Toyota Motor will push back the production of electric vehicles in North America to the first half of 2026 amid slowing sales in the key auto market, Nikkei has learned.
Toyota previously planned to begin assembling a three-row, electric sport utility vehicle at its plant in Kentucky in 2025, investing $1.3 billion in the facility. It recently told suppliers that the start date will now be delayed by several months.
This is the first such delay by a Japanese automaker in North America to come to light.
Toyota attributed the change in part to adjustments in the vehicle’s design. It will give careful consideration to a new start date.
The automaker plans to launch 10 new EV models worldwide by 2026. While it has not announced its planned production lineup in North America, the SUV at the Kentucky plant was expected to be among its next-generation EVs equipped with an updated chassis.
Toyota will also cancel plans to begin producing new electric SUVs under its luxury Lexus brand in North America by 2030, instead shipping finished vehicles to the market from Japan.
Toyota has said it aims to produce 1.5 million EVs globally in 2026. But new plans communicated to its suppliers put the figure at around 1 million.
The shift comes as EV sales slow in the U.S. Electrics that are priced competitively against engine-powered vehicles have been slow to hit the market, and consumers are instead turning to hybrids, which are more affordable and a field where Toyota has an edge.
But the automaker still expects the North American EV market to grow over the long term. It plans to continue investing in the field with an eye on tougher environmental regulations.
Other Japanese automakers have also been investing in EV production in North America, taking advantage of tax credits offered under the administration of President Joe Biden. Honda Motor is spending around 1 trillion yen ($6.8 billion) to build a new factory in Canada, and will start producing EVs at an Ohio plant in 2025.
Source – Nikkei Asia
