Japan’s Toyota Motor Corporation has drastically cut its electric vehicle production target by 30% compared to previous plans, on the back of the slower EV uptake globally, Nikkei reported on Friday.
Toyota, one of the world’s biggest car manufacturers, now aims at rolling out 1 million EVs in 2026, down by 30% compared to its previous target, Nikkei’s reporters have learned.
The 2025 target for EV production is now at 400,000 units, according to the report.
Toyota has already notified its suppliers of its decision to scale back EV production, Nikkei reported.
The Japanese auto giant is the latest legacy carmaker to backtrack on pledges to significantly boost EV output, as the global EV market has markedly slowed its growth over the past year.
Earlier this week, Volvo Cars said that “changing market conditions and customer demands” had made it scrap its goal of going 100% electric by 2030. Instead, Volvo Cars will now aim for 90% to 100% of its global sales volume by 2030 to consist of electrified cars, meaning a mix of both fully electric and plug-in hybrid models.
EV demand has visibly softened over the past year, leaving legacy automakers in the U.S., Germany, and France struggling with an overcapacity of their EV models as they realize that the transition to fully electrified transportation will be taking longer than they thought.
Major carmakers in the U.S. and Europe are scaling back production of electric vehicles amid overcapacity and are rethinking their ambitious EV sales goals.
Rising concerns about EV capital costs, uncertainties around a number of elections this year, especially in the U.S., and a shortage of rapid-charging stations are the three key factors slowing the EV momentum, Goldman Sachs Research analyst Kota Yuzawa said in May.
Automakers have bet on hybrids amid the slowing EV demand.
Ford Motor Company, for example, said earlier this year it is delaying the planned rollout of some of its next-generation EVs as it is expanding hybrid vehicle offerings, in the latest sign that consumer uptake of EVs has slowed down.
ADVERTISEMENT
By Charles Kennedy for Oilprice.com
More Top Reads From Oilprice.com
- The Harsh Reality of the Global Energy Transition
- UAE’s State Oil Giant ADNOC Issues First-Ever Bond
- Controversy Surrounds Kazakhstan's Nuclear Referendum
