Toyota Slows Down EV Production Amid Industrywide Shift – Here's Why They're Changing Course

Toyota, the world's largest automaker, has stepped back on its ambitious electric vehicle (EV) targets, trimming its 2026 production goals by a third. Originally aiming to roll out 1.5 million EVs by that year, the company has lowered the bar to one million units. According to Nikkei, this move is a response to the global EV market slowdown, a trend that's hit other major players too.

Volvo, Volkswagen and Ford have all recently scaled back their EV plans as sales in the electric vehicle sector soften. While still set to expand its EV lineup, Toyota is adjusting to the reality that growth won't be as fast as expected. 

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Still, the automaker's EV production is slated to increase. For 2024, Toyota aims to sell 140,000 EVs, up from 100,000 this year. By 2025, that number is expected to rise to 400,000.

Toyota's flagship EV, the bZ4X, launched earlier this year, but it hasn't made a huge splash in the market. By the end of August, only 717 units had been sold, which seems small compared to Tesla's Model Y. 

Tesla's popular model racked up 12,516 registrations in the first eight months of 2024, making it the country’s bestselling EV. This contrast highlights Toyota’s challenges as it tries to carve out a bigger market share.

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While it might seem like a setback, Toyota's efforts are far from over. The automaker has produced battery electric vehicles (BEVs) in China. Partnering with companies like BYD, FAW and GAC, Toyota has built models like the bZ3 sedan and the bZ3X crossover for the Chinese market. 

These partnerships show that Toyota isn't putting all its eggs in one basket but is diversifying its EV strategy to meet varying global demands.

Toyota's luxury division, Lexus, has also entered the BEV market with models like the UX 300e city SUV and the RZ, which shares its platform with the bZ4X. In 2021, Toyota announced a bold plan to introduce 30 new EV models by the end of the decade. They even showcased 16 concept cars to signal their dedication. 

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But a year later, the company began revising its plans, focusing on adopting more efficient production methods, similar to those used by Tesla.

There's still some uncertainty surrounding how this recent production cut will affect Toyota's broader EV ambitions. The company hasn't laid out exactly how these changes might influence the rollout of future models.

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