Toyota lowers global EV production target by 30 percent for 2026

Like other manufacturers, Toyota has also been affected by the decline in demand for electric vehicles.

According to the latest report from the Japanese newspaper The Mainichi, Toyota has reduced its global production target for electric vehicles by 30 percent by the year 2026.

The company is now aiming to produce around 1 million units, compared to the original plan of 1.5 million EV units.

Toyota, previously characterized as a ‘stubborn’ manufacturer, changed their electrification strategy early last year when their president Koji Sato announced a sales target of 1.5 million EV units by 2026.

The global EV market initially experienced rapid growth, thanks to the popular models produced by Tesla and BYD.

However, sales in the zero-emission segment have been slow as they have failed to attract interest from other consumer groups beyond early adopters due to high costs and charging infrastructure issues.

Throughout 2023, Toyota managed to sell 104,000 EV units, a fourfold increase compared to the previous year.

This figure is significantly small when compared to the total vehicle sales exceeding 10 million units.

In comparison to EVs, Toyota’s hybrid vehicles have been well-received as they offer a more practical solution in driving carbon neutrality missions.

Despite the plans to decrease EV production, Toyota will respond to current market demand by increasing production numbers for plug-in hybrid vehicles.