'People Are Finally Seeing Reality' - Toyota Motor Chair On The Complex Road Of EVs: Report

Akio Toyoda, Chairman of Toyota Motor Corporation TM, reportedly emphasized that achieving carbon neutrality won't be possible with just one solution, given the challenges in the electric vehicle sector, including a noticeable dip in U.S. demand. 

With EV sales losing steam in the U.S. and a noticeable shift of consumers toward hybrid vehicles, Toyoda might be experiencing an "I told you so" moment, according to a news report by The Wall Street Journal. 

"There are many ways to climb the mountain that is achieving carbon neutrality," Toyoda told a small group of reporters at the Japan Mobility Show, the report added.

"I have continued to say what I see as reality," said Toyoda, as noted by The Wall Street Journal. 

In the U.S., a number of dealers have noted that the initial group of consumers open to purchasing an EV seems to have dwindled, and the current potential buyers are being put off primarily due to the "high sticker prices" and the restricted driving range offered by numerous EV models.

"If regulations are created based on ideals, it is regular users who are the ones who suffer," Toyoda added.

The company's TM Lexus has recently debuted the next-generation Battery Electric Vehicle (BEV) concept car LF-ZC, along with the BEV flagship model LF-ZL. This is a part of the forthcoming next-generation Lexus BEV lineup, due for market launch in 2026, and aligns with Toyota's strategic shift towards electric vehicles (EVs), emphasizing battery innovations.

Toyoda highlighted that the concept vehicles presented at the Japan show culminate in Japanese automakers' diligent efforts to partner with battery producers and explore the potential of EVs, the report read. 

He asserted that the prowess of Japan's automotive sector in the EV domain will be rooted in "practical car making over a long period of time and from experiences of failure," the report added.

Now Read: Why Toyota's Australian VP Sees Hybrids As Winning Choice Over BEVs Despite Tesla Model Y Popularity

Price Action: TM shares are trading lower by 1.08% in the premarket to $173.28 on the last check Thursday. 

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.