Toyota Motor Corp (7203.T) is reviewing its plan to sell 1.5 million electric vehicles annually by 2026 as uncertainty rises in the global auto industry, particularly in the wake of new U.S. tariffs targeting Chinese-made good.
Despite reporting strong overall sales of more than 10.2 million vehicles, including its Lexus brand, during the fiscal year, the world’s largest automaker sold only 145,000 fully electric vehicles—just over 1% of its total output. That figure falls short of the global average, where electric vehicles accounted for about 14% of auto sales in 2024.
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In a press briefing following its fiscal 2025 results, President Koji Sato acknowledged the company’s electric vehicle goals may need to be reassessed in light of changing market dynamics. “We are beginning to see actual demand for EVs in each region,” Sato said. “We will be reviewing the figures.”
Toyota Executive Vice President Yoichi Miyazaki also addressed the implications of new U.S. tariffs introduced by the Biden administration on Chinese EVs and components, signaling potential disruptions to Toyota’s investment and production plans in the country.
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Last September, a report from Nikkei indicated Toyota had already informed suppliers it was reducing its EV production target from 1.5 million units to around 1 million by 2026, with an interim goal of 400,000 vehicles in 2025. The company has not officially confirmed a revised target but has hinted at a more flexible approach based on demand and trade conditions.
Long criticized for its slow transition to fully electric models, Toyota has recently accelerated EV development. It plans to introduce ten new electric models globally by 2027. In Europe, Toyota unveiled the Urban Cruiser and C-HR+ electric SUVs, which will join the updated bZ4X in its regional lineup.
See also:Toyota Delays Japan EV Battery Plant Amid Slower Demand, Higher Costs
In the U.S., production of a three-row electric SUV is set to begin next year in Kentucky and Indiana. Toyota also started battery shipments from its North Carolina facility in April, marking its first in-house battery production site outside Japan.
In China, the automaker launched the budget-friendly bZ3X earlier this year with a starting price of around $15,000. The bZ7 and Lexus ES electric models are slated for release in mid-2026 as Toyota attempts to regain ground in the world’s largest EV market.
Source: Nikkei