Toyota sharply cuts EV car production
Japan's Toyota Motor Corporation has slashed its electric vehicle production target by 30% from previous plans, due to the slowing uptake of electric vehicles globally, Nikkei reported on Friday.
Toyota, one of the world's largest automakers, now aims to launch 1 million electric vehicles in 2026, a 30% reduction from its previous target, Nikkei journalists reported. The EV production target for 2025 is now 400,000 units, according to the report.
Toyota has already notified its suppliers of the decision to reduce electric vehicle production, Nikkei reported.
The Japanese auto giant is the latest automaker to backtrack on a pledge to significantly boost electric vehicle production, as the global electric vehicle market has significantly slowed its growth over the past year.
Earlier this week, Volvo Cars said that “changing market conditions and customer demands” had led it to abandon its goal of becoming 100% electric by 2030. Instead, Volvo Cars will aim to so that 90% to 100% of global sales volume by 2030 will consist of electrified cars, i.e. a mix of fully electric and plug-in hybrid models.
Demand for electric vehicles has visibly softened over the past year, leaving traditional automakers in the United States, Germany and France struggling with an overcapacity of electric models as they realize that the transition to more fully electrified will take longer than they thought.
Major automakers in the United States and Europe are reducing electric vehicle production due to overcapacity and are reconsidering their ambitious EV sales goals. Growing concerns about the capital costs of electric vehicles, uncertainties related to a series of elections taking place this year, especially in the United States, and the shortage of fast charging stations are the three key factors slowing the momentum of electric vehicles, Kota Yuzawa, an analyst at Goldman Sachs Research, said in May.
Automakers have turned to hybrids as demand for electric vehicles slows.
Ford Motor Company , for example, said earlier this year that it is delaying the planned launch of some of its next-generation electric vehicles while expanding its hybrid vehicle offerings, in the latest sign of the slowdown in growth. consumer adoption of electric vehicles.
Thanks to our Telegram channel you can stay updated on the publication of new Economic Scenarios articles.
The article Toyota sharply cuts EV car production comes from Economic Scenarios .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/toyota-taglia-seccamente-la-produzione-di-auto-ev/ on Fri, 06 Sep 2024 15:51:20 +0000.