The Japanese auto giant cited a need to ensure product quality as the primary reason for the schedule adjustment. The company aims to deliver improved products to consumers through this revised timeline.
The decision comes amid a broader industry slowdown in EV demand, prompting Toyota to reduce its global EV production target for 2026 by about 30 percent to around 1 million units, according to sources familiar with the matter.
Toyota had previously announced plans to invest $1.3 billion in its Kentucky plant for EV production, with an additional $1.4 billion earmarked for a second U.S. EV manufacturing site in Indiana, also slated to begin operations in 2026.
The global EV market, initially buoyed by strong sales from Tesla Inc. and China's BYD Co., has faced headwinds due to high costs and insufficient charging infrastructure. Toyota's decision also follows a series of quality control issues within its group, including data manipulation and the use of unapproved testing standards in Japan.
