Toyota Appears to Already Be Walking Back Its 2030 EV Plan

Vice president of sales for Toyota North America believes that the demand isn’t strong enough for EVs to reach the goal of 50% of new car sales being electric by 2030.
Written by Preston Charles
Reviewed by Kathleen Flear
Sep 3, 2022
While every other automaker is declaring that EVs are the way of their future and that the future is nearly upon us,
Toyota
seems to be pumping the brakes on its
EV rhetoric
It’s not that their denying the shifting trend altogether, but rather tempering expectations that the change will happen tomorrow. 
The Biden administration and various environmental groups have pushed for a goal of having EVs make up 50% of new auto sales by 2030, but Jack Hollis, executive vice president of sales at Toyota North America, thinks that’s far-fetched. 

Consumer demand simply isn’t there

Speaking with a group of journalists at the Automotive Press Association, Hollis said the public demand for EVs is insufficient due to their high costs and the lack of infrastructure needed for the new technology. 
According to
Forbes
, EV sales are up by over 75% from last year, but that still only makes up for 5.2% of new vehicle sales. For many buyers, they’re simply too expensive as the
average EV
is now costing over $60,000. 
Hollis mentioned too that the charging infrastructure isn’t ready yet either. Outside of
charging
at your own home, he believes it’s still too challenging to charge your car while on the road.

But what about all of the other EV makes and models?

Without calling out the competition by name, Hollis made reference to the notion that the recent push by other car companies to go more electric has a flaw in its logic.
He said that the bulk of the new EVs being put out by other mass-market brands are either luxury cars or SUVs/pickups that were priced as luxury cars. Yet again, he believes the prices are just too steep for the average consumer. 

The Prius as an example

While Toyota is now notorious for how slow they’re dragging their heels into the EV world, they were the first ones to mass market a very successful hybrid in the
Prius
Other car companies followed suit and also built quality hybrids, but 20 years into their existence, hybrids only account for 10% of total sales. 
Hollis thinks that if hybrids, with their affordability and lack of range anxiety, aren’t performing better than that, then EVs will be just as far if not further behind. In short, he believes the “rhetoric” around EVs is way ahead of the demand. 

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Chubb
ClearCover
CSE
Dairyland
DirectAuto
Elephant Auto Insurance
Kemper
Libertymutual
Gainsco
Mapfre
Mercury Auto
Metromile
Nationwide
Plymouth Rock
Progressive
State Auto
Safeco
Travelers
Metlife
Bristol West

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