Toyota is set to revitalize its popular Highlander three-row SUV line by launching an all-electric model, navigating a period where many in the automotive industry are reassessing their commitment to costly battery-electric vehicles. This introduction marks a significant step for Toyota, which has historically lagged in the EV sector but now seeks to carve out a new market segment, especially as the gas-powered Highlander yields to its larger sibling, the Grand Highlander, creating a void for a dedicated electric offering.
The upcoming 2027 Highlander EV showcases a complete design overhaul, featuring a more streamlined and lower-profile aesthetic while retaining its familiar three-row SUV configuration. This new iteration promises enhanced passenger comfort with seating for seven, a modern interior equipped with a 14-inch touchscreen, a 12.3-inch driver display, and Toyota's cutting-edge multimedia and safety systems. Furthermore, consumers will have a choice of two battery capacities—77.0 kWh and 95.8 kWh—with the larger option projected to deliver an impressive range of 320 miles. In a move to optimize production and mitigate tariff impacts, Toyota has committed to assembling the vehicle at its Kentucky facility, with battery modules sourced from its North Carolina plant.
Toyota's decision to launch the Highlander EV comes at a complex time, as the US market experiences a slowdown in electric vehicle sales, partly due to the expiration of federal tax credits, higher upfront costs, and ongoing concerns about charging infrastructure. Despite these challenges, Toyota, a strong advocate for hybrid technology, perceives an opportunity to capture market share, particularly if it can achieve cost-effective production. With competitors like Ford having scaled back their large EV SUV plans and Volkswagen exiting the US market with its ID. Buzz, Toyota's Highlander EV aims to fill a gap, competing primarily with limited full-size EV options such as the Kia EV9 and Hyundai Ioniq 9.
Toyota's venture into the electric Highlander segment underscores a forward-thinking approach to automotive innovation and market adaptation. By offering a diverse range of electric vehicles, the company is not only providing consumers with more choices in terms of size, capability, and price but also demonstrating resilience and adaptability in a rapidly evolving industry. This strategic move could inspire other manufacturers to explore untapped niches, fostering a more competitive and dynamic EV landscape that ultimately benefits the consumer and drives sustainable transportation solutions.