Toyota is delaying the commencement of electric vehicle (EV) production in the U.S. due to a decline in global demand for battery-powered vehicles.
The Japanese automotive giant had originally planned to begin manufacturing in late 2025 or early 2026. However, a spokesperson for Toyota informed media that the launch of its U.S. EV operations is now anticipated at an unspecified time in 2026.
Other major automakers, such as Volvo and Ford, have also recently revised their EV strategies.
Scott Vazin, a spokesperson for Toyota, stated, “We’re still focused on our global [battery electric vehicle] target of 1.5 million vehicles by 2026,” adding that the company plans to introduce “five to seven [battery electric vehicles] in the U.S. market” over the next two years.
Earlier this year, Toyota announced a $1.3 billion investment in its Kentucky factory to produce a three-row electric sport utility vehicle (SUV). Additionally, it plans to manufacture another electric model at a facility in Indiana.
To facilitate these objectives, Toyota is increasing its lithium-ion battery production with a new factory in North Carolina, expected to begin operations next year.
This announcement comes as the global automotive industry grapples with declining demand for electric vehicles in several key markets.
On Wednesday, Tesla’s quarterly results fell short of Wall Street expectations, potentially leading to the company’s first-ever annual decline in deliveries.
In August, Ford announced a shift in its electric vehicle strategy, canceling plans for a large, three-row, all-electric SUV and delaying the launch of its next electric pickup truck. Chief Financial Officer John Lawler noted that the company was modifying its plans in response to “pricing and margin compression.”
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