Toyota New Zealand is questioning the Government's timeline to reducing the country's carbon emissions.
The Government wants to introduce a Clean Car Standard to improve fuel efficiency - and a Clean Car Discount, funded by fees on high-emission vehicles.
It aims to reduce carbon emission standards to 105g of CO2 per kilometre by 2025.
Toyota chief executive Alistair Davis told Newstalk ZB it will happen but it's just a matter of when.
"People are increasingly recognising climate change and we need to do something about it," he said.
"It's [the Clean Car Standard] sending a signal to the car companies that you need to try and offer more fuel efficient and lower emission vehicles. That's a healthy thing in the long term, daunting in the short term."
Davis said New Zealand faces more roadblocks than other countries.
He says New Zealanders tow boats, go to the beach and there is a large rural community which prefers to, or needs to drive trucks.
Davis said it was a realistic plan given the way technology trends were heading but the timeframe appeared a bit too fast.
Toyota is accelerating its development of low or zero CO2 emission vehicles to support its commitment to reducing automotive emissions.
"Toyota has already committed to trying to get electric vehicles into its model lineup by 2025," Davis said.
"We are working across all powertrain technologies and alternative fuel options to advance the technology available to New Zealand consumers over the coming years."