KATHMANDU: Toyota Motor has halted development of the next-generation Lexus electric sedan as the company shifts focus towards SUVs and other high-demand vehicle segments amid slowing global EV sales.
According to Nikkei Asia, Toyota has stopped plans for the production version of the Lexus LF-ZC concept sedan. The model was expected to use advanced gigacasting technology and was initially scheduled for production by late 2026 before being delayed to mid-2027.
The vehicle was planned for production at a factory in Aichi Prefecture, Japan.
Despite the decision, Toyota will continue research on gigacasting and solid-state battery technology for future EV projects. The company is also considering using these technologies in SUVs and other more popular vehicle categories.
Toyota’s global EV sales increased 42 percent in 2025, crossing 190,000 units. Growth was supported by models including the updated bZ4X SUV and the China-focused bZ3X.
However, the global EV market has recently slowed due to weaker demand and policy changes in major markets. The report says Toyota believes luxury electric sedans currently do not match market conditions.
