Toyota Decides To Delay Construction Of Electric Car Factory In Japan

Illustration of the Toyota car factory. (Photo: Toyota Motor Corp)

Japanese automotive manufacturer Toyota has reportedly again postponed the construction of an electric vehicle factory in Fukuoka Prefecture, Japan. This decision reflects the company's caution in reading the market conditions of global electric vehicles which are experiencing a slowdown.

Launching from Electrive, Tuesday, November 12, the postponement is the second for the electric car factory project in Fukuoka. Initially, the construction of this facility was scheduled to start soon and is expected to be operational in 2028.

However, the schedule has now been postponed to an undetermined time. Toyota is known to have poured around 6 billion yen in preparation for the factory's location.

Internal sources said global demand for electric vehicles was still not in line with the company's expectations. Most of Toyota's electrification vehicle sales are still dominated by hybrid models, while pure electric cars (BEVs) are relatively small.

Fukuoka Prefecture Governor Seiaro Hattori stated that the location agreement, which was previously scheduled to be signed in April, has now been abolished until the fall. Even so, there is no certainty whether the factory's operational target for 2028 will be delayed for longer.

Toyota menegaskan bahwa meskipun proyek ini terunda, rencana pembangunan tetap akan dilanjutkan. Perusahaan kini tengah meninjau jenis kendaraan yang akan diproduksi serta kapasitas produksi yang sesuai dengan kondisi pasar.

In the first half of fiscal year 2026, Toyota and its luxury brand, Lexus, have sold about 5.2 million vehicles globally, an increase compared to the same period the previous year. Of these, about 2.47 million units are electrified vehicles, including hybrids.

This delayed move confirms that while Toyota continues to invest in the electric vehicle sector, companies are choosing a more realistic approach. Their focus is now more focused on developing hybrid technology and a more flexible production strategy to deal with rapid changes in the global market.

The main reason behind this decision is said to have come from the market conditions of electric vehicles that are still too dynamic and difficult to predict. Especially, related to consumer preferences and the development of battery technology.