Toyota Chairman Akio Toyoda has raised concerns about the environmental benefits of battery electric vehicles (BEVs), suggesting that hybrids may offer a more practical path to reducing carbon emissions in certain regions.

In a recent interview with Automotive News, Toyoda emphasized that carbon neutrality remains Toyota’s top priority. He highlighted that the company has sold approximately 27 million hybrid vehicles, which he claims have had a similar carbon reduction impact as 9 million BEVs.

Toyoda argued that in regions like Japan, where electricity is largely generated from fossil fuels, producing and charging BEVs could lead to higher overall carbon emissions compared to hybrids.

“If we were to have made 9 million BEVs in Japan, it would have actually increased the carbon emissions, not reduced them. That is because Japan relies on thermal power plants for electricity,” Toyoda said.

Toyota Chairman Akio Toyoda

Toyoda’s remarks underscore Toyota’s “multi-pathway” strategy, advocating for a diverse mix of powertrains – hybrids, plug-in hybrids, hydrogen fuel cells, and BEVs – tailored to local infrastructure and energy conditions. He also warned of economic risks, suggesting that an abrupt shift to EV-only production could endanger jobs, particularly in countries like Japan where engine manufacturing still dominates.

In Australia, where coal-fired power still contributes significantly to the electricity grid, Toyoda’s comments may resonate with consumers and policymakers.

According to the Federal Chamber of Automotive Industries (FCAI), for the year to date at the end of May 2025, 6,175 battery electric vehicles had been sold in Australia, compared with18,293 for the same period in 2024. However, hybrid vehicles – led by Toyota models such as the RAV4 and Corolla – account for 15,363 new car sales, down on the same period in 2024 when 18,246 hybrids were sold. By contrast, 40,696 petrol vehicles had been sold so far this year.

As Australia continues to develop its EV infrastructure and transition to cleaner energy sources, Toyota’s emphasis on a balanced approach to vehicle electrification highlights the complexities involved in achieving carbon neutrality across different regions.

The recently launched new Toyota RAV 4 features a new-generation plug-in hybrid powertrain 

Toyota recently announced that the all-new sixth-generation Toyota RAV4 would arrive in Australia during the first half of 2026, featuring an all-hybrid line-up, a new range-topping GR Sport variant and the brand’s first-ever plug-in hybrid model offered in the Australian market.

Toyota says the new-generation RAV4 plug-in hybrid will feature a ‘sixth-generation’ hybrid system with a 22.7kWh lithium-ion battery – enabling a targeted EV driving range of up to 100km (WLTP).