Toyota said it will start producing electric vehicles in the United States only by 2026, citing further decelerating demand in key markets. It had targeted starting production of the electric vehicles by late 2025 or early 2026. That’s also part of a larger pattern taking place with the other major automakers. Volvo and Ford scaled back, or at least adjusted, their EV plans.
Of course, Toyota doesn’t give up on its global goal of producing 1.5 million electric vehicles by 2026. It promises to launch between five and seven new battery-electric vehicles in the US over the next two years. To supply those units, Toyota is expanding lithium-ion battery production with a factory in North Carolina set to start up next year. The company is also investing $1.3 billion in its Kentucky factory to build a three-row electric SUV and planning another electric model for its Indiana plant.
The broader car industry faces the test as demand for EVs begins to weaken in certain regions. For example, Tesla missed Wall Street expectations in its latest quarterly figures, while Volvo has revised its deadline to be fully electric by 2030 due to changed market conditions. Ford has also delayed some of its electric models as it responds to pricing pressure.
All these developments reflect a sea change in the EV landscape, as manufacturers adapt to fluctuating demand and economic factors.