Toyota will not manufacture electric sport utility vehicles (SUVs) in the US starting next year as planned. According to a newly released report, Toyota is pushing back production of its latest electric SUV models in the US by several months. The corporation claims to attribute the delay solely to declining electric vehicle (EV) sales in the United States, but do they really take sole responsibility for it?
Toyota’s decision to delay the production of its US-made electric SUV is reportedly linked to ongoing chip shortages and supply chain disruptions. Despite efforts to mitigate these issues, the company has elected to prioritize quality over meeting an initially planned launch date.
According to a newly released report, Toyota has accelerated plans to restart production of its electric, three-row SUV model at its Kentucky facility, with a projected timeline for resuming manufacturing set for the first half of 2026.
In a move to bolster its electric vehicle lineup, Toyota announced plans to commence production of its forthcoming all-electric three-row SUV at its Georgetown, Kentucky facility in 2025. Toyota’s largest global manufacturing facility, located in Kentucky, produces up to 550,000 vehicles annually.
Toyota has invested more than $1 billion in its facility to prepare it for the production of its new electric SUV. Despite the recent surge in knowledge sharing among corporate partners, suppliers are expected to delay production by several months.
According to the report, the company attributes its struggles to declining electric vehicle demand and a surge in hybrid sales in the US market.
As Toyota anticipates a steady increase in US electric vehicle (EV) adoption over time, it is well-positioned to continue investing in cutting-edge battery technology and innovative solutions.
Toyota may be shelving plans to build new electric SUVs under the Lexus brand in North America.
The company has decided to produce Lexus electric SUVs in the region by 2030, but new plans now call for the vehicles to be shipped from Japan instead.
Toyota’s electric vehicle (EV) strategy isn’t being driven solely by North American market demands. The automotive giant has recently informed its suppliers that it intends to significantly reduce global EV production to approximately 1 million units by 2026, a decrease from the previously projected 1.5 million.
Electrek’s Take
Despite a slowdown in US electric vehicle (EV) sales, numerous manufacturers are experiencing a surge in demand driven by the introduction of new models.
General Motors eclipsed longtime rival Ford after electric vehicle sales surged 60% in the third quarter. Within the first nine months of 2024, General Motors has taken the lead in electric vehicle sales, boasting over 32,000 units sold during the third quarter alone, surpassing its rival Ford. Despite this, Ford managed to deliver more than 23,500 electric vehicles (EVs) during the third quarter, bringing its total to a substantial 67,689 in 2024. General Motors has delivered approximately 70,450 electric vehicles in the United States as of September.
As General Motors’ “EV for everybody” strategy finally bears fruit, the company begins to reap the rewards. General Motors is experiencing a surge in demand driven by its newly introduced competitively priced fashion options across popular segments, bolstered by the success of vehicles like the Chevrolet Blazer, Equinox, and Silverado Electric Vehicles.
Automakers, including those partnering with Hyundai and Kia, are experiencing surging demand for electric vehicles. Hyundai has sold more than 30,000 units of its IONIQ 5 model through September, with plans to begin domestic production in the United States as early as this month.
Hyundai is set to open its massive new electric vehicle manufacturing facility in Georgia later this year, where it will produce brand-new EV models, starting with the updated 2025 Hyundai IONIQ 5.
The all-new 2025 Hyundai Ioniq 5 boasts a significantly enhanced design, paired with a cutting-edge Tesla NACS charging port for unparalleled convenience.
Meanwhile, Kia has established a lead by successfully capturing a significant market share in the US with its pioneering three-row EV9. Kia has reported a significant milestone in its electric vehicle (EV) sales, with over 16,000 units sold in the United States through September alone, alongside an additional 2,096 models offered during the month.
Toyota has significantly outpaced its rivals, having sold a substantial 13,577 units of its innovative bZ4X electric SUV in the US market as of September.
Are U.S. electric vehicle sales plateauing? Is it merely a scarcity of innovative electric vehicle models offered by certain manufacturers that’s driving the market’s slow growth?
