Toyota has reported record-breaking global sales and production figures for the fiscal year ending March 31. This remarkable achievement has been attributed to robust demand and the alleviation of semiconductor supply constraints that have plagued the industry in recent times.

However, amidst this success, Toyota has announced a strategic adjustment in its electric vehicle (EV) production plans. The company plans to delay the commencement of EV production in the U.S. to prioritize product safety and quality following a series of scandals involving its group companies, as reported by the Mid Japan Economist newspaper.

Despite this adjustment, Toyota’s fiscal year performance remains impressive. Parent-only global sales surged by 7.3%, surpassing the milestone of 10 million units for the first time and reaching 10.31 million units year-on-year. Additionally, its output increased by 9.2% compared to the previous year, totaling 9.97 million units.

However, Toyota faced challenges in March, experiencing a decline in both sales and production. This decline has been attributed to intense competition in the Chinese auto market, the largest globally. Sales dropped by 2.1% compared to the previous year, reaching 897,251 units, while output decreased by 10% to 807,026 units.

Despite these challenges, Toyota reported a significant surge in global battery electric vehicle (EV) sales for the fiscal year ending in March, increasing more than threefold to 116,654 units.

Looking ahead, Toyota’s adjustment in EV production timelines is noteworthy. The company intends to postpone EV production in the U.S. to spring 2026, delaying it from the original plan of 2025. This strategic move aims to introduce a “pause” period in operations, prioritizing quality and safety assurance, as highlighted in the newspaper report.