Japan’s Toyota Motor Corp. has decided to postpone electric vehicle production in North America from 2025 to the first half of 2026. It also canceled plans to produce vehicles in North America. This is due to the slow growth of electric vehicles.
According to industry sources, the Nihon Keizai Shimbun reported on Monday that Toyota has decided to postpone production of its third-row electric sport utility vehicle (SUV) in southern Kentucky by several months from the previous plan. The plant is North America’s first electric vehicle production plant, with a total investment of about 1.3 billion U.S. dollars.
Toyota explains that the decision is due to some design changes to improve the quality of the vehicle. It is the first time that a Japanese automaker has revised and announced its plan to produce electric vehicles in North America.
“SUV production is likely to begin in early 2026,” Toyota spokesman Scott Bazin said, adding that production will begin at the Princeton, Indiana, plant at the end of 2026.
Toyota has also canceled production of new electric SUVs for its luxury Lexus brand in North America by 2030. Instead of producing vehicles in North America, it has decided to export finished vehicles in Japan to North America.
Toyota aimed to produce 1.5 million electric vehicles worldwide by 2026 in August, but adjusted its plan due to slowing demand for electric vehicles. It has already reportedly reduced its global electric vehicle production plan to 1 million units and delivered it to parts suppliers.
However, Toyota expects the North American electric vehicle market to grow in the long term. It plans to continue investing in this field in consideration of environmental regulations.
EJ SONG
US ASIA JOURNAL
