Japanese automakers face California gasoline regulatory cliff in 2026

PALO ALTO, U.S./NEW YORK/TOKYO — Japanese automobile manufacturers face a new challenge of drastically reducing gasoline vehicles sold in California — and have less than four years to do it.

The state’s air regulators on Thursday approved new rules to phase out all gas-burning vehicles sales by 2035. The California Air Resources Board order goes into effect for the 2026 model year, when automakers are required to have 35% of new sales be of zero-emission vehicles.

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