Electric Vehicle | Toyota Delays EV Production in the U.S. to 2026

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Electric Vehicle | Toyota Delays EV Production in the U.S. to 2026

Date：2024-10-09

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Keyword tags： EV NA Toyota

Public media reports that Toyota is postponing the production of electric vehicles (EVs) in the United States due to slowing global demand for battery electric vehicles. Originally planning to begin production by the end of 2025 or early 2026, Toyota has now adjusted its timeline to initiate its U.S. EV operations in 2026, with no specific date set.

The company had planned to manufacture a three-row electric SUV at its Kentucky plant by the end of 2025. Recently, Toyota has notified its suppliers to revise the production schedule, attributing the delay to "production preparation issues." Additionally, Toyota canceled plans to produce Lexus SUVs in North America by 2030; the company now intends to export the stock from Japan to North America, rather than producing it locally in the U.S.

Scott Vazin, a spokesperson for Toyota, stated that the Company remains the target of achieving 1.5 million units of global EV production by 2026, with plans to launch 5 to 7 battery electric vehicles in the U.S. market within the next two years. However, industry observers suggest that the production target of 1.5 million units is likely to be reduced to around 1 million units.

Earlier this year, Toyota announced a $1.3 billion investment in its plant in Georgetown, Kentucky, to produce a three-row electric SUV, with plans for production to begin in 2025. The company also announced plans to manufacture another brand-new electric SUV model at its plant in Princeton, Indiana. To date, the automaker has invested $2.7 billion in new plants in Kentucky and Indiana.

Furthermore, to support these goals, Toyota is establishing a factory in North Carolina to increase its lithium-ion battery production. The North Carolina battery plant is expected to start operation in 2025, supplying future Toyota electric vehicles to achieve the company's global EV production target by the end of 2026.

Major automakers, including Volvo and Ford, have recently downsized their EV plans. Volvo abandoned its goal to produce only pure electric vehicles by 2030 last month, stating that it now expects to still sell about 10% hybrid vehicles by that time, attributing this adjustment to changing market conditions. Ford announced in August that it would adjust its electric vehicle strategy, canceling plans for a large three-row all-electric SUV and postponing the launch of its next electric pickup truck. Tesla's third-quarter delivery numbers were also below Wall Street expectations, putting it at risk of a first-ever annual decline in deliveries. Toyota's electric vehicle strategy is also facing challenges from market demand volatility.

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