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Toyota is delaying new US-made electric SUVs, but there’s more to it

Toyota will not make electric SUVs in the US starting next year as planned. According to a new report, Toyota is delaying production of new electric SUVs in the US by several months. The company is blaming the holdup on slowing EV sales in the US, but are they really?

Why is Toyota delaying US-made electric SUVs?

A new Nikkei report claims Toyota is pushing back production of its all-electric three-row SUV in Kentucky until the first half of 2026.

Last May, Toyota announced plans to begin assembling the electric three-row SUV at its Georgetown, Kentucky plant in 2025. The Kentucky facility is Toyota’s largest manufacturing facility globally with up to 550,000 annual vehicle production.

Toyota invested over a billion in the facility to prepare it for the new electric SUV. However, the company recently informed suppliers it will be pushing back production by several months.

According to the report, the company is blaming slowing EV demand and growing hybrid sales in the US.

Toyota still expects EV adoption to climb in the US in the long term and will continue investing in next-gen batteries and other tech.

Toyota-delaying-electric-SUVs
Toyota Land Cruiser Se EV concept (Source: Toyota)

Meanwhile, Toyota is also scrapping plans to build new electric SUVs in North America under the Lexus brand.

The company planned to begin producing Lexus electric SUVs in the region by 2030, but new plans call for the vehicles to be shipped from Japan.

Toyota-delaying-electric-SUVs
2024 Toyota bZ4X (Source: Toyota)

North America is not the only market in which Toyota is delaying EV initiatives. The auto giant recently informed its supplier of plans to cut global EV production to around 1 million in 2026, down from 1.5 million.

Electrek’s Take

Although the report cites slowing EV sales in the US, many automakers are seeing sales surge with new models hitting the market.

GM surpassed rival Ford after electric vehicle sales climbed 60% in Q3. With over 32,000 EVs sold in the third quarter, GM is now on top of Ford through the first nine months of 2024. Ford still sold over 23,500 EVs in Q3 for a total of 67,689 in 2024. GM has now sold 70,450 electric vehicles in the US through September.

With its “EV for everyone” strategy finally unfolding, GM is starting to see the results. GM is seeing higher demand with new (competitively priced) models in popular segments, including the Chevy Blazer, Equinox, and Silverado EVs.

Other automakers, including Hyundai and Kia, are also seeing higher EV demand. Hyundai has sold over 30,000 IONIQ 5 models through September and will begin US production as early as this month.

Top comment by Harshit Malhotra

Liked by 17 people

These corporations are all self serving megalomaniacs and will not do the right thing until you arm twist them into doing the right thing. The reason china has such a high EV adoption and a very strong industry is because that country prioritized it and made it happen. Thats what needs to happen in US as well, but alas half the country here doesnt even believe in climate change and would rather listen to their fav politician/podcast bro than real scientists.

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Hyundai is opening its massive new EV plant in Georgia this year, where it will build new EVs, starting with the updated 2025 IONIQ 5. The new 2025 Hyundai IONIQ 5 has even more range, an improved design, and a Tesla NACS charging port.

Meanwhile, Kia is already gaining an edge with its three-row EV9 gaining market share in the US. With another 2,096 models sold last month, Kia EV9 sales reached nearly 16,000 in the US through September.

That’s even more than Toyota, with 13,577 bZ4X electric SUVs sold through September in the US.

So, are electric vehicle sales slowing in the US? Or is it just a lack of options from some automakers?

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Author

Avatar for Peter Johnson Peter Johnson

Peter Johnson is covering the auto industry’s step-by-step transformation to electric vehicles. He is an experienced investor, financial writer, and EV enthusiast. His enthusiasm for electric vehicles, primarily Tesla, is a significant reason he pursued a career in investments. If he isn’t telling you about his latest 10K findings, you can find him enjoying the outdoors or exercising

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