Toyota, one of the world’s leading automotive manufacturers, is accelerating its commitment to the electric vehicle (EV) market. The Japanese giant aims to triple its EV lineup to 15 models by 2027 and ramp up its annual production capacity to approximately one million units. This strategic move underscores Toyota’s dedication to sustainability and long-term competitiveness.
Expanding Global Production to Mitigate Risks
Currently producing EVs only in Japan and China, Toyota plans to diversify its production network by adding five new countries to its manufacturing operations. According to a report by Nikkei, the new production sites will include the United States, Thailand, and Argentina. This global expansion aims to shield Toyota from market fluctuations such as currency instability and international trade barriers like tariffs.
New Models for New Markets
Toyota’s expansion is backed by new model rollouts. In Thailand, the company is set to begin production of an electric version of its popular Hilux pickup truck in October. A similar production plan is also underway for Argentina. In the U.S., production of a three-row electric SUV will commence in 2026, with batteries supplied by Toyota’s newly built battery factory in the country.
In Japan, the C-HR+ SUV is expected to enter production in September, targeting markets in Europe, North America, and Japan. Additionally, Lexus is planning to launch a new-generation electric vehicle in August 2027. Toyota’s partner Subaru will also join the push, with a new electric SUV—co-developed with Toyota—scheduled to go into production in early 2026.
Affordable EVs for the Chinese Market
Toyota is tailoring its strategy for China by focusing on affordable EV models. The bZ3X SUV, launched in March with a starting price of around $15,100, stands as Toyota’s most budget-friendly electric offering. Developed in partnership with China’s Guangzhou Automobile Group (GAC), the model received over 10,000 orders within an hour of its debut.
Catching Up with the Competition
Despite selling 140,000 electric vehicles in 2024—a 34% increase from the previous year—Toyota still lags behind market leaders like Tesla (1.79 million) and BYD (1.76 million). To close this gap and retain its market share, Toyota plans to scale up production rapidly while offering a diverse range of EV models to appeal to a broader audience.
Initially, Toyota had set an ambitious target to sell 1.5 million EVs annually by 2026 and 3.5 million by 2030. However, slower-than-expected EV adoption has led the company to revise its projections. The new target for 2026 has been adjusted down to 800,000 units.