NAGOYA, May 29 – Toyota Motor Corp. has decided to halt development of a next-generation electric vehicle model under its luxury Lexus brand, sources close to the matter said Friday.
The decision is believed to reflect a slowdown in the global electric vehicle market, although the automaker still plans to continue developing related advanced technologies for future products.
The canceled model is the mass-produced Lexus LF-ZC EV, which had been scheduled to enter production in 2027. The vehicle, which boasted fast charging capability and extended driving range, was unveiled at the Japan Mobility Show in October 2023.
Toyota’s global EV sales in 2025 rose 42.4 percent from a year earlier to more than 190,000 vehicles, with the automaker seeing strong sales of models such as the Toyota bZ4X. But the EV market has faced headwinds, including the U.S. government’s elimination of tax incentives for EV purchases.
Other Japanese automakers have also overhauled their EV strategy, with Honda Motor Co. abandoning its target of switching entirely to EVs or fuel cell vehicles by 2040.
Toyota plans to continue developing cutting-edge technologies such as all-solid-state batteries, which are expected to extend EV driving range, and gigacasting, a manufacturing process that uses aluminum casting machines to produce single-piece components.
“We will respond swiftly to changes in the times and customer needs while striving to build cars that exceed customer expectations,” Toyota said in a statement.
