May 30, 2026 – Toyota has reportedly scrapped plans for its next-generation all-electric sedan, a move that signals the automaker is pivoting away from the luxury EV segment in favor of more market-friendly body styles like SUVs.
The axed project was the production version of the Lexus LF-ZC, a sleek, low-slung coupe-style sedan that had been slated for launch in late 2026 before being pushed to mid-2027. The vehicle was designed around an integrated die-casting process using aluminum cast components, with manufacturing earmarked for Toyota’s Tahara plant in Aichi Prefecture.
Despite the cancellation, Toyota is not abandoning its electric ambitions entirely. The company confirmed that development of both gigacasting technology and all-solid-state batteries will continue, though it is now rethinking the broader direction of its EV lineup.
Toyota’s global EV sales reached 190,000 units in 2025, up 42% year-over-year, driven largely by refreshed models like the bZ4X and the China-market bZ3X, a budget-friendly offering that has found solid demand.
However, the external landscape has grown increasingly hostile. The Trump administration in the United States has rolled back EV purchase tax credits, while the European Union has walked back its 2035 ban on new internal combustion engine vehicles.
Toyota now views the luxury sedan segment as misaligned with current consumer demand. The company plans to redirect development resources toward SUVs and other high-demand categories, while reassessing its overall EV strategy for the next phase.
