The list of automakers that have backpedaled from their EV plans continues to grow. While Volvo is one of the latest to rethink its EV strategy, Toyota has also joined the fray and is reportedly cutting down its EV production target by 33% within two years, according to Japanese newspaper Nikkei.
According to the report, Toyota, known for its holistic approach to carbon neutrality, has decreased its 2026 global EV output forecast from 1.5 million to 1 million units. The decision to dial down its EV production was said to have been caused by the dwindling demand for BEVs, with the automaker already contacting its parts suppliers about the decision.
Toyota EV Sales
Toyota isn’t keen on selling EVs, with the company focusing on hybrids and hydrogen technology. With the bZ4X the only pure BEV in its lineup, the company only moved a hair over 100,000 units last year, though that seems to increase this year with the company selling 80,000 EVs during the first seven months of 2024. It is, however, still far from the updated plan of selling 400,000 EVs in 2025.
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The automaker is set out to reveal more BEVs in the years to come, along with more hybrid models. That massive EV ramp-up, if unchanged, includes an electric Toyota Highlander and a model to slot under the bZ4X that’s believed to be called the bZ3X. The plan is set to roll out as early as 2026.
Toyota’s Latest Backing From The Japanese Government
On a related note, Toyota has announced its latest (and greatest) backing in terms of EV battery tech – the Japanese government. According to the automaker, its development and production plans for its next-generation batteries (performance version) and all-solid-state batteries were certified by the Ministry of Economy, Trade and Industry (METI) as part of the Japanese government’s “Supply Assurance Plan for Batteries.”
At this point, the Nikkei report may tell us that the automaker is scaling down on its EV production output, but it’s not totally abandoning its electrification plans. It’s actually in line with its next-generation BEV battery development, which will ramp up in the years to come with government subsidies. Of note, Nissan, Mazda, Subaru, and battery maker Panasonic have also received the same backing at the same time as Toyota, amounting to $6.58 billion.
Source:
Nikkei
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- Even Toyota Is Cutting Back On This One Vehicle Segment
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