Toyota is set to make a big thrust into the electric vehicle (EV) segment. The Japanese car behemoth is targeting its EV range to grow to 15 models by 2027, and produce 1 million electric cars annually.
This bold step is Toyota’s more aggressive foray into the global battery electric vehicle (BEV) market. In a report by Nikkei Asia, the new model range will not only be under the Toyota brand but will also feature electric vehicles from its luxury marque Lexus.
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Global Expansion Strategy
Toyota currently makes five electric vehicle models, mostly for the Chinese and Japanese markets. To reach its 1 million-unit target, Toyota will increase EV production to the United States, Thailand, and Argentina. This international strategy is set to:
- Reduce tariff and currency risks
- Speed up delivery times
- Support growing EV demand in regional markets
In the U.S., Toyota will begin local production of a three-row electric SUV in Kentucky and Indiana starting 2026, with batteries sourced from new local facilities. Meanwhile, in Europe, Toyota is preparing to launch three electric SUVs – including a new version of the bZ4X, the C-HR+, and the Urban Cruiser. Production of the C-HR+ is set to begin in September 2025 in Japan.
Toyota will also produce an electric Hilux pickup in Thailand, aiming to rival the BYD Shark. In China, the brand recently launched its most affordable EV yet – the bZ3X, which gained huge popularity with over 10,000 orders in just one hour.
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Lexus and Subaru Enter Electric Competition
Toyota’s high-end brand Lexus will also be a major contributor. The new-generation Lexus EVs will start production in 2027 at the Japanese Tahara plant. Concurrently, Subaru, in partnership with Toyota, will introduce a new electric SUV produced at the Yajima plant for markets in North America, Europe, and Japan.
Strong Sales, But Still Behind BYD
Toyota’s electric vehicle sales were up 34% from last year at approximately 140,000 units. Nevertheless, it remains far behind Chinese EV giant BYD, which sold 166,000 units in one month alone. During Q1 2025, BYD sold a combined 416,388 EVs.
Toyota wants its expanded range of EVs to enable it to catch up with competitors in the coming years
Solid-State Battery Development
An important component of Toyota’s EV plan for the long term centers on solid-state battery technology that will be first seen between 2027 and 2028. The state-of-the-art batteries hold promises to:
- Charge extremely fast at about 10 minutes
- Allow driving up to 1,200 km
- Provide improved safety and longer lifespan for batteries
This technology may bestow on Toyota a substantial edge in the efficiency and performance of EVs if it’s successful.
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Conclusion
Toyota is going all-in on electric vehicles, aiming for 15 EV models and 1 million units per year by 2027. With global production, solid-state battery tech, and support from Lexus and Subaru, Toyota is preparing to compete seriously in the EV market. The competition is tough, but Toyota’s strong foundation could turn the tide in its favor.
