Toyota is delaying its electric vehicle production plans in the US to prioritize a popular gasoline-powered SUV. The Japanese automaker now plans to begin production of a new electric SUV at its Georgetown, Kentucky plant in 2028, over a year later than originally planned. This yet-to-be-named model was initially slated for production at Toyota's Princeton, Indiana plant, but will now be built in Kentucky.
This decision allows the company to ramp up production of the Grand Highlander SUV, currently available in gasoline and gasoline-hybrid versions. The vehicle launched in the US market in 2023, and in the first half of 2024, Toyota sold over 55,300 Grand Highlanders in the US.
 |
Toyota Grand Highlander in the US. Photo: Toyota |
Toyota Grand Highlander in the US. Photo: Toyota
These recent delays come as demand for electric vehicles in the US slows, potentially exacerbated by the US Senate's passage of a law ending incentives that made these vehicles more affordable for buyers. In May, Toyota announced plans to offer 7 electric vehicle models in the US by mid-2027, including two locally produced SUVs.
Total electric vehicle sales increased by 7.3% in the US in 2024 to around 1.3 million vehicles, according to Cox Automotive. However, Toyota delivered fewer than 30,000 all-electric vehicles in the US that same year, despite a surge in its hybrid sales.
Meanwhile, demand for hybrid and gasoline-powered SUVs remains high. Toyota sold 11,577 Grand Highlanders in May and ended June with only a three-day supply at dealerships.
"That vehicle is really our fastest-turning product," said David Christ, Toyota's head of US sales.
My Anh (Japan Times)
