Car manufacturers that do not fit into the environmental standards of countries and want to avoid problems with regulators are forced to buy so-called regulatory credits from other companies that meet the requirements — for example, Tesla, which produces only electric cars (Elon Musk’s company earned $9 billion from this).

Toyota’s CEO doesn’t seem to share the public’s enthusiasm for electric cars — he thinks they will make up just 30% of the US new car market in 2030 (about half of what the US Environmental Protection Agency (EPA) aimed to achieve last year).

As the largest hybrid car maker in the auto industry, Toyota prefers to continue buying credits to meet regulatory requirements rather than “spending” money on battery electric vehicles, CEO Ted Ogawa told Automotive News.

“I know the EPA is currently reviewing what the level of regulation should be. However, again our starting point is consumer demand. So, for example, the 2030 regulations state that the majority of the new car market should be BEVs, but our current plan is about 30%,” Ogawa said.

The company is currently building a $13.9 million battery facility in North Carolina that will be used in its electric and hybrid vehicles sold in North America. Since 2021, Toyota has invested about $17 billion in its US manufacturing operations to build mostly hybrids.

Toyota is now one of the most popular automakers, but electric vehicles accounted for less than 1% of total sales last year.

“Of course, compared to Tesla, we are lagging behind. However, we are catching up not only with the product, but also with the BEV ecosystem,” added Ogawa.

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