TOYOTA DELAYING AMERICAN-BUILT ELECTRIC SUV BECAUSE YOU WANT THE GRAND HIGHLANDER INSTEAD

Toyota is pushing back its US EV plans and even moving production to a different factory when it happens. In May, we learned that Toyota had been planning on bringing two new EVs to market in the US, and that both would be built here. One in Indiana, and the other in Kentucky. Now a new report says that its EV plans have changed. Not only will its upcoming EVs get pushed back by more than a year, but production will move. At least it seems both will be made in the US, instead of having one imported from Japan. They'll both just be at the Kentucky Toyota plant instead of spreading the builds around because Toyota needs more Grand Highlanders and minivans.

New EV Will Not Be Built In Indiana And It Won't Arrive In 2027

Toyota's recently confirmed plans for US-made EVs included a three-row SUV model and a second new electric. The three-row was due for early 2026, and the automaker planned to spend $2.1 billion on the Georgetown Kentucky plant to help make it happen.

That model has now been pushed back to late 2026, Bloomberg reports. The second EV, which was expected early in 2027 is now set to arrive sometime in 2028, according to the report. Instead of being built in Princeton, Indiana, it too will be assembled in Kentucky.

It's not really a surprise. The current climate is definitely not EV-friendly, no matter where they are built. And while Toyota doubled its EV sales in 2024, the bZ4X (now just bZ) still only moved 18,570 units last year. That's the equivalent of about a week and a half of sales of Toyota's extremely popular (and similarly-sized) RAV4.

It's All Grand For Highlander Production Instead

Toyota hybrid model sales, on the other hand, continue to soar. The brand moved 883,426 electrified vehicles in the US last year, reaching 44.5% of total sales and up 56% from the year before. In the first half of 2025, electrified sales have climbed to 48.1%.

This explains what Toyota is doing with its plants during the delay: build more Grand Highlanders. Toyota dealers are moving the three-row crossover as quickly as they arrive. The report says that Toyota finished June with just a three-day supply at stores. Which is essentially zero if you're going shopping for one.

Pushing back EVs will allow Toyota to build more Grand Highlander models at its Princeton plant. The Grand Highlander is built there along with the closely related Lexus TX as well as Toyota's Sienna minivan. The TX is selling extremely well, up 117% in June year over year, while the Sienna is up 60% so far this year.

While Toyota has said it plans to have seven EVs on sale in the US by mid-2027, including the bZ, the reborn C-HR, and the new bZ Woodland, this report indicates those plans could be changing. Yesterday, the US Senate passed a massive bill with huge spending increases in some areas but cuts that mark the end of the $7,500 federal EV tax credit. The credit will end on September 30, and will most likely cause a run on EV sales until that date and a sharp slump after.

Source:Bloomberg

2025-07-05T04:09:42Z