Toyota will focus on developing local production and supply chains in China and the United States to boost electric vehicle sales.
The new President and CEO of Toyota Motor Corporation (TMC), Koji Sato, revealed the Japanese automaker’s plans in the electric vehicle market (EVs).
Toyota remained the top-selling automaker in the world for three consecutive years in 2022. However, the rise of battery electric vehicles (BEV) might threaten Toyota’s crown. The Japanese automaker has been a little late in joining the BEV race. This year, though, Toyota appears to have realized the potential of BEVs in the auto industry.
Earlier this month, TMC announced the launch of 10 new BEVs with a target sales goal of 1.5 million units by 2026. Toyota aims for significant growth in the BEV market. It is a smart move, considering that BEVs might be the future of the whole auto industry. Many countries are choosing to phase out internal combustion engine vehicles and support clean, energy-efficient cars.
Part of Toyota’s strategy for growth includes localization in China and the United States.
“In areas where there is an acceleration in the shift towards battery EVs, like China and the US, we need to be bold with local production,” said Toyota’s new CEO in a group interview over the weekend.
China’s Place in the BEV Market
The Chinese auto market is the world’s largest vehicle market, making it a prime target for Toyota’s goals. China is vigorously supporting clean energy vehicles, including BEVs and plug-in hybrids.
Japanese automakers posted the sharpest sales decline in China against foreign brands. The Financial Times attributed Toyota’s sales decline to its slow rollout of BEVs. FAW Toyota and GAC Toyota in China ranked 9th and 10th—respectively—in the China Passenger Car Association’s (CPCA) list of Top 10 Chinese automakers by retail sales. For comparison, Tesla–which only sells BEVs–ranked 7th place.
The CPCA reported Toyota’s 23.5% year-over-year (YoY) decrease in sales in January–including ICE and BEV sales. By February, Toyota reported a decline of 12.2% YoY in sales, with a slight increase of 0.9% year-to-date (YTD). Lastly, in March 2023, Toyota sold 136,400 units in China, down 18.5% YoY. Its sales volume in China by the end of Q1 2023 was 379,900, down by 14.5% YoY.
The US IRA’s Impact on the BEV Market
The United States has also shown full support for battery electric vehicles, specifically with the Inflation Reduction Act (IRA). The IRA provides incentives to support BEV production within the United States or any country with a free trade agreement with the US. It also includes tax credits for BEV purchases.
The IRA has significantly affected the BEV market worldwide since it passed. Many companies outside of the United States have already started working with American companies to build BEV components in the United States. For instance, South Korean battery supplier LG Energy Solutions is working on the construction of battery production facilities in the United States with Ford and Tesla.
Toyota Motor North America (TMNA) reported saw an uptick in electrified vehicle sales in the first quarter. In March, electric vehicles made up 27.5% of TMNA’s total sales volume. TMNA sold a title of 469,558 vehicles in Q1 2023, down by 8.8% by a volume and daily selling rate (DSR) basis. It sold approximately 118,836 elective vehicles, accounting for 25.3% of total sales volume.
“With 22 electrified vehicle options between both the Toyota and Lexus brands, the most among any automaker, we’re giving customers a choice that fits their lifestyle, pocketbook and needs,” said Jack Hollis, TMNA’s executive vice president of sales. “We continue to make improvements to our vehicle inventory to satisfy customer demand, while doing all we can to exceed expectations as we introduce more electrified vehicles throughout the balance of 2023.”
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Tesla plans to boost production at its Gigafactory Berlin plant in Germany following a sharp rebound in sales and demand in Europe after a softer 2025.
The plans put Tesla in a better position to compete with strengthening companies in Europe and potentially other markets; demand indicators show Tesla is much better off than in 2025.
Last year was a tough year for Tesla in terms of overall demand in Europe. The company produced over 200,000 vehicles at the German plant last year, a soft figure compared to the 375,000 vehicles Tesla lists as its current capacity at the factory.
🚨 Tesla said this morning it will ramp up production at Gigafactory Berlin to a volume of 7,500 vehicles per week.
This is a 20 percent boost in production. Tesla will hire 1,000 new employees to help with the increase.$TSLA pic.twitter.com/kravKfRO5n
— TESLARATI (@Teslarati) June 25, 2026
Tesla’s overall European sales dropped significantly last year due to a variety of factors. However, sales are rebounding, and demand is strong once again, and only getting stronger. Tesla is now planning to bump production of Model Y vehicles at Giga Berlin upward by about 20 percent. It will also bring 1,000 new jobs to the plant.
Tesla confirmed the details of its planned production expansion in Germany this morning. It is a strategy to keep up with strengthening demand.
In Q1, Tesla saw a record 61,000 vehicles produced at Giga Berlin. European registrations rebounded sharply, with Model Y seeing 117 percent increases in March 2026 compared to last year. Germany alone saw stark increases, with a quadrupling in registrations to 9,252 units.
This trend continued in other key European markets, including France, Denmark and Sweden. Tesla registrations were up over 46 percent in some of these markets, and Model Y continued its trend as a top BEV in the market.
Demand has been recovering strongly in 2026, giving Tesla a reason to expand production efforts at the factory. These increases signal management’s confidence in sustained or growing European pull for Berlin-built vehicles.
Tesla is being sued by the family of the woman who was killed in a Texas crash involving a Model 3. The driver, who is also being sued, claimed the vehicle was operating on Autopilot mode, but Tesla executives have come out challenging that claim, stating that the driver of the vehicle overrode the system.
The lawsuit was filed by 76-year-old Martha Avila’s daughter and her husband, who allege a “design defect” involving a Tesla and a failure to warn. The suit alleges negligence against Tesla and the driver, Michael Butler.
Butler “stated he was operating with an automated driving assistance system engaged at the time of the crash,” the Harris County Sheriff’s Office said in a statement. He showed no signs of intoxication and was cooperative, the Sheriff’s Office said, according to NBC News.
Just after reports of the crash and numerous headlines that immediately blamed Tesla’s Autopilot suite, both Tesla CEO Elon Musk and Head of AI Ashok Elluswamy challenged that. Musk said the crash made “no sense” given that Tesla Autopilot and Full Self-Driving do not travel at the speeds the door cameras captured the car traveling at, which Tesla says was 73 MPH.
Tesla finally clarifies fatal Texas crash, confirms driver manually overrode acceleration
Elluswamy also revealed that Tesla data showed Butler overrode the system by pressing the accelerator to 100%, and that the pedal was compressed fully even after the car had crashed. Tesla has not released this data to the public, likely because it is communicating with agencies like the NHTSA on an investigation.
The suit uses a Washington Post analysis of government data that “identified at least 17 fatal incidents linked to Tesla Autopilot.”
This is far from the first time an accident has been blamed on Autopilot. A fatal crash in Texas was blamed on Autopilot several years ago, but when Tesla released data to the NTSB, which was investigating the crash, Autopilot was not available where the crash occurred, and Autosteer was never enabled, meaning the car was manually controlled at the time of the accident.
“Application of the accelerator pedal was found to be as high as 98.8 percent,” the NTSB said in their findings. The highest recorded speed in the five seconds leading up to the impact was 67 miles per hour. The area where the crash occurred is residential, and Texas State laws… pic.twitter.com/XGD97NHVZ2
— TESLARATI (@Teslarati) March 18, 2026
More information on the accident will be released as Tesla works with agencies to find the cause of the crash. From personal experience, it is hard to imagine Tesla Autopilot or FSD operating in this manner. It drives sometimes too cautiously in residential areas in parking lots, at least in my experience. Speeding happens, but at this rate in this type of area, it is hard to believe.
We look forward to more details being released with time.
The Insurance Institute for Highway Safety (IIHS) has awarded the 2025-2026 Tesla Cybertruck crew cab pickup its highest honor: Top Safety Pick+. This marks the Cybertruck as the only full-size pickup to achieve this distinction in recent evaluations.
The award applies specifically to vehicles built after April 2025, following structural upgrades including front underbody reinforcements and footwell modifications.
These changes enabled strong performance in updated crash tests. The Cybertruck earned “Good” ratings in the small overlap front (driver and passenger sides), updated moderate overlap front, and updated side tests—core requirements for the Top Safety Pick+ designation.
It also secured acceptable or good headlights across trims and a “Good” rating for its standard front crash prevention system in pedestrian scenarios, along with acceptable or good performance in vehicle-to-vehicle testing.
The Cybertruck avoided every single pedestrian collision, including:
- Daytime child crossing
- Nightitime adult crossing
- Night parallel adult
In IIHS pedestrian front crash prevention tests, @Cybertruck avoided every single collision – daytime, nighttime & different angles
It was also the only pickup to earn Top Safety Pick+ (highest award) in 2026https://t.co/BNPqT9TbsW pic.twitter.com/M6nwDisBFK
— Tesla (@Tesla) June 24, 2026
In the large pickup category, competitors such as the Toyota Tundra received only a standard Top Safety Pick, while the Ford F-150 and Ram 1500 did not qualify for either award. This positions the Cybertruck as a standout in occupant protection and crash avoidance among its peers.
Credit: IIHS
Ironically, the same vehicle celebrated for superior U.S. safety performance remains banned from public roads in the United Kingdom and much of Europe. Regulators there cite the Cybertruck’s sharp external edges and highly rigid stainless-steel construction as failing pedestrian-protection standards. European and UK rules require rounded surfaces on protruding parts to minimize injury risk in collisions with vulnerable road users.
Critics also point to the truck’s substantial weight and unyielding body structure, which some argue could transfer more force to other vehicles or pedestrians rather than absorbing it.
Tesla’s engineering philosophy underpins the Cybertruck’s strong IIHS results. The vehicle features a distinctive stainless-steel exoskeleton made from ultra-hard 30X cold-rolled stainless steel. This provides exceptional structural rigidity and a robust safety cage that resists deformation in side impacts and rollovers.
Engineers designed integrated load paths to channel crash forces away from the occupant compartment while allowing controlled energy absorption in key zones. Post-April 2025 refinements to the front underbody further optimized performance in overlap crashes.
Complementing the passive structure is Tesla’s advanced active safety suite, including the standard Collision Avoidance Assist system with automatic emergency braking. This contributed directly to the vehicle’s strong front crash prevention scores. The skateboard platform and low center of gravity also enhance stability and handling, reducing the likelihood of certain crashes.
The IIHS recognition highlights how Tesla’s combination of high-strength materials, structural innovation, and software-driven safety systems can deliver top-tier protection in rigorous testing. While global regulatory differences on design and pedestrian interaction continue to limit the Cybertruck’s availability outside North America, its U.S. safety credentials set a new benchmark for full-size pickups.
Tesla plans production boost at Giga Berlin following rebound in Europe
Tesla and driver sued by family of woman killed in Texas crash: what we know
