Toyota Halts Development of Lexus All-Electric Sedan

[Strategic Adjustment] Toyota has officially scrapped the mass production plan for the Lexus LF-ZC all-electric sedan.

Core Move: Premium EV Sedan Paused, Resources Shifted to SUVs

Due to sluggish global EV demand, the U.S. revoking tax credits, and the EU withdrawing its 2035 internal combustion engine ban, Toyota has decided to abandon the Lexus LF-ZC project, originally scheduled for mid-2027 launch. The vehicle was first unveiled in October 2023, with a targeted range of 1,000 kilometers.

Strategic Rationale: Low Sales Volume, Focus on High-Demand Models

Although Toyota’s EV sales reached 190,000 units in 2025 (up 42% year-over-year), this remains a small fraction of its ten-million-unit annual total sales. The company concluded that premium all-electric sedans currently do not align with market demand and will prioritize development of popular segments like SUVs.

Key Data: Technology Development Continues Uninterrupted

Toyota continues to advance next-generation EV core technologies, including solid-state batteries and aluminum mega-casting, readying them for deployment once market conditions improve.