Toyota Cuts EV Production Plans

(Reuters) – Japan’s Toyota Motor (NYSE:TM) has reportedly slashed its electric vehicle production plans for 2026 by a third, the latest automaker to roll back EV plans amid slowing demand.

The global sales of EVs – either fully electric or plug-in hybrid – rose 20% in the first half of 2024, slower than expected, data from market research firm Rho Motion showed. Europe saw only 1% growth in the same period.

Sales of hybrid electric cars, seen as a more affordable compromise between all-combustion and all-electric, have meanwhile increased.

Carmakers Adjust Expectations

These carmakers have recently tempered their expectations (in chronological order starting with the most recent):

TOYOTA

The world’s biggest automaker plans to build 1 million EVs in 2026, compared with its earlier announced sales target of 1.5 million, the Nikkei business daily reported on Sept. 6. Toyota stated there was no change to its intention to produce 1.5 million EVs per year by 2026 and 3.5 million by 2030 but clarified that these figures were benchmarks for shareholders.

VOLVO CARS

The Swedish automaker scrapped on Sept. 4 its target of going all electric by 2030 and indicated it expects to still offer some hybrid models at that time. Volvo aims for 90-100% of cars sold by 2030 to be pure EVs or plug-in hybrids, while up to 10% would be mild hybrids.

VOLKSWAGEN

Europe’s largest automaker by sales hasn’t changed its 2030 targets for EVs to comprise 70% of sales in Europe and 50% in the U.S. and China, despite warnings of slowing demand. However, its group technology chief noted in August that VW’s battery factory building plans depend on EV demand.

FORD

In August, Ford (NYSE:F) reduced the share of planned annual capital spending on pure EVs to about 30% from 40%, increasing its emphasis on hybrids. The company announced the cancellation of a planned electric SUV and delayed a new electric version of its best-selling pickup.

PORSCHE

In July, the German premium carmaker moderated its EV ambitions, stating it could meet its prior aim of 80% all-electric sales by 2030 only if there is sufficient demand and development in the EV sector.

RENAULT

In early 2022, CEO Luca De Meo initially guided for all of Renault’s vehicle sales to be fully electric by 2030. However, two years later, brand CEO Fabrice Cambolive stated that Renault’s strategy would involve both EVs and combustion-engine cars for the next decade, extending beyond 2030. De Meo also voiced uncertainty about the timeline for fully transitioning European production to EVs.

GENERAL MOTORS

In June, GM trimmed its EV production outlook for 2024 and in July refrained from reiterating its goal to produce 1 million EVs in North America by the end of 2025.

MERCEDES-BENZ

The German luxury brand indicated in February that EVs, including hybrids, would account for up to 50% of total sales by 2030, pushing back its forecast from 2021 by five years. Mercedes-Benz has also slowed its battery cell capacity plans due to lesser-than-expected EV demand.

BENTLEY MOTORS

Bentley had initially aimed for an all-EV lineup by 2030, but in March, then-CEO Adrian Hallmark mentioned that hybrids would likely still be available after that date.

ASTON MARTIN

The British automaker postponed the launch of its first EV in February due to low demand.