Toyota sales chief says EVs ‘impractical’ for Australian drivers as Tesla retaliates against ‘cynical’ attack
Sean Hanley says hybrid vehicles are ‘better fit’ in Australia but Electric Vehicle Council says brand’s comments could undermine lithium industry
Australia’s most popular car brand, Toyota, has launched a stinging attack on electric vehicles claiming they are not ready for our roads, not as green as they seem and remain “impractical for the vast majority of Australian motorists”.
But Australia’s most popular electric car brand and industry groups claim the argument is a “cynical” attack by a company “too slow off the mark” and at risk of losing the future automotive race.
The organisations responding – which include Tesla and the Electric Vehicle Council – say Toyota’s comments have the potential to slow cuts to transport emissions and harm a promising local industry exporting in-demand battery minerals.
The argument is the latest about the suitability of electric cars. It comes after EV sales in Australia have more than doubled and as future legislation promises to increase supply.
Sean Hanley, the vice-president of sales at Toyota Australia, made the comments to journalists at the Japan Mobility show wherethe company showed off future products, including its first electric car due to launch in Australia, the delayed bZ4X SUV.
Despite showing off an electric vehicle, Hanley told journalists hybrid vehicles were “a better fit” for Australian motorists and could have greater environmental benefits.
“[Battery electric vehicles] make sense right now in places like Norway where most energy is renewable and incomes are high but Australia is not Europe,” he said. “In countries like Australia, our data suggests that hybrids can have a greater impact than full electrification in getting carbon off the road.”
He argued Toyota could make more hybrid vehicles with the same materials used to create one electric car, that EVs were “powered, in many cases, by electricity generated from coal” and that they remained “impractical” for drivers.
But Hanley’s comments prompted immediate rebukes from other parts of the automotive industry, including one of Toyota’s newest and biggest rivals. Rohan Patel, Tesla’s vice-president of public policy, issued a statement on social network X (formerly Twitter) saying Hanley is “obviously not much of an expert on the Australian electricity grid”.
He pointed to Australia’s growing use of renewable electricity and said thousands of drivers were using “100% clean energy from the sun” to fuel their cars.
“Aussies are too smart than to be tricked by cynical [public relations] that aims to slow the sustainable transportation transition to help sell internal combustion vehicles in the short-term,” he said.
Figures from the federal energy department show renewable sources generated 32% of Australia’s electricity last year, with most from solar followed by wind and hydro.
The Electric Vehicle Council’s chief executive, Behyad Jafari, says the comments from Toyota also have the potential to undermine a lucrative local industry. Australia produced more lithium – the main element used to produce electric vehicle batteries – than any other nation in 2022, according to the United States geological survey.
“These comments go against what’s in the best interest of both Australian consumers looking to save on fuel bills and Australia’s economy by talking down the battery industry when we’re the ones who can supply the world with electric vehicle batteries,” Jafari said.
“This is an attempt by [Toyota] to try to defend their own failings rather than admitting, as they have at a global level, they got it wrong and they’ve been too slow off the market with EVs.”
“Toyota’s market share has been dropping in Australia and the electric vehicle market share has been growing,” he said.
Figures from the Federal Chamber of Automotive Industries show Toyota remains the top-selling brand in Australia, but its lead is narrowing. The Japanese car maker sold over 21,000 fewer vehicles this year than during the same period last year, while electric rival Tesla sold almost 24,000 more cars.
Electric vehicle sales from all brands have more than doubled in 2023.
The Australian Electric Vehicle Association’s national president, Chris Jones, says the popularity of EVs had been boosted by the arrival of more electric models that are ultimately cheaper to run than petrol cars and more environmentally friendly.
“When it comes to buying a new vehicle, the cost difference between a hybrid Toyota Corolla and a full-electric MG4 is small [at] less than $8,000,” he said.
“People would spend $8,000 on fuel in the next five years, so on a financial basis if you’re going to hold on to a car for a reasonable time, the EV is the better option.”
Jones says there are a small number of circumstances in which electric cars do not yet meet motorists’ needs but they represent a minority of users who tow “extremely heavy loads” in “very difficult driving conditions”.
“Everyone else’s needs are entirely met by what’s on the market and what will continue to come to market,” he said.