Toyota on Nov. 8 described California’s forthcoming zero-emission vehicle (ZEV) mandates as “impossible” to meet, raising concerns about consumer choice and market distortions. The regulations, led by the California Air Resources Board (CARB), require 35% of 2026 model-year vehicles sold to be ZEVs, including battery-electric, fuel cell and some plug-in hybrid electric vehicles (PHEVs).
Jack Hollis, chief operating officer of Toyota Motor North America, emphasized the challenge during a virtual media roundtable.
“I have not seen a forecast by anyone … government or private, anywhere that has told us that that number is achievable,” Hollis said. “Demand isn’t there. It’s going to limit a customer’s choice of the vehicles they want.”
According to J.D. Power, no state is currently meeting the mandate. While California (27%), Colorado (22%) and Washington (20%) lead in EV and PHEV retail sales, the national average remains at just 9% through October. States like New York (12%) and New Mexico (5%) lag significantly behind.
Hollis expressed concern that, without changes, the mandates could force automakers into "unnatural acts," such as disproportionately supplying compliant states with electrified models. “It’s going to distort the industry. It’s going to distort the business,” Hollis said.
CARB’s Advanced Clean Cars II regulations are part of a broader effort to ensure 100% of new vehicle sales in California are zero-emission by 2035. Twelve states and Washington, D.C., have adopted similar rules, with some delaying implementation until the 2027 model year.
Toyota and other automakers have called for a unified national emissions standard to prevent discrepancies between state and federal rules. “We would always want a 50-state rule … to treat all customers, all dealers, equally,” Hollis said.
As the industry grapples with these requirements, Hollis remains hopeful for collaboration between the states, federal government, and automakers. “Even if it’s a push, even if it’s a reach, but at this point, it’s an impossible stage,” he concluded.
