Toyota adds 2027 SUV “Highlander” to electric vehicle lineup
Toyota is expanding its electric vehicle lineup in the United States with the 2027 Highlander SUV.
- Toyota is planning to release a new electric SUV, even though it has taken a cautious stance toward the EV market.
- Sales of the company’s first mainstream EV, the bZ4X, are declining, and its specs are lackluster compared to its rivals.
Japanese automaker Toyota Motor Corporation (NYSE:TM) has taken a cautious and hesitant approach to producing electric vehicles in the United States, but it is looking to disrupt the emerging automotive segment with a new SUV.
It’s no secret that Toyota is cautious about producing electric vehicles in the U.S., but the brand has fallen behind the likes of Tesla, Hyundai, Kia and Ford as more automakers enter the popular small electric SUV segment, led by the Tesla Model Y.
Currently, Toyota offers small electric SUV options, but they are not as dominant in that segment as the Toyota RAV4. Surprisingly, Toyota is making a big push into EV production, targeting a segment that’s been getting a lot of attention in recent years. This is why this development is shocking to say the least.
Toyota to electrify mid-sized SUV Highlander in 2026
According to a press release from Toyota, the all-electric 2027 Highlander EV is scheduled to go on sale in late 2026 in Georgetown, Kentucky. Pricing hasn’t been announced yet, but Toyota is boasting up to 338 horsepower and 320 miles of range, which is competitive even by today’s standards.
Toyota’s Highlander EV aims to compete with the Kia EV9, Hyundai Ioniq 9, and other midsize electric SUVs that are designed with families and long-distance travel in mind.
Toyota’s EV track record in the US is not overwhelming
The first mainstream mass-produced battery electric vehicle produced by Toyota was the bZ4X. It was a small electric SUV whose specs seemed lackluster compared to its key rivals.
Toyota later rebadged the bZ4X to Toyota bZ and completely redesigned it. Prices for the 2026 bZ start at $34,900. It produces 165 horsepower and has a range of 336 miles. The upper trim has even more impressive specs. According to a recent sales report, Toyota will sell only 15,609 bZ models in 2025, down from 18,570 in 2024.
Electric cars are losing popularity in the US
According to Cox Automotive, U.S. EV sales will decline from the previous year from 2024 to 2025. Federal electric vehicle tax incentives are also set to end in 2025, so sales soared as drivers in the U.S. took advantage of the tax credits before they went away. Many major automakers, including Ford, are taking a different approach to EVs after their sales and profits took a huge hit. Ford is considering producing an EREV (extended range electric vehicle) version of the F-150 and has ended production of the all-electric F-150 Lightning.
Rival brands are trying to unseat Tesla, but few challengers come close to Tesla’s dominance in the U.S. market. Additionally, the Trump administration is aggressively cutting back on EV charging infrastructure spending, according to Politico.
EVs may have a place in the auto industry, but given the current sales environment, it’s unlikely that electric cars will outsell gasoline or hybrid cars in the U.S. anytime soon. Toyota’s move into producing a midsize electric SUV is an acceptable risk as the company is backed by strong sales numbers for its most popular models. Other automakers that have been going all-in on EVs are starting to back off.
Toyota’s best seller is now a hybrid
The best-selling vehicles in Toyota’s portfolio include models such as the Toyota RAV4 small SUV and Toyota Camry midsize car, both of which are now standard hybrids. According to its fourth quarter sales report, the brand sold more than 316,000 Camry models and 479,000 RAV4 models in 2025. Most Toyota gasoline models also offer a hybrid configuration for drivers willing to pay more for improved fuel economy.
Hybrids are Toyota’s backbone. The brand gradually began favoring hybrid powertrains over other powertrains, making models like the Sienna minivan and Sequoia SUV standard hybrids. Today, even the most successful nameplates benefit from electric motors. Are Toyota’s hybrid sales strong enough for the company to invest further in the EV space?
