Toyota Motor Corporation is planning to significantly expand its electric vehicle (EV) portfolio, aiming to introduce 15 in-house-developed models by 2027. The move, reported by Nikkei and Reuters, underscores a strategic shift as the global automotive industry intensifies its transition towards sustainable mobility.
Although Toyota has not officially confirmed the full details of the expansion, the reported targets reflect the company’s broader efforts to meet evolving consumer demand and regulatory expectations in key markets worldwide, including the Gulf region.
Expansion Strategy
Currently, Toyota offers five EV models manufactured in Japan and China. To diversify its production footprint and mitigate risks associated with tariffs, currency fluctuations, and delivery times, Toyota is planning to expand manufacturing operations to the United States, Thailand, and Argentina. This decentralised approach is expected to strengthen the brand’s global supply chain resilience at a time when localisation of production is becoming increasingly critical.
The expanded lineup will include new models across both Toyota and Lexus brands. While detailed specifications of the upcoming models have not been disclosed, the plan signals a notable acceleration in Toyota’s EV strategy, traditionally considered more conservative compared to its competitors.
Revised Production Targets
In parallel with its model expansion, Toyota is adjusting its production forecasts. While the company previously set a goal of selling 1.5 million EVs annually by 2026 and 3.5 million by 2030, Reuters reports that Toyota has recently revised its 2026 production target down to approximately 800,000 units. This adjustment reflects a more measured growth trajectory as Toyota navigates the complexities of global EV adoption rates, supply chain dynamics, and market-specific consumer behaviour.
Despite the revised short-term targets, Toyota’s long-term ambitions remain significant. In 2024, the company sold approximately 140,000 EVs globally, marking a 33% increase year-on-year. However, EVs still represent less than 2% of Toyota’s total global sales, highlighting both the scale of the challenge ahead and the potential for growth.
Toyota is historically a dominant brand in certain regions such as the Gulf. So it is likely to play a key role as regional demand for EVs grows, supported by expanding charging infrastructure and government incentives.
While specific details on model availability for the Middle East have not been confirmed, Toyota’s increased global EV production capacity suggests that a broader range of models could become accessible to consumers in the UAE and Saudi Arabia within the coming years.
Industry-Wide Implications
Toyota’s decision to broaden its EV lineup reflects wider trends in the global automotive industry. Competitors such as Tesla, BYD, and Volkswagen have aggressively expanded their EV portfolios, prompting traditional automakers to adapt more rapidly than previously anticipated. Toyota’s move to accelerate its EV strategy suggests a recognition that leadership in future mobility will depend not only on hybrid technologies, where the company has historically excelled, but also on a robust pure-electric offering.
Nevertheless, the company continues to position its EV goals as shareholder benchmarks rather than rigid targets, emphasising a pragmatic approach that balances ambition with operational realities.
Toyota’s plan to triple its electric vehicle lineup by 2027 marks a pivotal moment in the company’s evolution. Although the road ahead will involve challenges, including achieving production targets and adapting to regional market needs, the expansion underscores Toyota’s commitment to aligning with the global shift towards sustainable mobility.
