Toyota is ramping up its electrification efforts with plans to produce batteries for hybrids, plug-in hybrids, and full-electric vehicles at its new North Carolina factory starting in April.Â
The automaker is seeking to meet strong U.S. demand for hybrid vehicles, with an eventual goal of 30 GWh capacity by 2030. This will support the annual production of 40,000 to 50,000 EV or plug-in hybrid batteries per line.
In addition to the North Carolina plant, Toyota is establishing a new wholly-owned subsidiary in China to build EVs and batteries, as reported by the company’s quarterly earnings announcement. The Shanghai facility, set to open in 2027, will focus on Lexus EV production with an initial capacity of 100,000 vehicles annually.
Toyota is also adopting a cautious approach to potential new tariffs under President Donald Trump’s administration. CFO Yoichi Miyazaki emphasized the need to make decisions based on concrete policy developments rather than speculation as the company monitors ongoing tariff negotiations.
These announcements follow a 28% decline in Toyota’s operating profit for the fiscal third quarter ended December 31, 2024. This drop was attributed to production slowdowns and rising costs in key manufacturing regions. However, Toyota’s hybrid vehicle sales surged 27% in the same period, boosting the company’s overall performance.
Despite the profit decline, Toyota has raised its fiscal year profit forecast. It now expects an operating profit of ¥4.7 trillion ($29.9 billion), a 12% decrease from the previous year but better than earlier estimates. The company’s revenue rose 2.9%, reaching ¥12.4 trillion ($78.7 billion).
