Toyota (TM) reintroduced its once-popular Highlander three-row SUV as a full EV with improved capabilities, just as the industry pushes away from costly battery electrics.
Toyota, which was late to the EV game, hopes there’s an opening even as demand for EVs has waned. The current gas-powered Highlander will be phased out, as the larger Grand Highlander usurped its buyers, leaving an opening for the new Highlander as a fully electric option.
The 2027 Highlander comes with totally new styling, including a sleeker, low-profile look, but retains the three-row SUV layout that made it popular.
The Highlander features seating for seven passengers and a new interior design with a 14-inch touchscreen, 12.3-inch driver’s 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 factory and its battery modules will come from Toyota’s North Carolina battery plant, so it won’t be exposed to tariffs.
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The Highlander will be Toyota’s first three-row EV SUV. Deliveries will begin in late 2026, with pricing available closer to launch.
“We believe that battery electric vehicles are an important part of the industry, and we want to make multiple available to customers,” Toyota Motor North America group vice president David Christ said at the launch event. “We went from one to four [EVs] in 2026, so we’re really excited about that selection for customers, not only in pricing, but also in size and capabilities. So we really have a BEV for everybody.”
Though a compelling product, the new Highlander comes as EV sales have been waning in the US, with the loss of the federal EV tax credit hurting EV sales. In some cases, consumers have also balked at EVs due to generally higher costs and concerns about charging infrastructure in the US.
Toyota is a big proponent of hybrids, which are big sellers in the US, so the pivot to more EVs is curious. It could also be the case that Toyota sees an opening here as other competitors withdraw, especially if the Japanese auto giant can assemble the vehicles cost-effectively.
The Big Three automakers have collectively booked $52.1 billion in losses and impairments related to their EV businesses.
In terms of larger EV SUVs, Ford (F) canceled its three-row EV concept due to demand and price. Volkswagen (VWAGY) will stop importing its ID. Buzz large-form EV after being available for only one year in the US.
