Toyota is making a major push into the electric vehicle (EV) market, aiming to launch around 15 new EV models by 2027 and scale up production to 1 million units annually. This initiative reflects the company’s evolving strategy to meet growing global demand for cleaner transportation and compete more directly with leading EV manufacturers.

Currently, Toyota produces five EV models in Japan and China. To reduce risk from tariffs, currency fluctuations, and shipping delays, the company plans to diversify its production across five countries—including new manufacturing sites in the United States, Thailand, and Argentina. This move not only shortens delivery times but also improves Toyota’s ability to respond to regional market needs.

The upcoming lineup will include both Toyota and Lexus models, expanding offerings across different segments and price points. Despite ambitious plans, Toyota has revised its initial target for 2026, lowering production expectations to 800,000 units—roughly half of what was originally projected.

Sales of EVs remain a small portion of Toyota’s overall volume, accounting for less than 2% of the company’s global vehicle sales in 2024. However, the automaker remains committed to long-term growth in the segment. Plans to reach 3.5 million EV units per year by 2030 are now seen more as aspirational milestones rather than fixed targets.

To support this transition, Toyota is investing heavily in both vehicle and battery manufacturing. New facilities in North America and China are expected to add thousands of jobs and increase production capacity significantly. In the U.S., a $14 billion battery plant is under construction, with production set to supply local EV assembly lines starting this year.

Toyota is also exploring advanced production methods to improve efficiency. One such method—gigacasting—involves creating large sections of a vehicle’s body with single-piece aluminum castings, streamlining manufacturing and reducing costs. Although Toyota has yet to release a vehicle using this method, the company is adapting it with its own engineering expertise.

In addition to the shift in technology and scale, Toyota is moving away from its earlier EV naming system, opting instead to use familiar names from its existing lineup. This change aims to strengthen brand recognition and align new electric models with consumer expectations.

By expanding its EV portfolio, investing in regional production hubs, and modernizing its manufacturing approach, Toyota is positioning itself for long-term relevance in a rapidly electrifying automotive market.