Toyota set to ramp up production of electric SUVs in the US by 2025

As the demand for zero-emission electric vehicles surges, Toyota has finally decided to join the movement by beginning production of electric SUVs in the US. After falling far behind the industry over the past several years, insisting on a hybrid approach rather than going all in on fully electric vehicles, Toyota has significant ground to make up.

To catch up with competitors, Toyota’s longtime CEO, Akio Toyoda, is passing the baton to Lexus chief branding officer Koji Sato. Set to take the reins on April 1, 2023, Sato has addressed the situation, claiming Toyota is committed to building better cars through “concrete actions and products, such as accelerating the shift to electrification.”

See also: New Toyota CEO Plans to Boost Battery-Electric Offerings with Focus on Lexus Brand

Last week Sato built on that promise, announcing that the “time is right” to begin accelerating battery electric vehicle development with a “new approach.” According to a new report from Nikkei Business, the new approach Sato is referring to may include Toyota manufacturing electric SUVs in the US as early as 2025.

Toyota has already invested $3.8 billion in a battery plant in North Carolina that’s expected to become operational in 2025, allowing for complete production and assembly, so why not? Producing electric SUVs in the US would allow Toyota to streamline production and get EVs into customers’ hands quicker while avoiding expensive transport fees.

If Toyota is serious about ramping up EV production, manufacturing them in the US would be a big step. Toyota is striving to reach 1 million in electric vehicle sales globally by 2026, according to Nikkei. However, a spokesperson from Toyota said the details in the report have not been announced by the company and that no decision has been made on when to begin US-based EV production.

See also: All-electric Lexus LFA *might* get a manual transmission

After selling a mere 1,220 units of its first electric SUV, the bZ4X, in the US last year, Toyota could use some help scaling production. By manufacturing electric SUVs in the US, Toyota aims to capture a piece of the booming market and achieve its target of 1 million EV sales by 2026.