Toyota postpones its plans for electric cars
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Toyota announced that it will postpone production plans for its electric cars due to slowing demand. Toyota is the latest company in the auto industry to postpone its plans in this area, after other companies such as Bentley, Ford, Mercedes-Benz, and Volvo reconsidered their timelines for the electric transition.
Toyota was scheduled to begin production of its electric cars in the United States in 2025, but now the company expects this to begin in mid-2026As is the case with many companies that were initially enthusiastic about converting cars to electric, Toyota has been forced to reevaluate its strategy as public enthusiasm for electric vehicles declines.
“We remain focused on our global goal of producing 1.5 million electric vehicles by 2026,” Toyota spokesman Scott Vazin said in a statement to the BBC. Despite the delay, Toyota intends to produce “5 to 7 electric cars in the United States,” Vazin added.
Toyota has invested $1.3 billion in its assembly plant in Georgetown, Kentucky, to prepare production of an electric sports car with three rows of seats. The company also spent $1.3 billion in North Carolina to produce lithium-ion batteries, in addition to allocating $1.4 billion to produce electric cars at its facility in Princeton, Indiana.
Despite the delay, the three-row electric sports car is still expected to go into production, but later than planned. Nikkei Asia reported that design updates, which suppliers need to adapt to, have also contributed to the delay. As for the three-row electric Lexus scheduled for 2030, it was announced that it will not be manufactured in the United States as planned, but will most likely be imported from Japan.
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