The Japanese carmaker has always been vocal about its reluctance to go fully electric and focusing on hybrids instead
The EV production plans of Toyota in the U.S. have hit a setback as the Japanese auto giant announces delays. Among other things, the recent slowdown in EV demand is perhaps the key reason for this measure. Note that Toyota is investing $1.3 billion in its Kentucky manufacturing facility to enable EV production. However, it recently told its suppliers that the start date has been postponed by several months.
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Toyota EV Production Plans in U.S.
According to a recent report by Nikkei Asia, Toyota has even cut down its plans of selling 1.5 million EVs globally by 2026 to 1 million. This comes after the recent slump in the demand for electric cars. In fact, many other legacy carmakers have been backtracking on their ambitious plans of going fully electric in the coming years. It seems like hybrids are gaining popularity yet again. We already know that Toyota is among the top players in that regard.
It has always said that we need hybrids to enable a smooth and effective transition to EVs from ICE cars. Nevertheless, it was always criticized for that opinion. After the recent months, it certainly looks like Toyota might have been right all along. Staying in the present, Toyota cited a design change to its upcoming 3-row vehicle as a reason for the delay. Remember, the Kentucky plant was allegedly supposed to make the next-generation EVs with a new chassis.
This also hints at the cancellation of the new electric SUV under its luxury arm, Lexus. The original plan was to launch a Lexus luxury SUV in North America by 2030 from its Kentucky facility. Now, it will be shipped from Japan. As for the 3-row SUV which was to be launched in 2025, we might see it in the flesh in mid-2026. It was temporarily known as the bZ5x. It was to rival the likes of the mighty popular Kia EV9 and the upcoming Hyundai Ioniq 9.
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Learn Electric Cars Says
It is evident that most carmakers are facing the heat from the irregular EV demand across the U.S., China and Europe. It is looking imminent that carmakers will have to tweak their plans and strategy to sustain their business amidst the current turmoil. One good thing for Toyota is that it was never too heavily invested in EVs, to begin with. Hence, it can alter the plans and deadlines without losing much. I shall keep an eye out for more details in this regard.
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