Electric Cars May Be Dirtier Than Hybrids, Warns Toyota Boss

Toyota promotes hybrids as cleaner than EVs in fossil-fuel-dependent regions

Toyota Chairman Akio Toyoda has reignited the debate over the environmental impact of electric vehicles, arguing that hybrids may still be the more effective choice for reducing carbon emissions in certain regions. In an interview with Automotive News, Toyoda emphasised that carbon neutrality remains Toyota’s central goal, but warned that the path to achieving it may vary depending on local energy infrastructure.

Toyoda pointed to Toyota’s global sale of 27 million hybrid vehicles, stating that these have yielded carbon reductions equivalent to around 9 million battery electric vehicles. He noted that in countries like Japan, where much of the electricity is still generated by fossil fuels, producing and charging EVs can paradoxically result in higher emissions than hybrid use.

“If we were to have made 9 million BEVs in Japan, it would have actually increased the carbon emissions,” he said, highlighting Japan’s reliance on thermal power generation.

These remarks align with Toyota’s “multi-pathway” strategy that supports a mix of hybrid, plug-in hybrid, hydrogen fuel cell and battery electric technologies. The approach allows the company to tailor its vehicles to the energy and infrastructure realities of specific markets, instead of pursuing an all-electric future.

The implications of this strategy are particularly relevant in markets like Australia, where coal-fired power remains a major part of the grid. Recent data from the Federal Chamber of Automotive Industries (FCAI) shows a modest rise in EV sales—6175 units sold year-to-date through May 2025, up from 18,293 in the same period in 2024. Meanwhile, hybrid vehicle sales have declined to 15,363 from 18,246 during the same periods, and petrol vehicles still dominate with 40,696 sold so far this year.

Toyota continues to expand its hybrid offerings in Australia, announcing that the sixth-generation Toyota RAV4, arriving in 2026, will feature an all-hybrid lineup. The new range includes a flagship GR Sport model and introduces Toyota’s first plug-in hybrid for the Australian market. Equipped with a 22.7kWh battery, the plug-in hybrid RAV4 will offer up to 100km of electric-only range under WLTP standards.

While EVs continue to gain ground globally, Toyota’s strategy highlights the ongoing challenges and regional differences in achieving sustainable transport solutions. As countries like Australia build out cleaner energy grids and EV infrastructure, the debate over the best path to carbon neutrality is far from settled.