass the steep tariffs.
Explore more of Benzinga’s Future Of Mobility coverage by following this link.
Further Reading: After Porsche, Ford Reportedly Acquires A Cybertruck At A Substantial Premium; Elon Musk Believes It’s ‘Worth It’
Note: This article was produced in collaboration with Benzinga Neuro and underwent review and publication by Benzinga editors.
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