People Will Do What's Best for Themselves

From January: EVs pile up in China (Globe and Mail)

5½ years ago we bought the Toyota RAV4 hybrid. We're very happy with its reliability and fuel economy, as well as its 400-mile range on a full tank. The car's emissions are not zero as they are with EV's (this is not the time to get into the debate about lifetime pollution, which includes manufacturing and disposal); let's just say that the hybrid trade-offs were optimal for this consumer.

Apparently many other consumers feel the same way. The production of electric vehicles has far outstripped demand. EVs are piling up on dealers' lots.

As recently as a year ago, automakers were struggling to meet the hot demand for electric vehicles. In a span of months, though, the dynamic flipped, leaving them hitting the brakes on what for many had been an all-out push toward an electric transformation.

A confluence of factors had led many auto executives to see the potential for a dramatic societal shift to electric cars: government regulations, corporate climate goals, the rise of Chinese EV makers, and Tesla’s stock valuation, which, at roughly $600 billion, still towers over the legacy car companies.

But the push overlooked an important constituency: the consumer.

The last laugh goes to Toyota chairman Akio Toyoda, who has repeatedly said that hybrids are superior to EVs.

“People are finally seeing reality,” said Toyota Motor Chairman Akio Toyoda. For years, Toyota and other EV-cautious carmakers had been touting hybrids as a consumer-friendly way to reduce carbon emissions.

Fortunately, America is not yet a command economy like the late lamentable Soviet Union, which produced a glut of low-quality shoes and cars. Eventually consumer preferences win out.