Japan’s Toyota Motor has reportedly reduced its electric vehicle (EV) production plans for 2026 by one-third, becoming the latest automaker to scale back EV ambitions amid declining demand.
Global sales of EVs, including fully electric and plug-in hybrid vehicles, grew by 20% in the first half of 2024, which is slower than anticipated, according to market research firm Rho Motion. In Europe, growth was just 1% during the same period.
Meanwhile, sales of hybrid electric cars, which offer a compromise between conventional combustion engines and full electrification, have increased.
Here’s how major carmakers have recently adjusted their electrification plans, listed chronologically:
TOYOTA
On September 6, Toyota, the world’s largest automaker, announced a reduction in its 2026 EV production target from 1.5 million to 1 million vehicles. Despite this change, Toyota affirmed its intention to produce 1.5 million EVs annually by 2026 and 3.5 million by 2030, though these figures are described as benchmarks rather than targets.
VOLVO CARS
On September 4, Volvo Cars abandoned its goal of becoming fully electric by 2030, revealing that it expects to offer some hybrid models at that time. The company now aims for 90-100% of its sales to be either pure EVs or plug-in hybrids, with up to 10% expected to be mild hybrids.
VOLKSWAGEN
Volkswagen, Europe’s largest automaker by sales, has not altered its 2030 targets, which include making EVs 70% of its European sales and 50% of sales in the U.S. and China. However, its group technology chief indicated in August that the company’s battery factory plans are flexible and will depend on EV demand.
FORD
In August, Ford reduced its planned annual capital expenditure for pure EVs from 40% to about 30% and announced the cancellation of a planned electric SUV. Additionally, the launch of a new electric version of its best-selling pickup has been postponed.
PORSCHE
In July, Porsche scaled back its EV goals, stating it could only achieve its previously set target of 80% all-electric sales by 2030 if demand and sector developments support it.
RENAULT
Renault had aimed for all of its sales to be fully electric by 2030, but in early 2022, CEO Luca De Meo revised this plan. As of July, De Meo expressed doubts about fully transitioning its European production to EVs within the previously set timeline.
GENERAL MOTORS
In June, GM lowered its EV production forecast for 2024 and, in July, refrained from reaffirming its target to produce 1 million EVs in North America by the end of 2025.
MERCEDES-BENZ
In February, Mercedes-Benz revised its forecast for EV sales to account for up to 50% of total sales by 2030, a five-year delay from its 2021 prediction. The company has also slowed its battery cell capacity plans due to weaker-than-expected EV demand.
BENTLEY MOTORS
Bentley had planned to offer an all-EV lineup by 2030, but in March, then-CEO Adrian Hallmark indicated that hybrids would likely remain available beyond that date.
ASTON MARTIN
In February, Aston Martin postponed the launch of its first EV due to low demand.
