Toyota’s chairman and former CEO, Akio Toyoda, told reporters at an auto show in Japan this week that waning demand for electric vehicles (EV) is a sign that people are waking up to the reality that EVs aren’t the silver bullet against the supposed ills of carbon emissions they’re often made out to be.
Mr. Toyoda, a long-time skeptic of a full-steam-ahead adoption of EVs, stepped down from his role as CEO of Toyota this year amid criticism that he wasn’t serious enough about pushing the company into a quick adoption of battery-powered cars.
Asked by reporters at the auto show on his thoughts about falling EV demand, Mr. Toyoda’s response implied that he feels vindicated in his reluctance.
“There are many ways to climb the mountain that is achieving carbon neutrality,” he said while suggesting that consumers are finally waking up from a dreamscape pushed by climate change alarmists that puts EVs on a pedestal and overhypes their benefits while downplaying their drawbacks.
His remarks came as demand growth for EVs in various markets has slowed, leading some companies to dial back their electrification plans.
Market research firm Canalys estimates that global sales of EVs rose 49 percent in the first half of this year, down from last year’s 63 percent pace of growth.
Honda and General Motors announced on Wednesday that they were scrapping a $5 billion plan to develop EVs together, while GM said on Tuesday that it was slowing its electrification strategy.
“EV demand next year could be lower than expectations,” Lee Chang-sil, chief financial officer at South Korean battery maker LG Energy Solution said on Wednesday, per Reuters.
Transportation Secretary Pete Buttigieg, who has been helping the Biden administration push EVs onto reluctant drivers, recently acknowledged some of their drawbacks, saying he’s had trouble finding reliable EV charging stations. His admission came as the federal agency he helms announced $100 million in funding for EV charging stations.
‘Automotive Seasoning’
Mr. Toyoda’s remarks at the auto show that people are becoming more clear-eyed about the drawbacks of EVs stood in some contrast to an EV-boosting speech given by the current Toyota CEO and President, Koji Sato.
Mr. Sato spoke at an Oct. 25 press briefing at the Japan Mobility Show, kicking off his presentation by hyping up EVs.
However, in order to execute “our vision for battery EVs,” Mr. Sato said that Toyota would be “revisiting the fundamental principles of car making” in order to overcome the known drawbacks of EVs like limited driving range.
He talked up an apparent benefit of EVs, namely lower center of gravity and a more spacious interior, calling it “value that only battery EVs can offer.”
“In these cars, the scenery looks completely different,” he said.
Range Anxiety
A major worry among Americans considering the wisdom of switching to an EV is range anxiety, which is the fear of driving an EV and running out of power without being able to find a charging port—and ending up stranded on the side of the road.
“Range anxiety remains a top reason consumers are hesitant to switch from gasoline-powered vehicles to EVs,” Adrienne Woodland, spokesperson for AAA, said in a statement.
The study points to an estimated need for 68.9 million chargers across the United States and Canada by 2035 to support the pace of the EV transformation.
President Joe Biden has set a goal of 50 percent of all new vehicles by 2030 being either EVs or plug-in hybrids.
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