By Jennifer Dudley-Nicholson in Canberra

Australia’s most popular vehicle brand has warned against the federal government’s plan to cap vehicle emissions.

Labor’s proposed New Vehicle Efficiency Standard was “too quick” and “aggressive” Toyota Australia said, even as it launched its first electric vehicle in the country.

Toyota took the wraps off its bZ4X electric SUV in Canberra, revealing a vehicle that will sell for $66,000, which puts it in direct competition with cars from market leader Tesla.

But the company’s sales vice president Sean Hanley said while the new vehicle would be “the foundation of Toyota’s electrification strategy,” the company would need more time to reduce emissions from the rest of its fleet to meet Australia’s proposed fuel-efficiency rules.

Toyota’s vehicle launch comes just days before public consultations on the new standard close, after the government proposed rules that would see Australia catch up to emissions rules in the US by 2028.

The fuel-efficiency standard would put an emissions limit on vehicles across each automaker’s fleet, forcing companies to balance sales of high-emitting vehicles with low-emission alternatives.

But Mr Hanley said while Toyota supported the introduction of emission limits, the company urged the government to give car companies more time to deliver efficient vehicles in Australia, particularly low-polluting four-wheel drives and utes.

“The proposed transition that we’re seeing right now, the timing of that transition is too quick,” he said.

“It simply doesn’t recognise the technical hurdles, the lengthy time and the substantial cost that will be required to deliver commercial (battery electric vehicles) that are practical, that are capable and, above all, that are affordable.”

Mr Hanley said Toyota was still developing its official response to the government but it would argue companies needed longer than three years to bring more efficient vehicles to Australia, and the brand would refuse to buy credits from other companies to meet its emissions targets and avoid financial penalties under a scheme.

“I can tell you, from Toyota’s perspective, we’re not buying credits,” he said.

“We’d pay a fine, we’d pass it on.”

Despite the company’s criticism, Toyota launched its first electric car in the country this week, with the bZ4X SUV available in front-wheel and all-wheel drive models starting at $66,000 and $74,900 respectively.

The SUVs are designed for off-road use, feature a battery and motor integrated into the vehicles’ structure for greater stability, and come with a range of 535km and 485km per charge.

Mr Hanley said the company had more than 7000 expressions of interest in the bZ4X vehicles, though the company aimed to sell 1500 electric cars this year.

More than 200 Toyota dealers would also establish electric car charging facilities, he said, as part of a $20 million program throughout urban, regional and rural locations.

Its price will put Toyota in direct competition with Tesla, with its Model 3 and Model Y undercutting the new vehicles with starting prices at $61,900 and $65,400 respectively.

Tesla sold more than 3300 electric cars in Australia during 2023, according to the Federal Chamber of Automotive Industries, followed by BYD with more than 1300 sales.