Toyota Delays US Electric Vehicle Manufacturing Amid Softening Global Demand
Toyota, the Japanese motor industry giant, has decided to push back the start date for electric vehicle (EV) manufacturing in the US due to the softening global demand for battery-powered cars. Originally aiming for late 2025 or early 2026, Toyota now expects to launch its US EV operation at an unspecified time in 2026, as confirmed by a company spokesperson to BBC News.
Despite this delay, Toyota remains focused on its global battery electric vehicle target of 1.5 million vehicles by 2026. In the next two years, the company plans to introduce 5 to 7 battery electric vehicles in the US market. Earlier this year, Toyota announced a $1.3 billion investment in its Kentucky factory to build a three-row electric SUV and plans to produce another electric model at a plant in Indiana.
To support these goals, Toyota is ramping up its lithium-ion battery production with a factory in North Carolina expected to come online next year. This announcement comes at a time when the global car industry is facing challenges with weakening demand for electric vehicles in major markets.
Other major car makers like Volvo and Ford have also scaled back their EV plans. Volvo recently abandoned its target to produce only fully electric cars by 2030, citing changing market conditions. Ford, on the other hand, announced a strategy shake-up for electric vehicles, scrapping plans for a large all-electric SUV and postponing the launch of its next electric pickup truck due to pricing and margin compression.
In conclusion, the decision by Toyota to delay its US EV manufacturing reflects the current challenges in the global electric vehicle market. It highlights the importance for investors to stay informed about industry trends and adjust their strategies accordingly. As the demand for electric vehicles continues to evolve, companies in the automotive sector will need to adapt to changing market conditions to remain competitive.