Japanese automakers face California gasoline regulatory cliff in 2026

Aug 27, 2022 | News On Japan

Conventional hybrids will not qualify as zero-emission vehicles under new rules

Aug 27, 2022 (Nikkei) - Japanese automobile manufacturers face a new challenge of drastically reducing gasoline vehicles sold in California -- and have less than four years to do it.

The state's air regulators on Thursday approved new rules to phase out all gas-burning vehicles sales by 2035. The California Air Resources Board order goes into effect for the 2026 model year, when automakers are required to have 35% of new sales be of zero-emission vehicles.

Since California accounts for 12% of the U.S. auto market, car manufacturers have little choice but to comply with the mandate.

"The specifics are strict, but it's been clear for some time that they plan to eliminate gasoline vehicles by 2035," said an executive at a Japanese automaker. "We're drawing up product plans to accommodate it."

After 2026, California will require automakers to make zero-emission vehicles 68% of new sales for the 2030 model year, then 100% for 2035 models. The types of automobiles that make the grade include electric vehicles, fuel-cell vehicles and plug-in hybrids with all-electric driving ranges of 80 kilometers or more.

When it comes to green vehicles, Toyota Motor and other Japanese peers specialize in conventional hybrids that cannot be plugged to charge batteries. Because California does not recognize conventional hybrids as zero-emission vehicles, new sales of these autos will be banned in California in 2035 as well. ...continue reading

Martinelli Breaks Japan Hearts as Brazil Win 2-1 in World Cup Thriller

Japan’s World Cup campaign ended in the cruelest possible fashion on June 29, as Gabriel Martinelli scored in the fifth minute of stoppage time to give Brazil a 2-1 victory over the Samurai Blue in their knockout match in Houston. Japan had led in the first half and were still level at 1-1 in the final moments, but Martinelli’s late strike sent Brazil into the Round of 16 and eliminated Japan from the tournament.

Strong Quakes Strike Japan 11 Times Since April

Strong earthquakes have continued to shake parts of Japan in recent weeks, with 11 temblors measuring lower 5 or above on the Japanese seismic intensity scale recorded across the country since April 2026.

First Train of the Day Derails at Kintetsu Kyoto Station

A Kintetsu Railway train derailed inside Kyoto Station on the morning of June 29, forcing partial suspensions on the Kintetsu Kyoto Line for the rest of the day and causing long delays that hit commuters, students and tourists.

Hikone Castle Stone Wall Collapses After Typhoon Deluge

A section of stone wall at Hikone Castle, one of Japan’s few surviving original Edo-period castles and a National Treasure whose main keep remains intact more than 400 years after its construction, collapsed after heavy rain caused by Typhoons No. 7 and No. 8, Hikone city officials said.

Japan Books Spot in World Cup Knockout Stage After Sweden Draw

Japan advanced to the knockout stage of the World Cup after a 1-1 draw with Sweden on June 25, finishing second in Group F and setting up a Round of 32 clash with Brazil in Houston.

MEDIA CHANNELS

MORE Business NEWS

Tokyo Stocks Steady As Yen Hits 40-Year Low

Tokyo stocks edged higher on June 29 as investors bought back selected shares after a sharp AI-led selloff, but gains were capped by caution over high technology valuations, Middle East tensions and a weakening yen that fell to its lowest level against the dollar since 1986.

Nikkei Tumbles As AI Rally Reverses

Tokyo stocks fell sharply on June 26 as investors locked in profits from Japan’s record-setting AI-driven rally, with SoftBank Group and chip-related shares leading a broad retreat after reports that OpenAI may delay its initial public offering.

Japanese Household Assets Hit Record 2,386 Trillion Yen

Japanese households held 2,386 trillion yen in financial assets at the end of March, up 7.1% from a year earlier, as rising share prices, wider use of the new NISA investment program and the weaker yen lifted the value of assets held by individuals.

Inside The Shadow Market For Japan’s Temples And Shrines

The sale of religious corporations that operate temples and shrines across Japan is drawing growing scrutiny from authorities, who fear the transactions could be used for tax evasion and money laundering, as brokers openly advertise properties and corporate status for tens or even hundreds of millions of yen.

Nikkei Falls Again, Briefly Down 1,300 Yen on AI and Semiconductor Pullback

The Nikkei Stock Average fell for a second straight session in Tokyo as investors locked in profits from a rapid rally in artificial intelligence and semiconductor-related shares, briefly sending the benchmark down more than 1,300 yen before bargain hunting helped it recover part of the loss.

Japan’s Shipbuilders Look to Resume Construction of LNG Carriers

Imabari Shipbuilding, Kawasaki Heavy Industries, and Namura Shipbuilding are aiming to resume construction of liquefied natural gas carriers around 2035, as Japan’s shipbuilding industry looks for a path to recovery after losing much of the global market to lower-cost rivals in South Korea and China.

Japan And U.S. Discuss Response as Yen Weakens to 39-Year Low

Finance Minister Katayama held online talks with U.S. Treasury Secretary Scott Bessent as the yen approached its weakest level in about 39 years, with the two sides believed to have discussed possible responses, including foreign exchange intervention.

How to Buy from a Japanese Car Auction Without Getting Scammed?

Every year, thousands of people save money by buying through the Japanese auction process. But many do not realize they've paid too much until the vehicle arrives.

< 2 3 4 5 >