Toyota, one of the world’s leading motor industry giants, is facing a setback in its plans to start electric vehicle (EV) manufacturing in the US. The company has announced a delay in the start date, citing a softening global demand for battery-powered cars.
Initially aiming to begin production in late 2025 or early 2026, Toyota now expects to launch its US EV operation at an unspecified time in 2026. This news comes as several other major car makers, including Volvo and Ford, have also recently scaled back their EV plans.
Despite the delay, Toyota remains committed to its global target of producing 1.5 million battery electric vehicles by 2026. The company plans to introduce 5 to 7 EV models in the US market in the next two years.
Earlier this year, Toyota announced a $1.3 billion investment in its Kentucky factory to build a three-row electric SUV. The company also has plans to produce another electric model at a plant in Indiana. To support these goals, Toyota is ramping up its lithium-ion battery production with a factory in North Carolina set to come online next year.
The announcement from Toyota comes at a time when the global car industry is facing challenges with weakening demand for electric vehicles in some major markets. Tesla recently reported quarterly figures that missed Wall Street expectations, putting the leading EV maker at risk of its first-ever decline in annual deliveries.
Volvo and Ford have also made adjustments to their EV strategies in response to changing market conditions. Volvo abandoned its target to produce only fully electric cars by 2030, while Ford scrapped plans for a large all-electric SUV and postponed the launch of its next electric pickup truck.
As the landscape of the electric vehicle market continues to evolve, Toyota and other car manufacturers are adapting their plans to meet shifting demands and ensure their competitiveness in the industry.
