Around 10 million vehicles are built yearly in Japan from domestic brands including Toyota, Honda, and Subaru. Around 5 million vehicles are exported. By 2030, Toyoda points to data predicting total domestic output will drop to 8 million vehicles annually, all of which will have combustion engines. If those vehicles are banned roughly five years later from many markets, including the US, then Japan’s auto industry will be in serious trouble. Some 5.5 million jobs could be eliminated. “If they say internal combustion engines are the enemy, we would not be able to produce almost any vehicles.”
Toyoda is of the firm belief that hybrids and PHEVs are the best solutions for the foreseeable future. This would allow suppliers and factories to remain running, few (if any) layoffs, and a more balanced economic path towards carbon neutrality.