Toyota Scales Back EV Ambitions, Targets 1M Units by 2027

Toyota Motor Corp. (NYSE: TM) plans to develop approximately 15 electric vehicle (EV) models by 2027, aiming to produce around 1 million EVs annually, according to Japan’s Nikkei newspaper. The move signals a recalibration of its earlier targets as the automaker navigates market challenges and global policy shifts.

Currently, Toyota manufactures five in-house EV models, limited to production facilities in Japan and China. However, the company is exploring expansion into the United States, Thailand, and Argentina. This strategic shift is intended to mitigate risks tied to tariffs and currency fluctuations while reducing delivery lead times.

Some of the upcoming models will be part of the Lexus luxury lineup, aligning with Toyota’s broader electrification strategy. While the company had initially aimed to sell 1.5 million EVs per year by 2026 and 3.5 million by 2030, those figures are now positioned more as benchmarks for stakeholders than concrete targets.

In 2026, Toyota now expects to produce about 800,000 EVs—nearly 50% less than originally planned, the report added. Despite this cutback, Toyota continues to push forward in the EV race as part of its long-term sustainability goals.

In 2024, Toyota sold nearly 140,000 electric vehicles globally, a 33% increase from the previous year. However, EVs still represent under 2% of its total global sales of over 10 million vehicles.

Toyota declined to comment on the Nikkei report, stating that the information had not been officially announced by the company. As the global automotive market shifts toward electrification, Toyota’s updated EV production goals reflect a more measured approach amid intensifying competition and evolving consumer demand.