Toyota may not sell 1.5 million EVs in 2026 after all
Toyota is facing uncertainty in the auto industry as Trump’s tariffs come into effect, leading to a potential hit on its profits. The Japanese automaker had ambitious plans to sell 1.5 million electric vehicles (EVs) by 2026, but recent developments may force the company to reconsider its targets.
Despite selling over 10.2 million vehicles, including Lexus, during the fiscal year, only 145,000 were fully electric models. This accounts for just 1% of its total sales, significantly lower than the global average of 14% of electric vehicle sales in 2024.
A report from Nikkei last September suggested that Toyota was planning to reduce its EV production targets by 20%, from 1.5 million to 1 million by 2026. The revised plans included building 400,000 EVs this year and reaching 1 million by 2026.
Following the release of its financial results for 2025, Toyota’s President, Koji Sato, and EVP, Yoichi Miyazaki, addressed the press regarding the impact of US auto tariffs and the company’s electric car sales. When questioned about the feasibility of selling 1.5 million EVs per year by 2026, Sato mentioned that the company is observing actual demand for EVs in each region and will be reviewing its figures accordingly.
Toyota has been known for its cautious approach towards electric vehicles, but the company has recently unveiled plans to launch ten new EVs by 2027 across its key markets. In Europe, Toyota introduced two new electric SUVs, the Urban Cruiser and C-HR+, alongside the updated bZ4X.
In the US, Toyota is set to start production of its first three-row electric SUV in Kentucky and Indiana next year. The company also initiated shipments of batteries from its NC facility, marking its first overseas in-house battery plant.
Moreover, Toyota launched its most affordable EV in China, the bZ3X, priced at just over $15,000. By mid-2026, the flagship Toyota bZ7 and Lexus ES EVs are expected to enter the Chinese market as part of Toyota’s strategy to regain market share in the world’s largest EV market.
Despite these efforts, Toyota faces tough competition from companies like BYD, which are rapidly expanding into new overseas markets. With BYD achieving impressive sales figures, Toyota must stay on track with its EV production targets to remain competitive in the evolving electric vehicle landscape.
In conclusion, Toyota’s plans to sell 1.5 million EVs by 2026 may face challenges, but the company’s recent initiatives and product launches demonstrate its commitment to electrification. By adapting to market demands and advancing its EV lineup, Toyota aims to secure its position in the growing electric vehicle market.
