As Toyota is welcoming its new CEO, with that, the company is moving its focus to electric vehicle production as well. The Japanese carmaker is making a huge change in its strategy for electric vehicles.
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Toyota is planning to manufacture above 2 lakh electric vehicles from the year 2026 onward in the United States annually. The count of the EVs production will be accounting for almost 20 percent of its output in the United States, along with China, Japan, and India.
As per the latest reports, the company is looking to supply 1 million units across the world every year by 2026.
Akio Toyoda, who is the outgoing CEO of Toyota, has adopted a conservative approach to the EV trend, and the current strategy is marked as a big move for the company.
The company revealed the reason for being conservative approach toward EVs is, not having enough infrastructure for EV charging stations worldwide to support the EV trend.
Currently, the company is also making another big move in the United States.
Toyota Electric SUVs Manufacturing in Kentucky
According to the Nikkei Business, Toyota is coming to the action of manufacturing electric SUVs, for both mid-sized and large-sized, in Kentucky.
The Japanese carmaker will be reforming its existing manufacturing plants to produce electric cars, along with gasoline-powered cars. The company is planning to manufacture ten thousand electric sports vehicles every month by the end of the year 2025.
The company is also in the process of building an approximately 1.3 billion electric battery plant in Liberty, which is expected to start by 2025.
The rise in Electric Vehicle Sales
Electric Vehicles’ popularity is continuously increasing in the United States. The US being a major automotive market for Toyota, shares 20 percent of Toyota’s worldwide sales.
In the year 2022, electric vehicle sales have risen by approximately 66 percent, which is a significant increase in the market share from 3.2% in 2021, as per JD Power.
The number of automakers, who are introducing their first electric vehicles, is also growing.
The newly introduced electric vehicles gave great options for the car shopper and the federal government also changed the tax credit eligibility criteria, which is a maximum of up to $7500 by the end of 2022.
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