Toyota Shifts US EV Strategy: Two New Three-Row Electric SUVs on the Horizon






Revolutionizing the Road: Toyota's Dual Electric SUV Strategy Unveiled
A Pivotal Shift: Relocating Production for Enhanced Efficiency
After more than two years since the initial announcement of a three-row electric SUV destined for US production, Toyota has revised its manufacturing strategy. The initial plan to build this key electric model in Indiana has been altered. Now, the facility in Kentucky will serve as the primary site for not one, but two new three-row electric SUVs. This consolidation is a deliberate effort to improve manufacturing efficiencies and align production more closely with market demand, demonstrating a flexible and responsive approach to the evolving automotive landscape.
Strategic Investments and Market Responsiveness Drive Change
Toyota's decision to relocate and expand its EV production follows substantial investments, including an additional $1.4 billion into its Indiana plant last April, which was originally intended for the larger SUV and a new lithium-ion battery assembly line. However, the company has now streamlined its operations, bringing both the Toyota and a new Subaru three-row electric SUV under one roof in Kentucky. This adjustment is a direct response to current market dynamics, where consumer preference for larger vehicles like the Grand Highlander has been consistently growing, underscoring the importance of agile manufacturing strategies.
Expanding the Electric Horizon: More Than Just SUVs
Beyond the new three-row SUVs, Toyota is actively broadening its electric vehicle portfolio for the US market. Later this year, an updated bZ electric SUV, featuring enhanced range and design, along with a NACS port for expanded charging options, will arrive at dealerships. Looking further ahead to next year, the smaller Toyota C-HR and the rugged bZ Woodland electric SUVs are set to debut. By mid-2027, Toyota, including its Lexus brand, aims to offer seven distinct electric models in the US, alongside Subaru's introduction of three new EVs by 2026, including the Trailseeker SUV, painting a comprehensive picture of electrified mobility.