Toyota Motor has cut its 2026 global production for electric vehicles by about a third due to a slowdown in demand.

Sources say Toyota now plans to produce around 1 million EVs. It originally planned to sell 1.5 million EVs in 2026. The company will include plug-in hybrids in the target as demand for those models is expected to grow.

Japan's biggest carmaker joins other automakers in reviewing EV strategies as demand slumps in Europe and the US.

Sweden's Volvo Cars earlier this month scrapped a plan to produce only electric vehicles from 2030.

Germany's Mercedes-Benz in February also indicated it would postpone a strategy to make all new-vehicles electric models by 2030.