Toyota Kills Lexus LF-ZC Electric Sedan
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- Toyota canceled the Lexus LF-ZC electric sedan, originally unveiled as a concept at the 2023 Japan Mobility Show with a planned 2026 production date later pushed to mid-2027.
- A Toyota spokesperson confirmed the cancellation to Automotive News, citing "fluctuations in market demand and the workload associated with vehicle planning and manufacturing," while Nikkei pointed to a "global slump in EV sales" and US policy changes under the Trump administration.
- The LF-ZC was set to debut gigacasting (three-part body construction), high-performance prismatic batteries promising roughly twice the range of traditional EVs, and an AI-powered "Arene OS" digital cockpit.
- Toyota's EV sales still climbed 42% last year to 190,000 units, with the bZ ranking as the third-best-selling EV in the US in Q1 behind the Tesla Model Y and Model 3.
- The Lexus TZ three-row electric SUV, unveiled less than a month ago, remains on track to go on sale later this year alongside the Toyota Highlander BEV.
- Toyota is the latest Japanese automaker to scrap a major EV project, following similar moves by Honda and Nissan, while Chinese rival BYD sold a record 160,000+ vehicles overseas last month and is launching the Racco kei EV in Japan and Dolphin G DM-i plug-in hybrid in Europe.
- The LF-ZC was central to Toyota's stated goal of having Lexus sell 1 million EVs annually by 2030 and become an EV-only brand by 2035.
Why it matters: Toyota's cancellation of a flagship luxury EV — its latest in a long string of delays and scrapes — directly undermines its public commitment to make Lexus EV-only by 2035 and sell 1 million Lexus EVs annually by 2030. With Honda and Nissan also pulling back and BYD accelerating overseas expansion (160,000+ vehicles last month), Japanese automakers risk ceding the global EV market to Chinese rivals they already depend on for core technology.
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