Market Chatter: Toyota Halts Development of Lexus Next-Gen EV, Shifts Focus to SUVs Amid Weakening Global Demand
Toyota Motor (TYO:7203) will halt development of a mass-production version of the Lexus LF-ZC sedan, a next-generation electric vehicle originally intended to utilize advanced gigacasting technology, Nikkei Asia reported on Friday.The automaker is pivoting toward SUVs and other models as EV sales slow worldwide, with production initially scheduled for late this year but then delayed to mid-2027 at a plant in Aichi Prefecture, the news agency said.Despite Toyota's global EV sales rising 42% in 2025 to over 190,000 units-boosted by the revamped bZ4X SUV and the China-only bZ3X-the broader market now faces significant challenges, the publication said.These include the Trump administration's removal of EV purchase tax incentives and the European Union's reversal of its planned 2035 ban on new internal combustion engine vehicles, the report said.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)