Marque brakes on electric

Toyota Motor Corporation is planning to scale down its targets for electric vehicle (EV) production.

The marque now plans to manufacture about 400,000 EVs in 2025 and around one million in 2026, a considerable drop from previous projections.

Despite a recent surge in consumer interest in electric cars, Toyota’s decision reflects a perceived softening in the global EV market.

It attributes this shift to other factors such as supply-chain challenges, fluctuating raw material costs and changing buyer preferences.

Toyota’s decision aligns with a growing trend of manufacturers adjusting their EV production strategies in response to market dynamics. It sells the fully electric bZ4X, pictured, in New Zealand.

It is, however, the company maintaining its commitment to expanding its electric line-up. It’s developing a range of new models, including two three-row SUVs to be made at its plants in Kentucky and Indiana.

Toyota’s move follows similar decisions by other carmakers. Volvo recently abandoned its plan to go fully electric by 2030, opting for a more diversified approach that includes mild hybrids and plug-in hybrids alongside EVs. Ford has axed a three-row all-electric and delayed the successor to its F-150 Lightning. 

Despite these adjustments, Toyota still aims to offer 30 battery-electric models worldwide in six years’ time, although achieving this target will likely require a renewed push in coming years.

The company’s decision to scale back its EV production targets reflects a cautious approach in an increasingly unpredictable market.