Toyota's pronouncement came a day after General Motors (GM) - Get Free Report and Honda (HMC) - Get Free Report canceled their proposed partnership to develop more affordable electric vehicles. The goal of the partnership was to create and sell EVs for less than $30,000 by 2027.

But the EV environment isn't feeling as lucrative to automakers as it once did.

“After extensive studies and analysis, we have come to a mutual decision to discontinue the program. Each company remains committed to affordability in the EV market,” GM spokesman Darryll Harrison told CNBC. “Each company remains committed to affordability in the EV market.”

Toyoyta unveiled a series of concept EVs during the Japan Mobility Show Oct. 26. Bloomberg/Getty Images

GM on the same day said that it was delaying the production of its coming EV lineup, which includes the Chevy Equinox EV, Chevy Silverado EV and GMC Sierra Denali EV. GM CEO Mary Barra said that the brief delay will “make the trucks more efficient and less expensive to produce, and therefore more profitable."

The company also ditched a target to make 400,000 EVs by mid-2024, but said that it is still planning to produce 1 million EVs by 2025. 

“It’s clear that we’re dealing with a lot of near-term uncertainty,” Barra said. “The transition to EVs, that will have ups and downs.”

Last week, Ford  (F) - Get Free Report said it was slowing down the production of its F-150 Lightning truck. 

Even Tesla, widely regarded as the leader in the sector, missed Street delivery expectations for the quarter before posting weaker-than-expected earnings. And CEO Elon Musk said high interest rates were to blame. 

“I have continued to say what I see as reality,” Toyoda, who recently stepped down as Toyota's CEO, said. "There are many ways to climb the mountain that is achieving carbon neutrality."

One of these alternative methods involves hybrids and plug-in hybrids, something that has long made up a significant share of Toyota's EV sales. 

"The reason (hybrids) are so powerful is because they fit the needs of so many customers," Toyota North America's vice president of sales Bob Carter told CNBC last year. "The demand for hybrid has been strong. We expect it to continue to grow as the entire industry transitions over to electrification later this decade."