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.

Toyota aims to make at least 2.5 million vehicles a year in China by 2030, three people said, an overhaul that will see it bring its Chinese sales and production operations closer together and allow local executives a freer hand in development.

Toyota is set to increase its annual car production in China to 2.5 million by 2030, marking a strategic shift to regain market share lost to local competitors. The Japanese automaker plans to empower local teams