Toyota Motor Corporation has announced a significant delay in the production of its electric vehicles (EVs) in North America, now set to begin in the first half of 2026. This decision comes in response to design adjustments and a notable slowdown in EV sales, as reported by the Nikkei business daily.
Key Takeaways
- Production of Toyota’s first battery EV model, a three-row SUV, will be postponed to early 2026.
- The delay is attributed to supply disruptions and governance issues.
- Toyota plans to introduce five to seven battery electric vehicle models in the U.S. over the next two years.
- The automaker has shifted its strategy from manufacturing electric SUVs under its luxury Lexus brand in North America to shipping completed vehicles from Japan.
Background on the Delay
Toyota had initially aimed to start production of its first battery electric vehicle in late 2025. However, a spokesperson for the company, Scott Vazin, confirmed that the timeline has now shifted to early 2026. This adjustment reflects ongoing challenges in the EV market, including supply chain disruptions and the need for design modifications.
The automaker’s Kentucky facility, which is central to its electrification efforts, received a $1.3 billion investment in February. This investment was intended to bolster Toyota’s capabilities in producing electric vehicles, but the recent slowdown in sales has prompted a reevaluation of its production timeline.
Strategic Changes in Production
In light of the delays, Toyota has revised its strategy regarding the production of electric SUVs. Originally, the company planned to manufacture these vehicles under its luxury Lexus brand in North America by 2030. However, this plan has been scrapped in favor of importing completed vehicles from Japan. This shift indicates a significant change in Toyota’s approach to the North American EV market, as the company adapts to the evolving landscape of electric vehicle demand.
Future Plans for Electric Vehicles
Despite the delays, Toyota remains committed to expanding its electric vehicle lineup in the U.S. The company has announced plans to introduce five to seven new battery electric vehicle models over the next two years. This ambitious rollout aims to position Toyota as a competitive player in the growing EV market, even as it navigates current challenges.
Conclusion
The delay in Toyota’s U.S. EV production underscores the complexities facing automakers in the transition to electric vehicles. As the market continues to evolve, Toyota’s strategic adjustments will be crucial in determining its success in the North American EV landscape. The company’s ability to adapt to changing consumer preferences and supply chain realities will be key as it moves forward into 2026 and beyond.