"The state of California lost Toyota," Scotto said on "Power Lunch" Tuesday.
He pointed to a number of issues in the Golden State that negatively affect companies' bottom line: tax structure, workers' compensation and liability insurance.
"There are so many other levels of problems that we face in California that make it very difficult for any business to be in the state of California," he added.
Toyota has operated its North American headquarters in the suburb south of Los Angeles for more than 30 years.
Scotto, who expressed his disappointment with the automaker's decision outside the Torrance City Hall Monday, reiterated his sentiment on "Power Lunch" Tuesday: "Making this move now, and the fact that we have very little to do or say about keeping them here is really disappointing," he said.
The closing of the headquarters will affect thousands of jobs. Scotto said Torrance plans to "aggressively go after" other companies that want to relocate to the city.
Toyota's move is seen as a victory for the Lone Star State, which has been courting California businesses.
Read MoreThe top states for business in 2013
—By Jaewon Kang, Special to CNBC.