Australia’s most popular vehicle brand has warned the federal government’s plan to limit vehicle emissions is too hasty.
Labor’s proposed new vehicle efficiency standard was “too fast” and “aggressive”, Toyota Australia said, even as it launched its first electric vehicle in the country.
Toyota unveiled its bZ4X electric SUV in Canberra, revealing a vehicle that will sell for $66,000, putting it in direct competition with cars from market leader Tesla.
Toyota has launched its bZ4X electric SUV for the Australian market, which will sell from around $66,000.
But the company’s vice president of sales, Sean Hanley, said that while the new vehicle would be “the foundation of Toyota’s electrification strategy,” the company would need more time to reduce emissions from the rest of its fleet to meet the requirements. Australia’s proposed fuel efficiency rules.
The launch of Toyota’s vehicle comes just days before public consultations on the new standard close, after the government proposed rules that would see Australia catch up with US emissions standards by 2028.
The fuel efficiency standard would impose an emissions limit on vehicles in each automaker’s fleet, forcing companies to balance sales of high-emission vehicles with low-emission alternatives.
But Hanley said while Toyota supported the introduction of emissions limits, the company urged the government to give car companies more time to deliver efficient vehicles in Australia, particularly four-wheel drive vehicles and low-polluting utes.
“The proposed transition that we’re seeing right now, the timing of that transition is too fast,” he said.
“It simply does not recognize the technical obstacles, the long time and the substantial cost that will be required to deliver commercial vehicles (battery electric vehicles) that are practical, that are capable and, above all, that are affordable.”
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Hanley said Toyota was still developing its official response to the government, but would argue the companies needed more than three years to bring more efficient vehicles to Australia.
Toyota would refuse to buy carbon credits from other companies to meet its emissions targets and avoid financial penalties under one plan, according to Hanley.
“I can tell you that, from Toyota’s perspective, we are not buying credits,” he said.
“We would pay a fine and pass it.”
The proposed fine was $100 for each gram of CO2 above the limit for each product sold.
This is despite Energy Minister Chris Bowen saying he expected companies to follow the law when he announced the proposal earlier this month.
“We expect businesses to follow the law,” Bowen said. “They don’t like the bad press that comes with not meeting fuel emissions standards and that’s why the system works in all comparable countries.”
Despite the company’s criticism, Toyota launched its first electric car in the country this week, with the bZ4X SUV available in front-wheel drive and all-wheel drive models starting at $66,000 and $74,900 respectively.
The SUVs are designed for off-road use, have a battery and motor integrated into the vehicle structure for greater stability and have a range of 535 kilometers and 485 kilometers per charge.
Hanley said the company had more than 7,000 expressions of interest in bZ4X vehicles, although the company aimed to sell 1,500 electric cars this year.
More than 200 Toyota dealers would also set up electric car charging facilities, he said, as part of a $20 million program in urban, regional and rural locations.
Its pricing will put Toyota in direct competition with Tesla, with its Model 3 and Model Y undercutting the prices of the new vehicles with starting prices of $61,900 and $65,400 respectively.
Tesla sold more than 3,300 electric cars in Australia during 2023, according to the Federal Chamber of the Automotive Industry, followed by BYD with more than 1,300 sales.