Toyota delays US electric car plans as sales slow
Toyota is delaying the start of electric vehicle (EV) production in the US as global demand for battery-powered cars continues to decline.
Initially, the Japanese automotive giant aimed to begin production in late 2025 or early 2026. However, a company spokesperson informed BBC News that Toyota now anticipates launching its US EV operations at an unspecified time in 2026.
Several other major automakers, such as Volvo and Ford, have also recently scaled back their EV plans.
“We remain committed to our global target of producing 1.5 million battery electric vehicles by 2026,” stated Toyota spokesperson Scott Vazin. He added that over the next two years, the company intends to introduce “five to seven battery electric vehicles in the US market.”
Earlier this year, Toyota announced a $1.3 billion investment in its Kentucky factory, which is part of plans to manufacture a three-row electric SUV there. Additionally, the company revealed plans to develop another electric model at a plant in Indiana.
To support these initiatives, Toyota is increasing its lithium-ion battery production through a factory in North Carolina, which is expected to begin operations next year.
Toyota’s announcement came as the global car industry continues to struggle with weakening demand for electric vehicles in some major markets.
On Wednesday, Tesla’s quarterly figures missed Wall Street expectations, putting leading EV maker at risk of its first-ever decline in annual deliveries.
Last month, Volvo abandoned its target to produce only fully electric cars by 2030, saying it now expected to be selling some hybrid vehicles by that date.
The company blamed changing market conditions for its decision to give up a target it had announced only three years ago.
In August, Ford announced that it is shaking up its strategy for electric vehicles, scrapping plans for a large, three-row, all-electric SUV and postponing the launch of its next electric pickup truck.
Chief financial officer John Lawler said the firm was adjusting its plans in response to “pricing and margin compression”.
