Toyota has delayed its plans to begin manufacturing electric vehicles (EVs) in the United States, citing a slowdown in the global demand for battery-powered cars. Initially slated for late 2025 or early 2026, the Japanese automaker now expects to start production at an unspecified point in 2026, according to a company spokesperson.
The decision comes amid a broader industry trend, with several major automakers, including Volvo and Ford, also scaling back their EV ambitions. Despite the delay, Toyota remains committed to its global target of producing 1.5 million battery electric vehicles by 2026. “We’re still focused on our global (battery electric vehicle) target of 1.5M vehicles by 2026,” said Toyota spokesperson Scott Vazin, adding that the company plans to introduce five to seven electric vehicle models in the US within the next two years.
Earlier this year, Toyota announced a $1.3 billion investment in its Kentucky factory, aimed at building a three-row electric sport utility vehicle (SUV). It has also revealed plans for another electric model to be produced in Indiana. To support these production goals, the company is boosting its lithium-ion battery output with a new factory in North Carolina, set to become operational next year.
Toyota’s announcement reflects the challenges currently facing the global car industry, with a notable decline in demand for electric vehicles in some key markets. Tesla, a leader in the EV space, recently missed Wall Street’s quarterly expectations, putting it at risk of its first-ever decline in annual deliveries.
Volvo, another major car manufacturer, abandoned its goal of selling only fully electric cars by 2030, opting instead to continue offering hybrid models due to shifting market conditions. In a similar move, Ford adjusted its EV strategy in August by scrapping plans for a large, fully electric SUV and delaying the launch of its next electric pickup truck, citing pricing pressures and reduced profit margins.
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