Toyota delays its planned production of electric vehicles due to lack of customer interest
Declining interest in electric vehicles is forcing the automotive industry to quickly reassess its plans. Currently, for this reason, the Japanese car manufacturer Toyota is postponing the planned start of electric vehicle production in the USA, which was initially scheduled to begin at the end of next year.
The Japanese automobile manufacturer Toyota postpones the planned start of electric vehicle production in the USA. Production was originally supposed to begin at the end of 2025 or the beginning of 2026, but due to globally weakening demand for battery vehicles, it has been postponed to an unspecified date in 2026. According to the information Toyota provided to the British BBC, nothing changes in the company's plans to produce 1.5 million electric vehicles by 2026.
Until recently, Toyota was criticized for lagging behind in the rise of electromobility, which could cause it problems in many markets. However, the current situation in the automotive industry, which is not favorable for electric vehicles, rather benefits the brand.
The company has quickly responded to electromobility and plans to introduce 5 to 7 electric models to the American market in the next two years. As part of these plans, it is investing 1.3 billion dollars in its Kentucky factory, where a three-row electric SUV is to be manufactured. In addition, it plans to produce another model at its plant in Indiana. Support for electric vehicle production is also complemented by increasing the production of lithium batteries at a new factory in North Carolina, which is set to start operations next year.
The weakening demand for electric vehicles is not just a challenge for Toyota. Tesla recently released results that did not meet Wall Street's expectations, indicating the risk of the first decline in annual deliveries. Volvo also retreated from its plan to sell only electric cars by 2030, admitting that it will still offer hybrid models. American Ford then announced changes in its electric vehicle strategy—canceling plans for a major three-seat electric SUV and delaying the introduction of another electric pickup.
Thus, Toyota is not the only automobile company that must react to market changes. The retreating demand for electric vehicles presents a challenge to the entire automotive industry, which has so far tried to gradually transform towards more sustainable means of transport and also to meet European Union standards.