The chairman of Toyota said that falling demand for electric vehicles is a sign people are waking up to the reality that EVs are overhyped and have drawbacks.
by Tom Ozimek, The Epoch Times, October 26, 2023
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.
"People are finally seeing reality" about EV technology, Mr. Toyoda told reporters ahead of the Japan Mobility Show in Tokyo this week, speaking in his capacity as the head of the Japan Automobile Manufacturers Association, the organizer of the event.
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.
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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.
GM is "moderating the acceleration of EV production to protect our pricing, adjust to slower near-term growth in demand and implement engineering changes that will bolster profits," GM Chief Financial Officer Paul Jacobson said in an Oct. 24 earnings call with reporters in which he revealed that the weeks-long strike by unionized auto workers had already cost the company $800 million and counting.
Ford said earlier this month that it would temporarily cut one of three shifts at a plant that builds its electric F-150 Lightning pickup truck after slowing its EV ramp-up in July.
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"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.