Toyota says it would rather buy credits than ‘waste’ money on EVs
The CEO of Toyota isn’t mincing words, saying that he believes EVs will only make up 30% of the US new-vehicle market in 2030, half of the target the EPA sought last year. As the car industry’s largest hybrid pusher, Toyota says it is better positioned to just buy credits to close the EPA gap rather than “waste” money on BEVs, its CEO said.
In an interview with Automotive News, Toyota CEO Ted Ogawa said that the Japanese automaker plans to go with customer demand – and in his view, that’s varying degrees of “electrification,” usually in the form of hybrids with gas-burning engines.
Currently, the company is building a $13.9 million battery complex in North Carolina to be used in its EVs and hybrids sold in North America. Since 2021, Toyota has invested about $17 billion into its US manufacturing operations to build mostly hybrids.
“I know that EPA is now reconsidering what the regulation level should be. However, again, our starting point is what the customer demand should be. So, for example, 2030 regulations said the new-car market, more than half of it should be BEV, but our current plan is like 30%,” Ogawa said. “We are respecting the regulation, but more important is customer demand.”
What about closing the gap between proposed light-vehicle emissions regulations and what Toyota sells? “That’s a tough question. Regulation-wise, we would have to prepare something like credit purchase,” he told Automotive News. “It’s difficult to say, but it’s not better.”
“Wasted investment is worse than the credit purchase,” he added.
Toyota is one of the top-selling automakers, but EVs accounted for less than 1% of total sales last year. “Of course, to compare the battery to Tesla, we are behind; that may be true,” he said. “However, we are now catching up, not only the product but also the ecosystem surrounding the BEV area, such as the home charging or energy management.”
Electrek’s Take
Of course, none of this is terribly surprising. The brand has been a huge champion of hybrids all along, and sells just one EV for each of its two US brands, the Toyota bZ4X and Lexus RZ450e crossovers. Plus its love of hybrids has drawn loads of criticism from advocacy groups, including Public Citizen, for continuing to sell ICE and hybrid cars past 2030. Toyota also has a history of greenwashing its advertising and marketing, calling its half a dozen hybrid models “electrified,” which confuses consumers.
Toyota, like pretty much all automakers operating in the US, has a worried eye on China entering the US through Mexico – although BYD has said it has no plans to sell cars in the US due to too many hassles. Still, the fear is there, and the possibility looms that lower-priced Chinese vehicles will undercut those sold by other automakers, as happened in Mexico.
“Their product is so competitive, including the tariffs,” in Mexico, Ogawa told Automotive News. “But China also saw, for example, labor cost is increasing [and] material costs as well. So that’s why someday, they’ll be in the same condition” as other automakers in North America.
“Our dealers ask us every day how [we will compete with China in the U.S.] Still, we have the better product. However, it’s unclear how to keep competitiveness in terms of the MSRP or price area.”
Photo: Courtesy of Toyota
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Royal Enfield’s eagerly anticipated electric motorcycles, unveiled late last year under the Flying Flea brand, are now confirmed to hit the market early next year. Eicher Motors Managing Director B. Govindarajan narrowed down the release window, confirming that the two models currently in testing, the FF-C6 and S6, will debut in the fourth quarter of the fiscal year 2026, corresponding to January through March 2026.
The announcement provides a clear timeline for eager e-motorcycling enthusiasts who have closely followed Royal Enfield’s pivot to electric mobility. Previously, the company had remained relatively tight-lipped about exact launch dates and even many of the upcoming bikes’ key specs, only hinting that the electric motorcycle project was progressing steadily.
The Flying Flea name is a historical nod, reviving memories of Royal Enfield’s lightweight motorcycle originally used during World War II for airborne operations. Just like its iconic namesake, the new Flying Flea electric motorcycles are expected to be compact, accessible, and user-friendly, aiming at urban commuters and younger riders seeking a blend of heritage styling with modern electric propulsion.
The FF-C6 and S6 represent two distinct offerings within Royal Enfield’s electric lineup, signaling an ambitious start for the company’s electrification strategy. While specific technical details remain scarce, previous hints suggest that the models will prioritize practicality, affordability, and moderate performance suited to daily commuting rather than high-end, performance-oriented segments.
However, with a dearth of solid specs regarding power, range, or pricing, it’s too soon to tell how warmly the bikes may be received during their upcoming launch.
This cautious yet clear step into electric mobility aligns with Royal Enfield’s traditional ethos of delivering approachable motorcycles that combine classic design with dependable performance.
The company, owned by Eicher Motors, has enjoyed success internationally over the last decade, particularly with models like the Classic 350, Meteor 350, and Himalayan, which have resonated strongly with both new and experienced riders. The Flying Flea line is likely destined for international markets as well, though may launch solely in India first as Royal Enfield works to ramp up production.
Royal Enfield’s venture into electric motorcycles also follows a strategic €50 million investment by Eicher Motors into Stark Future, a cutting-edge electric motorcycle startup based near Barcelona, which likely helped Royal Enfield’s technical team.
For example, at the Flying Flea brand’s worldwide unveiling at the Milan Motorcycle Show last year, one of the company’s driving prototypes was spotted using several Stark VARG powertrain components to complete a working model for demonstration.
With electric motorcycles rapidly gaining popularity worldwide due to their efficiency, lower maintenance costs, and environmental advantages, Royal Enfield’s entry into this market comes at an opportune time. The company’s robust global presence and dedicated fan base provide a solid foundation for launching these models successfully.
With the success of relatively smaller electric motorcycles compared to the struggles of larger sport bike e-motorcycle companies, the Flying Flea appears positioned for a more welcoming market.
Given Royal Enfield’s knack for delivering motorcycles with a blend of nostalgic aesthetics and modern functionality, expectations are high for the FF-C6 and S6 to carve out their own distinct niche in the electric two-wheeler market. For now though, fans are still eagerly awaiting more information and details regarding the performance and price of the upcoming electric two-wheelers.
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![XPeng just teased its next-generation P7 sedan and it is SLEEK [Video]](https://i0.wp.com/electrek.co/wp-content/uploads/sites/3/2025/05/XPeng-P7-Gen-2-top.jpg?resize=1200,628&quality=82&strip=all&ssl=1)
It’s been less than a month since XPeng Motors began teasing a new camouflage sedan codenamed the E29. This morning (or this evening if you’re in China), XPeng unveiled the mystery sedan as its next-generation P7. This vast redesign of the Chinese automaker’s flagship BEV sedan is a bona fide stunner, and makes me wish I could drive one of my own in the US.
The P7 debuted at the Shanghai Auto Show in 2019 as XPeng’s first sedan and its second production model behind the now-discontinued G3 SUV. It was also the first XPeng model I ever drove during a trip to the Netherlands in 2022.
In its first two years of production, which began in 2020, XPeng built over 100,000 units of its flagship sedan, and the sport vehicle has remained a pillar in its global sales. Since its launch in China, we’ve seen XPeng deliver a 2023 refresh called the P7i and the P7+, complete with pure camera vision ADAS, which launched last fall as “the world’s first AI car.”
According to an internal letter sent out by XPeng founder, chairman, and CEO He Xiaopeng last December, the Chinese automaker has big plans for 2025 and beyond. It aims to become a globally recognized brand with a presence in over 60 countries by the end of the year.
The internal letter also stated XPeng’s plans to launch a new or facelifted model nearly every quarter in 2025. In Q1, we saw the debut of the G7 SUV, starting at an ultra-competitive price of around $34,000 in China. Since then, XPeng has been teasing another new model, codenamed “E29,” spotted driving around Guangzhou, where XPeng is headquartered, in camouflage last month.
Today, XPeng confirmed the E29 is not a bespoke model, but instead a completely new generation of the P7, dreamt up by Chief Designer Rafik Ferrag, who led the creation of the original 2020 model. Have a look:
XPeng shares first images of its stunning new P7 design
XPeng shared the initial images seen above alongside a brief press release outlining its exciting new design language as explained by its designer, Rafik Ferrag, who began teasing the new model on his own social media accounts earlier this week:
I’m very excited that the first official pictures and video are now visible to everyone. The original P7 was a milestone for XPENG and a turning point in China’s EV landscape. With this new generation, we set out to design a pure electric sports sedan that could amaze at every angle. This car is our dream—refined through countless iterations. In my eyes, the all-new XPENG P7 is a work of art, shaped with emotion and purpose.
The Chinese automaker explained that the new 5-seat P7 coupe reflects Ferrag’s “evolving design philosophy” and has been in development for the past five years. XPeng founder He Xiaopeng called it a “major upgrade” for the brand’s next leap in BEV technology, blending AI with luxury and the company’s new Turing Smart Driving system.
What specific technology the next-generation P7 holds remains unknown to the public at this time, but we were told more details will be revealed later. For now, we have our first official peek at this new futuristic model and a teaser video, which you can view below.
If the new P7 represents XPeng’s design language going forward, there should be many more exciting reveals in 2025 and beyond as the brand continues to expand into a globally recognized name.
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