Wedoany.com Report-May 9, Toyota, the Japanese automaker, is reassessing its target of selling 1.5 million electric vehicles (EVs) annually by 2026 due to anticipated challenges from new U.S. tariffs and shifting market dynamics. The company, which reported sales of over 10.2 million vehicles, including Lexus, in its 2025 fiscal year, noted that only 145,000 were fully electric, representing about 1% of its total sales. In contrast, global EV sales accounted for approximately 14% of vehicle sales in 2024.
In September 2024, a Nikkei report indicated that Toyota had informed suppliers of a potential 20% reduction in EV production, adjusting its 2026 target from 1.5 million to 1 million units, with plans to produce 400,000 EVs in 2025. Following the release of its 2025 fiscal year financial results, Toyota’s President, Koji Sato, and Executive Vice President, Yoichi Miyazaki, addressed the impact of U.S. tariffs and EV sales plans during a press conference.
When questioned about the 1.5 million EV sales goal, Sato stated: “We are beginning to see actual demand for EVs in each region. We will be reviewing the figures.” This reflects Toyota’s cautious approach to EV adoption, as the company has historically prioritized hybrid and other technologies over fully electric models.
Despite its slower transition to EVs, Toyota has recently introduced initiatives to strengthen its electric vehicle portfolio. The company plans to launch 10 new EV models by 2027 in key markets. In Europe, Toyota unveiled two electric SUVs, the Urban Cruiser and C-HR+, which will complement the updated bZ4X. In the U.S., Toyota will start production of its first three-row electric SUV in 2026 at facilities in Kentucky and Indiana. Additionally, in April 2025, Toyota began shipping batteries from its North Carolina plant, its first overseas in-house battery facility.
Toyota’s bZ4X achieved notable success in Norway, a leading EV market, where it was the top-selling electric vehicle earlier in 2025. These developments signal Toyota’s intent to expand its EV presence, though meeting ambitious sales targets remains challenging amid competition from companies like BYD, which are rapidly growing in global markets.
The review of Toyota’s EV strategy highlights the company’s efforts to balance market demands with economic factors, such as tariffs, while investing in new models and production capabilities to support sustainable mobility.
