Toyota is reevaluating its ambitious plan to sell 1.5 million electric vehicles (EVs) by 2026, citing challenges such as new U.S. tariffs and slower-than-expected EV adoption in key markets.
In the fiscal year, Toyota sold over 10.2 million vehicles globally, but only 145,000 were fully electric, accounting for about 1% of total sales. This is significantly lower than the global average of 14% EV sales in 2024. A Nikkei report indicated that Toyota had already informed suppliers of plans to reduce EV production targets by 20%, aiming for 1 million units by 2026 instead of the initially planned 1.5 million.
Despite these adjustments, Toyota is moving forward with plans to launch ten new EV models by 2027. This includes the introduction of electric SUVs like the Urban Cruiser and C-HR+ in Europe, and the bZ3X in China. In the U.S., Toyota plans to begin production of its first three-row electric SUV in Kentucky and Indiana by 2026. Additionally, the company has started shipping batteries from its North Carolina facility, its first overseas in-house battery plant.
Toyota’s cautious approach comes amid increasing competition from Chinese automakers like BYD, which sold over 416,000 EVs in the first quarter of 2025 alone. Furthermore, global EV demand has been affected by factors such as a lack of affordable models, slow infrastructure development, and trade issues, leading several automakers to adjust their electrification strategies.
While Toyota continues to invest in EV development and production, the company acknowledges the need to adapt to regional market demands and global economic conditions. As Toyota President Koji Sato stated, the company is “beginning to see actual demand for EVs in each region” and will be reviewing its sales figures accordingly.
I am Muhammad Waqas and I am dedicated to promoting sustainable vehicles. Observing EV trends, studying the intricacies of the EV industry, and promoting new EV launches fall under my expertise. I have been working in this field for 5 years and making efforts for a sustainable and healthy future.
