Toyota to Produce Electric Cars in U.S. as Early as 2025: Report


Toyota has been lagging in the transition to electric vehicles, but its incoming president, Koji Sato, hinted he would make the pivot to EVs a priority. Per recent reports, this will be evident in the U.S., which could see domestic production of Toyota electric cars as early as 2025.

Nikkei Asia reported Feb. 21 that Toyota will start producing electric vehicles in Kentucky as early as 2025. The company will reportedly use an existing factory that will allow it to produce electric cars alongside combustion-powered vehicles. By the end of 2025, the veteran carmaker is reportedly looking to produce 10,000 electric SUVs monthly.

Toyota’s EV production at its Kentucky plant is expected to work alongside the automaker’s battery plant, slated to start operations in North Carolina around 2025.

With this setup, Toyota could make its electric vehicles in the U.S., allowing the company to capitalize on government incentives in the Inflation Reduction Act.

Toyota is reportedly looking to produce about 200,000 electric cars in the U.S. per year starting in 2026. The company is reportedly planning to supply around 1 million electric cars annually by that time as well.

While Toyota stands as the world’s largest automaker by volume today, the company is lagging significantly in EVs. Toyota sold 10.5 million vehicles worldwide in 2022, but only about 24,000 of those were electric---including vehicles sold under the company’s luxury Lexus brand.

In comparison, electric vehicle leader Tesla sold around 1.31 million all-electric cars worldwide in 2022.

The EV industry is poised to grow in the coming years, with LMC Automotive, a British market research firm, forecasting global EV sales could reach 36.71 million units in 2030.

We thank Teslarati for reprint permission.

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