Toyota Motor (NYSE:TM) is aiming to produce at least 2.5M vehicles in China per year by 2030, Reuters reported Saturday, citing three people. According to the report, three of the people reportedly said Toyota wants to raise output to as much as 3M by the end of the decade.

Toyota, a leader in hybrid vehicle technology, is pushing back on California’s current EV regulations, which require that 35 percent of sales of 2026 model-year vehicles be zero-emission. The automaker claims the requirement is “impossible” to achieve and needs to be reevaluated.

CARB's regulations call for 35% of 2026 model year vehicles, which will begin to be introduced next year, to be zero-emission vehicles (ZEV).

Toyota’s Jack Hollis called the EV mandate “impossible,” citing a lack of demand for electric vehicles. California’s emissions wavier has effectively created two sets of regulations and it’s been a contentious issue for years.