Toyota argues that the Australian Government’s timetable for capping car emissions is overly ambitious.

Australia’s most popular vehicle brand, Toyota, has expressed concerns about the new car emissions rules proposed by the centre-left government, stating that it would negatively impact middle Australia.

Labor’s new vehicle emissions standards (NVES), set to go into effect in January 2025, impose an emissions limit on each car manufacturer’s fleet that will tighten annually to reduce transportation pollution.

Many countries around the world, including the United States, Canada, the European Union, the United Kingdom, and Japan, have already implemented their own versions of vehicle emissions standards.

Despite Toyota launching its first electric vehicle in Australia, the brand believes that car companies need more time to comply with fuel efficiency standards and introduce efficient vehicles to Australia, especially low-emission four-wheel drives and utility vehicles.

Toyota Australia’s vice president of sales and marketing, Sean Hanley, argued that the new regulations would force brands to increase prices on large fuel-consuming vehicles like the LandCruiser and light commercial vehicles such as the HiLux.

While acknowledging that electric vehicles will play a crucial role in Toyota’s electrification strategy, Hanley mentioned that the government’s proposed transition timeline is too rapid.

“The trajectory is too steep, especially for large four-wheel drive SUVs and light commercial vehicles,” Hanley stated, as reported by AAP.

According to Hanley, the NVES does not consider the technical challenges, time requirements, and significant costs needed to develop practical, capable, and affordable commercial electric vehicles (EVs).

Toyota is currently formulating its official response to the government but anticipates that car manufacturers will need a minimum of three years to introduce efficient vehicles in Australia.

In addition, Hanley emphasized that Toyota will not buy credits from other companies to comply with emissions targets and avoid financial penalties.

“We would rather pay a fine than purchase credits and will pass on the costs,” he said.

Hanley warned that unless the final regulations are less stringent, they will have a detrimental impact on regional and rural Australia, affecting the entire economy.

“If we are fined, the costs associated with developing low-emission EVs would likely be passed on to the customers,” he added.

“I cannot envision how we can absorb these substantial fines.

“To anyone willing to listen, I ask: where are the alternative vehicles for these customers in the next few years that are affordable and capable of meeting their needs? We simply need more time to make the necessary adjustments.”

These comments coincide with Toyota unveiling its bZ4X electric SUV in Canberra, priced at $66,000, placing it in direct competition with Tesla’s leading vehicle models.

With its price point, Toyota will directly compete with Tesla, whose Model 3 and Model Y start at $61,900 and $65,400, respectively.

In 2023, Tesla sold over 3,300 electric cars in Australia, with BYD following with more than 1,300 sales, according to the Federal Chamber of Automotive Industries.

This article includes contributions from AAP.