Toyota Delays U.S. EV Production to 2026 Citing Slowing Market Demand

Toyota has announced a delay in the production of its first electric vehicle (EV) manufactured in the United States, pushing the start date to the first half of 2026. Originally planned to begin in late 2025, the automaker’s production of a three-row electric SUV at its Kentucky plant will now be delayed by several months.

One of the major factors contributing to the delay is the need for design adjustments to the upcoming SUV. The Japanese automaker also cited slowing sales of EVs in North America as a reason for the delay. (via Nikkei)

In addition to the SUV planned for its Kentucky plant, Toyota also has plans to produce another all-electric SUV at its factory in Princeton, Indiana, by the second half of 2026. Toyota is also investing $1.3 billion in the Kentucky plant and a planned lithium-ion battery manufacturing plant in North Carolina, set to begin operations in 2025.

As part of its updated strategy, Toyota has also decided to cancel plans to produce a Lexus-branded electric SUV in North America by 2030, opting instead to import finished vehicles from Japan.

Despite the delay, Toyota says it remains committed to launching 10 new EV models globally by 2026.

Toyota had initially set an ambitious goal of producing 1.5 million electric vehicles globally by 2026, but recent reports suggest that figure has been adjusted to around 1 million units.

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