Toyota (TM) has reintroduced its once-popular Highlander three-row SUV as an all-electric vehicle with improved features, just as the industry moves away from expensive battery electric vehicles.
Toyota is a late starter in electric vehicles but hopes to have a chance as demand for EVs wanes. The current gas-powered Highlander will be phased out as the larger Grand Highlander steals buyers from it, leaving room for the new Highlander as an all-electric option.
The 2027 Highlander has new styling, including a sleeker, lower-profile look, but retains the three-row SUV layout that made it popular.
The Highlander seats seven passengers and features a new interior design with a 14-inch touchscreen, 12.3-inch driver display and Toyota’s latest multimedia infotainment and driver safety systems.
The SUV comes with two battery options – 77.0 kWh and 95.8 kWh – with the larger version capable of 320 miles of range.
Toyota said the vehicle will be assembled at its Kentucky plant and its battery modules will come from Toyota’s North Carolina battery plant, so it won’t face tariffs.
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Highlander will be Toyota’s first three-row electric SUV. Deliveries will begin in late 2026, with pricing to be announced closer to launch.
“We believe pure electric vehicles are an important part of the industry and we want to offer customers a variety of electric vehicles,” David Crist, vice president of Toyota Motor North America, said at the launch. “We go from one to four [EVs] We’re very excited about the choices our customers have for 2026, not only in terms of price, but also in terms of size and functionality. So we do have a BEV for everyone. “
While the new Highlander is a compelling product, its launch comes at a time when U.S. electric vehicle sales have been declining, hurt by the elimination of the federal EV tax credit. In some cases, consumers are also hesitant about electric vehicles due to generally higher costs and concerns about U.S. charging infrastructure.
Toyota is a big supporter of hybrid vehicles, which are popular in the U.S., so the shift to more electric vehicles is curious. With other competitors withdrawing, Toyota may see an opportunity here as well, especially if the Japanese auto giant can assemble the vehicles in a cost-effective manner.
The three major automakers booked a total of $52.1 billion in losses and impairments related to their electric vehicle business.
In terms of large electric SUVs, Ford (F) canceled its three-row electric SUV concept due to demand and price reasons. Volkswagen (VWAGY) will stop importing its IDs. The large electric car is making a splash just a year after it went on sale in the United States.
