Toyota delays US electric car plans as sales slow
Toyota is delaying the start of electric vehicle (EV) manufacturing in the US, citing a slowdown in global demand for battery-powered cars.
Initially, production was set to begin in late 2025 or early 2026, but the company now anticipates launching its US EV operations sometime in 2026.
Several other major automakers, including Volvo and Ford, have also scaled back their EV ambitions. Despite the delay, Toyota remains committed to its global goal of producing 1.5 million battery electric vehicles by 2026.
The company plans to introduce 5 to 7 battery electric vehicles in the US market within the next two years.
Earlier this year, Toyota announced a $1.3 billion investment in its Kentucky factory to produce a three-row electric SUV. Additionally, another electric model is planned for production at its Indiana plant.
To support these efforts, Toyota is increasing lithium-ion battery production at a factory in North Carolina, expected to be operational next year.
The delay comes as the global car industry faces weakening demand for electric vehicles in key markets. Tesla recently missed Wall Street expectations for quarterly deliveries, raising concerns about its first-ever annual delivery decline.
Volvo, once aiming to produce only fully electric cars by 2030, has revised its target, acknowledging that hybrid vehicles will likely still be part of its lineup by that time. Similarly, Ford has adjusted its EV strategy, canceling plans for a large all-electric SUV and postponing the launch of its next electric pickup truck due to market pressures on pricing and margins.
