Toyota Motor Corporation has unveiled ambitious plans to boost its electric vehicle (EV) production capacity sevenfold by 2027, intending to launch 15 new EV models developed in-house. This strategic move is driven by the increasing regionalization of the global economy, prompting Toyota to diversify its supply chains and expand local production capabilities.
Currently offering five EV models, Toyota aims to broaden its manufacturing footprint from Japan and China to include the United States, Thailand, and Argentina. This expansion to five countries mitigates foreign exchange and tariff risks while streamlining logistics to improve customer delivery times.
Toyota has outlined specific production plans for different markets. Thailand will see an electric pickup truck manufacturer based on the popular Hilux model. The U.S. market is slated for a three-row SUV, while Japan will produce the next-generation C-HR+ SUV and Lexus electric vehicles. Toyota plans to develop cost-effective EV models in China and increase local component sourcing to maintain competitiveness in the price-sensitive market.
In a related development, Subaru, a Toyota Group company, has initiated production of a new electric SUV at its Yajima plant. The company is gearing up to expand production to North America, Europe, and Japan.
Despite temporary adjustments to some production plans and delays in battery factory construction, Toyota remains bullish on the long-term growth prospects of the EV market. The automaker has set an ambitious target of 3.5 million annual EV sales by 2030, planning to achieve this through in-house EV production and OEM model supply.
Furthermore, Toyota is accelerating the development of a flexible global production system. This approach aims to adapt to local demand fluctuations in various countries swiftly, positioning the company to navigate the evolving landscape of international trade.
