Toyota Shares Plunge 6.65% as Global EV Forecast Slashed by 30%

Toyota Motor Corp. (TM) has recently found itself navigating a series of strategic recalibrations amidst a broader slowdown in the global electric vehicle market. The automaker's shares have declined for four consecutive days, culminating in a 3.07% drop, marking an aggregate decrease of 6.65% over the past four days.

Despite the rapid growth of the global electric vehicle (EV) market, Toyota is experiencing considerable headwinds. The company has announced a significant reduction in its 2026 global EV production forecast from 1.5 million units to 1 million units, a 30% decrease. This decision has been communicated to its component suppliers.

Toyota's new target involves producing over 400,000 electric vehicles by 2025 and then doubling that figure in the following year. The firm has historically channeled much of its innovation efforts towards hybrid technology, which is reflected in its 2022 sales of just around 104,000 electric vehicles, representing a mere 1% of its global sales.

This adjustment places Toyota among other notable automakers who are also revising their EV ambitions. Recently, Volvo relinquished its goal of selling only all-electric vehicles by 2030, opting instead to include hybrid models. Similarly, automakers in the United States like Ford and General Motors have either delayed or scrapped new electric vehicle launches.

Meanwhile, Toyota maintains a strong interest in hydrogen technology. On September 5th, Toyota announced a collaboration with BMW for co-developing hydrogen fuel cell systems, with plans to launch the first products by 2028.