The world’s largest automaker by sales initially said it would start building EVs in North America in 2025 at a plant in Kentucky. Now it plans to push that timeline to the first half of 2026, the outlet reports. The new timeline is partially due to changes to the model’s design, Nikkei said.
Toyota did not return a request for comment. Company spokesperson Scott Vazin confirmed the change on Thursday to Reuters, saying, "We've always said it would be late 2025 and it could creep into 2026 and it does look like it's going to creep into 2026."
The company plans to build a three-row electric SUV at its Kentucky plant. This body style has become increasingly popular among American consumers, but very few electric versions exist in the market.
Toyota announced a $1.3 billion investment in February to set up assembly lines for vehicles and battery packs at the Kentucky facility. The company also plans to start producing battery cells in North Carolina in 2025 to supply the Kentucky plant.
The delay comes as automakers rush to produce electric vehicles in North America. This push is partly due to a $7,500 federal government purchase incentive for plug-in vehicles. Only EVs built in North America qualify for this incentive, though leased EVs are eligible regardless of where they're made.
The Inflation Reduction Act of 2022 has also played a role in shaping the EV landscape. The act established tax credits that encourage domestic battery production, further incentivizing automakers to manufacture EVs in North America.
