Toyota is to delay the start of production of its first electric vehicle in North America until 2026 as demand for battery electric vehicles (BEVs) in the US fails to meet earlier expectations.

The Nikkei newspaper reported that Toyota has told suppliers that the start of production for the all-electric SUV at a factory in Kentucky will be delayed by several months – putting it in 2026 rather than late 2025. Some media reports say that Toyota has also cancelled plans to produce a Lexus brand SUV in North America by 2030.

Earlier this year, Toyota said it is moving ahead to prepare for assembly of an all-new, three row battery electric SUV in Kentucky and also investing in its Toyota Indiana facility for another electric SUV.

It also said it will supply US-made electric vehicles with lithium-ion batteries supplied by Toyota Battery Manufacturing North Carolina, a $13.9 billion facility slated to begin production in 2025.