Toyota has joined the ranks of major automakers scaling back electric vehicle (EV) production plans, delaying its US manufacturing start date from 2025 to an unspecified time in 2026 due to weakening global demand for battery-powered cars. Like other industry players, Toyota is confronting a market where EV sales are softening, prompting a reassessment of timelines and goals.
Toyota’s move mirrors recent decisions from Volvo and Ford, both of which have also adjusted their EV strategies due to changing market conditions. Volvo has backed away from its ambitious target to produce only fully electric cars by 2030, acknowledging it will continue to sell hybrids beyond that date. Ford has similarly scaled back its EV plans, canceling a large all-electric SUV and delaying the launch of its next electric pickup truck due to concerns over pricing and profitability. The industry as a whole is grappling with slower-than-expected EV adoption, rising costs, and shrinking margins, casting doubt on the aggressive transition away from internal combustion engines.
