Australia's most popular car brand 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 is hitting back, alongside industry groups, claiming 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, including Tesla and the Electric Vehicle Council, say Toyota's allegations also 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, and potentially fiercest, in a series of debates about the suitability of electric cars but it comes after their sales in Australia have more than doubled and as future legislation promises to increase supply.
Toyota Australia sales vice-president Sean Hanley sparked the war of words with comments to journalists at the Japan Mobility Show.
The company used the event to show off future products, including its first electric car due to launch in Australia, the delayed bZ4X SUV.
Despite showing off an electric vehicle, Mr 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 Mr Hanley's comments prompted immediate rebukes from other parts of the automotive industry, including one of Toyota's newest and biggest rivals.
Tesla public policy vice-president Rohan Patel issued a statement on social network X, saying Mr 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 per cent clean energy from the sun" to fuel their cars.
"Already today the lifetime emissions of electric vehicles are far better than internal combustion (cars) and that gap is widening as the grid gets cleaner," he said.
"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."
Figures from the federal energy department show renewable sources generated 32 per cent of Australia's electricity last year, with most from solar followed by wind and hydro.
Electric Vehicle Council chief executive Behyad Jafari says the comments from Toyota also have the potential to undermine a lucrative local industry.
Australia produced more lithium than any other nation in 2022, according to the United States Geological Survey – the main element used to produce electric vehicle batteries.
"You'd think that common sense would tell you to push back against arguments that talk down Aussie jobs and opportunities in a booming battery sector," Mr Jafari said.
"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."
Mr Jafari says Toyota's criticism of electric cars and elevation of hybrid vehicle technology had more to do with what the company had to sell than the best interests of motorists.
"This is an attempt by them 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," he said.
"Toyota's market share has been dropping in Australia and the electric vehicle market share has been growing."
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 more than 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.
Australian Electric Vehicle Association national president Chris Jones says their popularity 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: less than $8000," he said.
"People would spend $8000 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."
Dr 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.
"Toyota will soon come up against the fact they do need to make an EV and a compelling one."
