Toyota Motor will delay the launch of its first electric vehicle (EV) production in North America until the first half of 2026, pushing back its original 2025 timeline. The decision affects its Kentucky plant, where Toyota had planned to build a three-row electric SUV, part of a $1.3 billion investment. The automaker cited design adjustments as a key factor in the delay.
This move reflects broader challenges in the U.S. market, where EV sales growth has slowed. While Toyota aims to launch 10 new EV models globally by 2026, it now plans to produce around 1 million EVs worldwide that year, down from its initial 1.5 million target. Consumers’ preference for more affordable hybrids has also contributed to this shift.
Despite this, Toyota remains optimistic about long-term EV growth in North America, though the company has canceled plans to locally produce electric SUVs under its Lexus brand by 2030. The revised strategy aligns with broader industry trends, as competitors like Honda also navigate evolving market demands and government incentives.
