Toyota to cut EV production targets by a third - reports

A Toyota logo is shown at the North American International Auto Show in Detroit. The recent slowdown in the sale of electric cars has coincided with an uptick in the sale of hybrid vehicles for the manufacturer.

Toyota is reportedly to cut its global production target for EV production by a third.

According to reports from the Nikkei market in Japan this morning the car giant will see a cut for the 2026 global EV production to around 1 million vehicles, down from a previously announced sales plan of 1.5 million.

In May, Toyota revealed new prototypes of its internal combustion engines capable of running on hydrogen, along with petrol and other fuels, as it sought to move towards more carbon reducing technologies.

The recent slowdown in the sale of electric cars has coincided with an uptick in the sale of hybrid vehicles for the manufacturer.

The Japanese manufacturers have long been criticised for hesitating to fully embrace electrification.

Earlier this week, Volvo abandoned its plans to only produce fully electric cars by 2030, having only announced their initial target in 2021.

While the EV maker had prided itself on its unwavering confidence in going for full EV sales by 2030, it decided to follow other automakers on Wednesday and instead now aims for 90% of its sales by then to be a mix of plug-in hybrids and EVs.

"We have seen that this transition is going to take a little bit longer than we had first thought when we first made those targets," CEO Jim Rowan told Reuters.

Slowing demand for EVs, partly due to a lack of affordable models, as well as the effects of EU, U.S. and Canadian tariffs on electric cars made in China, have made market conditions increasingly difficult for automakers.

Christina Bu, head of Norway's EV association, said she was not surprised by Volvo's decision to dampen its near-term electrification goals.

"They are following after quite a few other automakers who have gone out with similar statements earlier, so it's not too surprising," Bu said.

She echoed the need for strong and long-term political support for the EV transition. "Strong policies are still necessary to be able to get this transition to work", she told Reuters.