Toyota to partly cover supplier losses after halting EV development

Toyota will partly cover the losses that suppliers incurred after it halted the development of an electric vehicle, according to Nikkei Asia. The company aims to ease the burden on partners that had invested in the project.

The move reflects the effort by Toyota, one of the world's largest carmakers, to protect relationships across its supply chain as it adjusts its EV strategy. The wider auto industry is grappling with uncertainty over the pace of the shift to electric vehicles and future demand.

Toyota, long a proponent of hybrid technology, sees its decisions carry significant consequences for a broad network of suppliers and parts makers. The industry is watching closely for signals about the manufacturer's next steps on electric vehicles.