Toyota Motor Corporation is gearing up for a major shift in its U.S. strategy with the official confirmation of a fully electric Toyota Highlander. The highly anticipated Highlander EV is expected to debut as a 2027 model year vehicle, with production beginning next year.
This comes as part of Toyota’s broader electrification strategy to “load the bases,” as described by David Christ, Vice President of Toyota Motor North America. Over the next few months, the company plans to roll out a wave of new fully electric, hybrid, and plug-in hybrid vehicles across the U.S. market.
Highlander EV Production Shifted to Kentucky
Following the success of the RAV4, the Highlander and Grand Highlander remain among Toyota’s top-selling SUVs in the United States. However, sales have recently skewed in favor of the larger Grand Highlander. In response, Toyota announced earlier this month that it would consolidate electric vehicle production at its Kentucky plant. This strategic move is intended to free up capacity at its Princeton, Indiana, facility for increased Grand Highlander output.
Originally, Toyota planned to build a new electric SUV at its Indiana plant, but this model—expected to be the Highlander EV—will now be manufactured in Kentucky. The electric Highlander will be built alongside another three-row electric SUV, with both vehicles departing from Toyota’s current “bZ” naming convention.
Highlander EV to Debut by Late 2025
Industry insiders suggest the new Highlander EV could be revealed as early as the end of 2025, ahead of its official 2027 model year release. This model is part of a larger pipeline that includes seven new EVs Toyota aims to launch in the U.S. by mid-2027.
In a statement, Toyota confirmed, “We plan to produce two all-new, three-row battery electric SUVs in the U.S. Both vehicles will now be assembled at Toyota Kentucky.”
Expanded EV Lineup Underway
Toyota’s electrification roadmap also includes upgrades to its existing bZ electric SUV line. The new bZ model—replacing the bZ4X—is set to arrive later this year with an extended driving range and support for Tesla’s NACS charging standard.
In 2026, Toyota will follow up with the smaller all-electric C-HR and the bZ Woodland SUV. Both are expected to deliver improved performance and range, aiming to overcome the mixed reception of the original bZ4X.
A Strategic Leap Toward Electric Mobility
The announcement marks a significant pivot for Toyota, which has historically focused on hybrids. With the Highlander EV and a growing lineup of battery-electric vehicles, the company is reinforcing its long-term commitment to sustainable mobility.
The move positions Toyota to remain competitive in a U.S. market increasingly dominated by electric SUVs. It also underscores the automaker’s renewed emphasis on local manufacturing and adaptability to shifting consumer preferences.
As the industry awaits the official unveiling of the Highlander EV, Toyota’s expanding EV ambitions signal a transformative era for one of the world’s largest automakers.