Toyota is preparing for its profits to take a big hit this year as Trump’s tariffs take effect. With uncertainty rising in the auto industry, Toyota said it’s “reviewing” its plans to sell 1.5 million EVs by 2026.
Toyota may not sell 1.5 million EVs in 2026 after all
Although Toyota sold over 10.2 million vehicles, including Lexus, during the fiscal year, only 145,000 were fully electric models.
That’s still only about 1% of its total sales. In comparison, roughly 14% of global vehicle sales were electric in 2024.
A Nikkei report last September claimed that Toyota had notified its suppliers of plans to cut EV production plans by 20% from 1.5 million to 1 million by 2026. The new plans included building 400,000 EVs this year and 1 million by 2026.
After releasing its fiscal year financial results for 2025, Toyota’s President, Koji Sato, and EVP, Yoichi Miyazaki, spoke with the press about the new US auto tariffs and electric car sales.
When asked, “Will the company reconsider its global sales plan of 1.5 million electric vehicles (EVs) per year by 2026?” Sato said the company is “beginning to see actual demand for EVs in each region,” adding, “We will be reviewing the figures.”
It’s no secret by now that Toyota has been notoriously slow and one of the most outspoken about going all-in on electric vehicles.
However, over the past few months, the Japanese auto giant has revealed several new electric vehicles and supporting tech that could help it get back in the game.
Toyota plans to launch ten new EVs by 2027 across its most important markets. In Europe, Toyota revealed two new electric SUVs, the Urban Cruiser and C-HR+, which will join the updated bZ4X.
Next year, Toyota will begin building its first three-row electric SUV for the US in Kentucky and Indiana. In April, Toyota also began shipping batteries from its NC facility, its first overseas in-house battery plant.
In March, Toyota launched its most affordable EV in China, the bZ3X, starting at just over $15,000 (109,800 yuan). By mid-2026, the flagship Toyota bZ7 and Lexus ES are set to launch in China as it looks to recapture market share in the world’s largest EV market.
Earlier this year, the Toyota bZ4X was the top-selling EV in Norway, a leading electric car market. With several new EVs on the way, can Toyota turn things around and compete with BYD and other EV leaders?
If the company continues pushing back sales goals, it’s unlikely. Meanwhile, BYD and others are quickly expanding into new overseas markets.
Source: Nikkei
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