Toyota Delays US-Built EVs, Adjusts Strategy Amid Market Shifts

‘s plans for U.S.-built electric vehicles have hit a speed bump. According to a report from Nikkei, the Japanese automaker is pushing back its timeline for American-made EVs by several months, reflecting ongoing challenges in the electric vehicle market.

Kentucky and Indiana Plants Face Setbacks

The company’s initial goal was to start producing a three-row all-electric SUV in Georgetown, by the end of 2025. That’s now been delayed to early 2026. Additionally, another electric SUV slated for production in Princeton, Indiana, is now scheduled for later in 2026.

These delays come despite Toyota’s significant $2.7 billion investment in these new U.S. facilities. The company’s reasoning? They’re tweaking the three-row EV’s design in response to slowing electric vehicle sales in the American market.

Lexus Plans Scrapped, Battery Plant on Track

In a surprising move, Toyota has also reportedly scrapped plans for a U.S.-built Lexus EV that was originally targeted for 2030. However, it’s not all bad news – the automaker’s North Carolina battery plant is still on schedule to begin operations in 2025, aiming to supply future Toyota EVs.

Ambitious Global Goals Remain

Despite these setbacks, Toyota isn’t backing down from its ambitious EV targets. The company still aims to move 1.5 million EVs globally by the end of 2026. For the U.S. market specifically, Toyota hopes to have up to seven all-electric vehicles on sale by 2026.

“We anticipate the additional five EVs will be mostly SUV models, especially larger ones, but we do expect an electric Tacoma pickup of some sort to come to the U.S. eventually as well,” a company spokesperson noted.

Current EV Offerings

As it stands, Toyota’s electric vehicle lineup in the U.S. is limited to just two models: the Toyota bZ4X and its luxury sibling, the Lexus RZ 450e. Both are SUVs, highlighting the company’s focus on this popular vehicle segment.

EVXL’s Take

Toyota’s decision to delay its U.S. EV production plans reflects the broader challenges facing the electric vehicle market. While the shift towards EVs continues, it’s clear that automakers are having to adapt their strategies in real-time.

This situation mirrors recent developments we’ve seen with other manufacturers. For instance, in our Ford coverage, we’ve reported on similar production adjustments and strategy shifts. It’s becoming increasingly clear that the path to widespread EV adoption isn’t as straightforward as many had hoped.

What are your thoughts on Toyota’s EV strategy? Do you think they’re making the right move by delaying production, or should they be pushing forward more aggressively? Share your opinion in the comments below.​​​​​​​​​​​​​​​​


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Haye Kesteloo
Haye Kesteloo

Haye Kesteloo is the Editor in Chief and Founder of EVXL.co, where he covers all electric vehicle-related news, covering brands such as Tesla, Ford, GM, BMW, Nissan and others. He fulfills a similar role at the drone news site DroneXL.co. Haye can be reached at haye @ evxl.co or @hayekesteloo.

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