The UK’s new Zero Emission Vehicle (ZEV) mandate presents a significant challenge for the automotive industry, according to Toyota Europe President and CEO Yoshihiro Nakata.
Speaking at the Goodwood Festival of Speed, Nakata highlighted the need for collaboration among automakers and constructive dialogue with policymakers to develop practical strategies for meeting these ambitious targets.
The ZEV mandate requires that electric vehicles (EVs) make up at least 22 percent of a carmaker’s sales in 2024, with this percentage set to rise each year. Non-compliance could result in hefty fines of £15,000 per vehicle. Nakata acknowledged that Toyota currently offers only one all-electric model, the bZ4x, but assured that the company is planning to expand its EV range to provide more choices for consumers.
Toyota’s current focus remains on hybrid and plug-in hybrid vehicles, which Nakata believes are crucial for reducing CO2 emissions quickly. He emphasized that Toyota is responding to genuine customer demand, noting that hybrids seem to be more popular than fully electric vehicles now.
In line with this approach, Toyota has entered a partnership with Mazda and Subaru to enhance the efficiency of combustion engines with advanced electric motors and batteries, and to explore alternative fuels.
Despite its limited range of EVs, Toyota UK Managing Director Scott Thompson stated that the company is on track to meet the ZEV mandate targets for this year. Thompson, who assumed his position in January, expressed confidence in Toyota’s diversified strategy, which includes plans to launch five new EV models by 2026, including the Urban Crossover, already previewed in concept form.
Nakata did not comment on the European Union’s recent decision to impose up to 37.6% import tariffs on Chinese-built EVs, a policy the incoming UK government might also adopt. However, he acknowledged that such tariffs could temporarily benefit Toyota. Nakata also suggested that these tariffs could encourage Chinese manufacturers to set up production facilities in Europe.
Nakata reiterated Toyota’s commitment to its core values of providing happiness and mobility for all and ensuring no one is left behind. This commitment is reflected in the continued production of Corolla hybrids at the Burnaston plant near Derby, a facility that has been operational for 32 years and plays a significant role in Toyota’s contributions to UK society.