Car giant Toyota has dramatically scaled back its plans for electric vehicles, suggesting that global demand for the technology is below original expectations.

Takeshi Uchiyamada, Toyota’s vice-chairman in charge of vehicle development, said: “The current capabilities of electric vehicles do not meet society’s needs, whether it may be the distance the cars can run, the costs, or how it takes a long time to charge.”

He also stated that the manufacturer expected to have a total of 21 petrol-electric hybrids in its global line-up by 2015.

Toyota has made a significant investment in hybrid vehicles over the past two decades, and now has five Toyota hybrids on sale in the UK as well as three Lexus hybrids.

The company had shown a compact electric vehicle concept around the same size as the current IQ at motor shows and, although a production version will be made, it will be a limited run of 100 vehicles in North America and Japan.

A spokesman for Toyota told Fleet News: “Toyota is capable and ready to produce an EV but, with a charging infrastructure that is not fully developed, the market is not ready.

“We believe that plug-in hybrid represents a better solution to today’s European car market, providing a 15-mile EV range needed for 70% of daily journeys chargeable in 90 minutes from a domestic power supply.

“Plug-in hybrid provides the benefit of both a hybrid and an EV, but with none of the downsides regarding range anxiety and charging time. It makes more sense to provide a larger number of practical low emission cars rather than sell very few zero emission vehicles.”

Although a £5,000 Government grant has been available towards the purchase cost of electric cars since 2011, and an £8,000 grant for an electric van since February 2012, take up has been slow, with only 2,311 cars and 140 vans applied for in total.

Nissan will begin building the Leaf electric car at its Sunderland plant in 2013, as well as batteries for that model and Renault’s electric cars and vans.

Jim Wright, managing director of Nissan GB, said: “It’s still early days and it’s very easy to be sceptical with new technology.

“The Government is sending a mixed message with the plug-in car grant and the forthcoming benefit-in-kind arrangements, and I don’t think there is a common view within the Government despite the commitment to CO2 reduction.

“As more companies come to market with the technology it will become easier for people to adopt, and we should see this over the next couple of years. The current level of antipathy will start to decline.”

Dale Eynon, head of fleet operations at the Environment Agency, said: “Electric vehicles are always going to be a niche for us, and now with a range of hybrid and diesel hybrid vehicles on the market these are proving more suitable for our needs.

“The versatility that we get from plug-in hybrids is much more applicable to our fleet.

“We also use recycled cooking oil in a diesel mix for some of our commercial vehicles: a 50% blend in the summer and a 25% blend in the winter. It outcompetes EVs on a scale of 10:1 in terms of cost versus carbon saving.”

Toyota is confident its current line-up, together with efficient diesels, will be better suited to future fleet needs than pure electric vehicles.

Its spokesman added: “With three new hybrids launched in 2012 (Yaris Hybrid, Prius+, Prius Plug-in hybrid) and the prospect of more on the way, hybrid remains a core technology for Toyota. We also plan to increase our sales of vehicles fitted with small efficient diesel engines under our collaboration with BMW from 2014.”

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