Toyota Delays US Electric Vehicle Manufacturing Amid Softening Global Demand
Toyota, the Japanese motor industry giant, has announced a delay in the start date for electric vehicle (EV) manufacturing in the US due to softening global demand for battery-powered cars. The company was originally aiming to begin production in late 2025 or early 2026 but now expects to launch its US EV operation at an unspecified time in 2026.
“We’re still focused on our global battery electric vehicle target of 1.5 million vehicles by 2026,” said Toyota spokesperson Scott Vazin. The company plans to introduce 5 to 7 battery electric vehicles 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 and 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 delay in Toyota’s EV manufacturing comes as several other major car makers, including Volvo and Ford, have also scaled back their EV plans. Volvo recently abandoned its target to produce only fully electric cars by 2030, citing changing market conditions. Ford announced a shake-up in its electric vehicle strategy, scrapping plans for a large all-electric SUV and postponing the launch of its next electric pickup truck.
The global car industry continues to struggle with weakening demand for electric vehicles in some major markets. Tesla’s quarterly figures missed Wall Street expectations, putting the leading EV maker at risk of its first-ever decline in annual deliveries. Chief financial officer John Lawler of Ford stated that the company is adjusting its plans in response to “pricing and margin compression.”
As the landscape of the electric vehicle market evolves, car manufacturers are adapting their strategies to meet changing consumer demands and market conditions.
