In the realm of electric vehicle (EV) production, Toyota has decided to delay the production of its new electric SUVs in the United States (U.S.). The company is pushing back the start of production at its Georgetown, Kentucky plant to the first half of 2026, several months later than initially planned.

According to Nikkei Asia, Toyota had originally intended to begin manufacturing its first locally built EV, a three-row crossover SUV, in the second half of 2025. The company invested over $1 billion in its Kentucky plant, Toyota’s largest manufacturing plant globally, to prepare for this new electric model. However, recent communications with suppliers indicate a shift in the timeline.

The automaker cites “production preparation issues” as the primary reason for the delay. However, industry insiders suggest that slowing EV demand in the US market may also be a contributing factor. This move comes as part of a broader industry trend, with several automakers reassessing their EV strategies in response to fluctuating consumer demand and ongoing challenges with charging infrastructure.

In addition to delaying U.S. production, Toyota is reportedly reconsidering its EV lineup for North American manufacturing. Plans to produce new Lexus electric SUVs in the region by 2030 have been scrapped, with the company now intending to import these vehicles from Japan.

On a global scale, Toyota has informed suppliers of plans to reduce its 2026 EV production target from 1.5 million units to around 1 million. Despite these adjustments, the company maintains its long-term commitment to electrification, aiming to launch 10 new EV models worldwide by 2026.

Toyota has seen a surge in hybrid vehicle sales, which increased by 21% to 2.6 million units in the first eight months of the year, accounting for 37% of the company’s global volume.

Toyota’s cautious approach to full electrification appears to be paying off in the current market conditions. The company’s global EV sales, while still modest, have shown significant growth, climbing 48% to 97,058 units through August 2024.

Toyota is not alone in reconsidering its EV strategy. Other major automakers, including General Motors, Ford, Volvo, and Nissan, have also announced delays or cancellations of EV plans. These decisions reflect the industry’s struggle to balance ambitious electrification goals with current market realities.

Despite the delays and adjustments, Toyota remains committed to its long-term electrification strategy. The company continues to invest in next-generation battery technology and other EV-related innovations. As the market evolves and consumer preferences shift, Toyota’s flexible approach may position it well to adapt to changing conditions in the automotive industry.

Read More: Toyota Scales Back 2026 EV Production Target By 30% Amid Market Slowdown

The coming years will be crucial for Toyota and other automakers as they navigate the complex landscape of EVadoption, balancing technological advancements with market demand and regulatory requirements.

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