The rollout comes at a moment when several automakers are scaling back EV plans and when federal purchase incentives have expired. Toyota, which has long defended a diversified powertrain strategy, now sees an opening to capture a larger share of the EV market with a broader showroom presence.
For years, the world’s largest carmaker has promoted a “multi-pathway” approach, selling battery-electric vehicles (BEV), hybrids (HEV), plug-in hybrids (PHEV), and fuel-cell electric vehicles (FCEV). It has also been one of the most outspoken companies about not going all-in on EVs. That stance left gaps in its electric lineup, particularly in the SUV segment, even as competitors pushed ahead with higher-volume EV sales.
Highlander EV Positioned as a High-Volume Model
The newly revealed 2027 Highlander EV marks a turning point. Toyota confirmed that this version of the Highlander will be exclusively electric. According to Automotive News, David Christ, vice president of Toyota Motor North America, made clear the company’s ambitions for the three-row SUV. “This is not a niche product. There will be volume,” he said.
The launch coincides with retrenchment elsewhere in the segment. Ford abandoned plans for its own three-row electric SUV in 2024. Last month, Tesla announced it would discontinue the Model X, with production scheduled to end by the close of the second quarter. The shifting competitive landscape leaves room in a category that had limited mass-market options.
Christ acknowledged that EV demand has cooled since the $7,500 federal tax credit expired at the end of September. “Yes, [EV sales are] down after the federal incentives went away,” he said. Even so, he added that Toyota believes it deserves “our fair share of the EV market that’s there,” and that the four new models will help secure it.
Prices for the 2027 Highlander EV will be announced later this year, but it is expected to start at around $50,000 to $55,000. At that level, it would be priced close to the Kia EV9, which starts at $54,900.
A Complete Electric SUV Lineup by 2026
The Highlander EV is one of four new Toyota electric SUVs heading to market. Orders have already opened for the 2026 bZ, the C-HR, and the bZ Woodland. With the Highlander EV joining later this year, Toyota will offer a smaller crossover-style C-HR, a mid-size bZ, an off-road-focused bZ Woodland, and a three-row family-oriented Highlander EV.
Starting at under $35,000, the 2026 bZ is among the most affordable EVs available in the US. The 2026 C-HR begins at $37,000 and comes standard with all-wheel drive. The bZ Woodland starts at about $40,000.
According to Electrek, Christ said that other mass-market brands have been selling EVs in higher volumes for several years, while Toyota lacked sufficient electric options in its showrooms. “We think we felt one of our portfolio holes was not having EV options in the showroom,” he explained. The company’s strategy now centers on filling that gap across multiple SUV categories rather than relying on a single electric nameplate.
Updated BZ Shows Early Signs of Momentum
The revised 2026 bZ addresses several shortcomings of the outgoing bZ4X. It delivers a 25% improvement in driving range, now reaching up to 314 miles. The model also features a refined interior and exterior design and includes a built-in NACS port, allowing drivers to recharge at Tesla Superchargers across the United States.
According to Electrek, the improvements appear to be resonating with buyers. The new bZ ranked among the top-selling EVs in the US last month, surpassing the Hyundai IONIQ 5, Ford Mustang Mach-E, Kia EV9, and Honda Prologue.
Brand loyalty may further support the rollout. According to the JD Power 2025 US Automotive Brand Loyalty Study, Toyota ranked first among mass-market brands for the fourth consecutive year, posting a 62% loyalty rate. Honda placed second at 55.5%.
