Toyota Motor has announced a significant shift in its electric vehicle (EV) strategy, cutting its production target for 2026 to one million cars. This represents a 30% reduction from the company’s previous forecast, a move driven by a slowdown in global demand for EVs.
The Japanese automaker informed its parts suppliers of the revised plan, as reported by Nikkei Asia. Under this new strategy, Toyota aims to produce over 400,000 EVs in 2025, with plans to more than double that number in 2026. This revised target stands in stark contrast to the company’s previous goal of producing 1.5 million EVs by 2026.
Despite this reduction, Toyota remains optimistic about the future of EVs, anticipating a substantial increase in sales. The company sold approximately 100,000 EVs in 2023 and sold around 80,000 from January to July of this year.
Toyota’s decision to lower its EV production target reflects a broader trend of cooling enthusiasm in the electric vehicle sector. Several other automakers have also scaled back their ambitions in recent months. Jeep, for example, has halted production of its Wrangler and Grand Cherokee models due to high inventory levels and sluggish sales. Similarly, Ford Motor Co. and General Motors have also adjusted their EV strategies, with Ford recently abandoning plans for a fully electric SUV.
The economic backdrop also plays a role in this shift. U.S. manufacturing activity has been contracting for five consecutive months, according to the Institute for Supply Management. This broader economic uncertainty has led to a more cautious approach among automakers regarding investments in new technologies, including EVs.
While Toyota’s decision reflects the current market realities, the company’s commitment to EVs remains. Its revised production target still represents a significant increase from its current output, indicating a continued focus on the EV segment. The future of the EV market remains uncertain, but Toyota’s adjusted strategy reflects a more cautious and realistic approach in the face of global economic challenges.
