NAIROBI, Kenya- The EV market is hitting a speed bump. Toyota, the world’s largest automaker, has announced that it’s pushing back the start date for electric vehicle (EV) manufacturing in the United States.
Initially slated to begin in late 2025 or early 2026, the Japanese automotive giant now expects to kick off production sometime in 2026, though a more precise timeline remains unclear.
This delay mirrors a broader slowdown in global demand for battery-powered cars, with other industry heavyweights like Volvo and Ford also scaling back their ambitious EV plans.
“We’re still focused on our global [battery electric vehicle] target of 1.5 million vehicles by 2026,” said Toyota spokesperson Scott Vazin, emphasizing that despite the revised U.S. production timeline, the company remains committed to its global EV goals.
In the next two years, Toyota plans to introduce between five and seven battery-electric vehicles in the U.S. market .
Toyota has already made significant investments toward its EV future. Earlier this year, the company announced a $1.3 billion investment in its Kentucky plant, where it will produce a three-row electric SUV.
But Toyota’s push comes during a tricky time for the global auto industry, as several major markets report cooling demand for electric cars. This slowdown has led other automakers to rethink their timelines and product offerings.
Toyota’s decision follows in the footsteps of Volvo and Ford, both of which have recently adjusted their EV strategies.
Last month, Volvo walked back its ambitious goal of producing only fully electric cars by 2030. Instead, the company now anticipates continuing to sell some hybrid models well into the next decade.
Market conditions, including softer demand and pricing challenges, were cited as reasons for the shift.
Ford, too, is hitting pause on some of its high-profile EV plans. In August, the company scrapped its highly anticipated three-row electric SUV and delayed the launch of its next-generation electric pickup truck.
Ford’s CFO, John Lawler, said these moves were necessary in response to “pricing and margin compression” as the company adjusts to changing market dynamics .
While the long-term trajectory for electric vehicles remains positive, with governments and consumers increasingly focused on sustainability, the industry is clearly experiencing growing pains.
