en.Wedoany.com Reported - Toyota has canceled the mass production plan for the next-generation battery-powered Lexus sedan, which was originally intended as the production version of the Lexus LF-ZC concept car, designed to showcase the company's most advanced electric and manufacturing technologies. This streamlined electric sedan, unveiled in 2023 and positioned to compete with the BMW i3, was initially scheduled to start production this year, later postponed to 2027. Nikkei Asia first reported the project's complete suspension, and Toyota subsequently confirmed the news to Automobilwoche.
Toyota has not abandoned the related technologies themselves. The company continues to develop gigacasting manufacturing techniques and solid-state batteries, both of which are closely associated with the canceled sedan. Toyota is reassessing which models offer the greatest commercial value for these innovations.
In the current market environment, buyers continue to flock to SUVs, making it difficult for traditional luxury sedans, especially in the electric vehicle segment, to gain traction. According to Nikkei Asia, if Toyota eventually launches a next-generation electric vehicle incorporating these advanced technologies, it is highly likely to be an SUV model.
This adjustment comes against the backdrop of growing Toyota electric vehicle sales. In 2025, Toyota's global EV sales increased by 42%, exceeding 190,000 units. Models like the updated bZ4X and the China-market bZ3X drove demand, but the global market environment is challenging, especially in North America. The cancellation of federal EV incentives in the U.S. and shifting political sentiment in Europe towards phasing out the 2035 internal combustion engine ban are forcing automakers to reassess previously overly aggressive electrification plans.
Toyota is not alone. Over the past two years, as the growth rate of electric vehicles has slowed, multiple manufacturers have postponed, scaled back, or canceled electrification projects. Honda recently retreated from parts of its 0 Series electric vehicle strategy, leading to nearly $16 billion in expenditures and write-downs.
Lexus has not completely abandoned electric vehicles. The luxury brand is still developing a flagship electric coupe, intended as the successor to the V10-powered LFA and positioned as the counterpart to Toyota's upcoming V8-powered GR GT.
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