Toyota is delaying construction of its battery plant in Japan
Toyota is delaying construction of its battery plant in Fukuoka due to slower-than-expected growth in demand for electric cars.
Here's What We Know
According to local governor Seitaro Hattori, an agreement on the exact site was supposed to be finalised in April. However, this deadline has been pushed back to autumn, which is likely to affect the launch date of the facility as well. The plant was expected to start operating in 2028, but the delay could push back that date as well.
Nikkei Asia reported that Toyota still intends to build the facility. However, the company is reconsidering what exactly will be produced there. The plant was originally planned to produce batteries for Toyota's next generation of electric vehicles, including models with a range of up to 1,000 kilometres.
Back in 2022, Toyota announced that it aimed to sell 1.5 million electric vehicles a year by 2026. Then the target was adjusted to 1 million in 2028, and recently dropped again, now to 800,000 units. The company isn't giving up on electric cars, but it is adjusting its expectations from a turbulent market.
Earlier this month, Toyota created a new Chinese subsidiary of Lexus that will develop and produce electric cars and batteries at a plant in China. The Shanghai plant will produce several models exclusively for the Chinese market.
Source: Nikkei Asia
