Toyota Delays US Electric Vehicle Production Amid Softening Global Demand
Toyota, one of the world's leading motor industry giants, has decided to push back the start date for electric vehicle (EV) manufacturing in the US due to the softening demand for battery-powered cars worldwide. Initially aiming for late 2025 or early 2026, the company now plans to launch its US EV operation in 2026, according to a spokesperson.
Despite this delay, Toyota remains committed to its global target of producing 1.5 million electric vehicles by 2026. In the next two years, the company plans to introduce 5 to 7 EV models 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, with plans for another electric model to be produced in Indiana.
To support its EV goals, Toyota is increasing its lithium-ion battery production capacity with a new factory in North Carolina set to come online next year. However, the decision to delay US EV production comes as the global car industry faces challenges with weakening demand for electric vehicles in key markets.
The recent struggles in the EV market are evident from Tesla's quarterly figures missing Wall Street expectations, potentially leading to a decline in annual deliveries. Volvo and Ford have also scaled back their EV plans, with Volvo abandoning its target for fully electric cars by 2030 and Ford adjusting its strategy for electric vehicles due to pricing and margin concerns.
In conclusion, the decision by Toyota and other major car manufacturers to delay or adjust their EV plans reflects the current challenges in the electric vehicle market. Investors and consumers should pay attention to these developments as they could impact the future of the automotive industry and the adoption of electric vehicles.