Toyota has recently announced a shift in its electric vehicle (EV) production plans in the US, with a focus on prioritizing the manufacturing capacity for the popular Grand Highlander SUV. Originally slated to begin production of a new electric SUV in Princeton, Indiana, in 2027, the company has now decided to start production in Georgetown, Kentucky, in 2028.
This strategic decision will allow Toyota to meet the growing demand for the Grand Highlander, which is available in petrol-only or hybrid petrol-electric models. The delay in EV production also comes in response to the potential decrease in US EV demand following the Senate’s decision to end tax credits for electric vehicle purchases.
Despite the delay, Toyota remains committed to its electric future and plans to offer a total of seven EVs in the US market by mid-2027, including two SUVs that will be produced at the Georgetown plant. The company’s goal is to stay competitive in the evolving automotive market and continue to innovate in the electric vehicle space.
In the meantime, the Grand Highlander has been a standout success for Toyota, with over 11,500 units sold in the last month alone. Dealers are struggling to keep up with demand, as the SUV has become the fastest-turning product in Toyota’s lineup. This success further reinforces Toyota’s decision to prioritize production of the Grand Highlander over new EV models.
In a recent development, Toyota has also expressed willingness to sell US-made vehicles in Japan through its domestic dealer networks. This move is aimed at supporting the Japanese government in its trade negotiations with the US government and expanding Toyota’s global presence.
Overall, Toyota’s decision to delay EV production in favor of the Grand Highlander reflects its strategic approach to meeting market demand and staying ahead in the competitive automotive industry. With a strong focus on innovation and sustainability, Toyota is poised to continue leading the way in the transition to electric vehicles.
