In keeping with innumerable automakers that are cutting back investment and production into electric vehicles, Toyota has become the latest to slow its EV output, according to a new report from Nikkei Asia.
The company "plans to significantly slow its production of electric vehicles", the report says, stating it'll cut global output for 2026 to just 1 million cars, about 30% less than previously expected.
Toyota has decided to reduce EV production due to a global market slowdown, informing its suppliers of the change. The company now plans to produce over 400,000 EVs by 2025 and aims to more than double output in 2026.
Toyota, which has prioritized hybrid vehicles, sold around 100,000 EVs in 2023 and 80,000 between January and July this year, the report says.
Despite its new 2026 forecast marking a significant rise in EV sales, production will slow compared to earlier plans.
Last May, Toyota announced a goal to sell 1.5 million EVs by 2026, intending to use the figure as a benchmark to strengthen its supply chain for batteries and other components.
The decision comes amid a cooling global EV market, as we have repeatedly written about here on Zero Hedge.
Global EV sales reached 9.7 million units in 2023, a 32% rise from 2022, though slower than the 65% growth seen the year prior.
According to Nikkei, Tesla's global sales dropped 7% in the first half of 2023 to 830,000 units, while China's BYD saw an 18% increase to 720,000 EVs, alongside a 40% jump in plug-in hybrid vehicle sales.
Other automakers are also adjusting their EV strategies, as we've noted.
Volkswagen is considering closing a German factory, General Motors has delayed production of large EVs by two years, and Ford halted the development of large electric SUVs.
Volvo scrapped its goal to be an all-EV maker by 2030. Among Japanese automakers, only Toyota has revised its EV plans, while Honda remains committed to producing only EVs or fuel cell vehicles by 2040.
