Toyota Motor will postpone the start of electric-vehicle production in North America to the first half of 2026 due to design adjustment and slowing EV sales, the Nikkei business daily reported on Thursday.

The Japanese automaker recently told suppliers the start date for production of its first battery EV model at its factory in the U.S. state of Kentucky – a three-row SUV – will be delayed by several months, the Nikkei said.

Production is now likely to begin in early 2026 rather than late next year, Toyota spokesperson Scott Vazin said.

“We’ve always said it would be late 2025 and it could creep into 2026 and it does look like it’s going to creep into 2026,” Vazin said.

He said Toyota planned to introduce five to seven battery electric vehicle models in the U.S. over the next two years.

Supply disruption and governance issues had prompted Toyota to delay the start of U.S. EV production by six months to around June 2026, sources previously told Reuters.

The automaker aimed to manufacture electric SUVs under its luxury Lexus brand in North America by 2030 but has scrapped that plan in favour of shipping completed vehicles to the U.S. from Japan, the Nikkei also reported on Thursday.

Toyota in February invested $1.3 billion in its Kentucky facility for its electrification effort.