Investing.com — Japan’s Toyota (NYSE:TM) Motor (LON:TYT) plans to scale back its electric vehicle production, reducing its global output target for 2026 to 1 million units, about 30% lower than the previously stated forecast for the same year, Nikkei reported on Friday.
This is largely driven by a slowdown in the global EV market, and Toyota has informed its parts suppliers of the change.
“Under the new plan, Toyota aims to produce a little more than 400,000 EVs in 2025 and to more than double production the following year,” the report said.
Although the updated forecast still reflects a substantial increase in EV sales, it marks a slowdown compared to the automaker’s earlier projections.
Toyota, which has focused on hybrid vehicles, sold around 100,000 EVs in 2023 and about 80,000 units from January to July this year.
The automaker’s previous plan, announced last May, aimed to achieve global EV sales of 1.5 million units by 2026. The goal was to prepare the company’s supply chain for the expected growth in the EV market, the report said.