Grand Canyon Times

A Toyota executive said the cost of electric vehicles (EVs) is too high and the number of charging stations too few in the United States – including Arizona – for most consumers.

Jack Hollis, executive vice president of sales at Toyota Motor North America, told The Wall Street Journal that hybrid cars are a better alternative for now.

"As much as you want to talk about EVs, the marketplace isn't mature enough," Hollis said during a virtual meeting with journalists. "I don't think the market is ready for what the rhetoric is saying."

He referred to increasingly more expensive raw materials, including lithium, cobalt, and other crucial battery inputs that EVs require. This will lead to more expensive all-electric vehicles, he said. The current market for EVs is attracting only early adopters to embrace battery-powered vehicles.

Hollis' observations followed Toyota's introduction last year of three EVs for the U.S. market. The automaker revealed that Toyota and Lexus models worldwide "will have an electrified option" by 2025, according to a press release from Toyota. 

Toyota revealed its collaboration with EVgo in February, another press release noted. The two companies will provide buyers of Toyota's all-electric bZ4X with access to nationwide, complimentary charging at all EVgo-owned and -operated stations.

Hollis is not alone in his observations about why the current EV market is so weak. Consumer Reports revealed last month that consumers are interested in EVs. Most people, however – 6 out of 10 who were surveyed – are not buying EVs because of the lack of charging stations and other factors. The Consumer Reports survey was based on 8,027 interviews. It found that more than half (55%) of respondents cited EVs' limited travel range on a single charge as a reason why they decided against purchasing an EV.

Current electric vehicles can travel an average of 250 miles on a single charge, according to the University of California, Davis Plug-In Hybrid and Electric Vehicle Research Center.

There are 2,367 EV charging stations in Arizona, PlugShare.com reported.

The Consumer Reports survey found that 63% of respondents said they would not purchase an electric vehicle today. More than half of that number – 58% – said high EV prices are a deterrent.

Toyota, like other automakers, has thrown its support behind EV technology, according to The Wall Street Journal article. The company revealed last year that it plans to produce 3.5 million electric vehicles per year by 2030.

Hollis said he believes the purchase of EVs will increase in the future, so Toyota needs to be prepared for the transition. Hybrid models are a better short-term solution for buyers, though, he said.

The Inflation Reduction Act was passed by Congress and signed by President Joe Biden this month. It provides a $7,500 tax credit for buyers of new all-electric vehicles. That tax credit comes with "price and income restrictions" that many buyers will view as troublesome, Seth Goldstein, a senior equity analyst at Morningstar, told CNBC.