Report: Toyota plans to cut global electric vehicle production by one-third in 2026

According to Nikkei Business Daily, Toyota Motor Corporation of Japan has reduced its electric vehicle production plan for 2026 by one-third.

Toyota originally planned to produce 1.5 million electric vehicles in 2026, but has now adjusted the production plan to 1 million units.

With the slowdown in electric vehicle sales, Toyota has become the latest automaker to retract its electric vehicle plans, highlighting the challenges the company faces in its electrification transformation.

Following the announcement, Toyota's stock price remained relatively unchanged at 2,582 Japanese yen per share.

In a statement, Toyota stated, "The intention to produce 1.5 million electric vehicles annually by 2026 and 3.5 million electric vehicles annually by 2030 has not changed." However, the company clarified that these figures are not targets but benchmarks for shareholders.

Despite setting ambitious annual production targets for electric vehicles, Toyota's electric vehicle business is still in its early stages compared to its accumulated experience and market share in the hybrid field. Toyota sold only 104,000 electric vehicles last year, accounting for less than 1% of its total sales.

Earlier this week, Swedish automaker Volvo also abandoned its goal of achieving full electrification by 2030, stating that "some hybrid models are expected to remain in the product lineup by then."

Due to lower-than-expected consumer demand, U.S. automakers such as Ford and General Motors have also delayed or canceled new electric vehicle models