Toyota Delays US Three-Row Electric SUV Production

Toyota has delayed the US production of its new three-row electric SUV from 2026 to 2028, shifting manufacturing from Indiana to its Georgetown, Kentucky, plant to focus on the popular gas-powered and hybrid Grand Highlander SUV. The decision is driven by softening US demand for electric vehicles, sluggish sales of current Toyota EVs such as the bZ4X and Lexus RZ, and ongoing uncertainty over federal EV tax incentives. In 2024, Toyota sold fewer than 30,000 all-electric vehicles in the US, while Grand Highlander sales surged, prompting a shift in production priorities. Despite the delay, Toyota plans to launch seven new EV models in the US by mid-2027, including under its Lexus brand. The company is maintaining a multi-pathway strategy that includes hybrids, hydrogen vehicles, and battery electrics, rather than fully committing to EVs. This adjustment underscores Toyota's effort to balance near-term consumer demand with longer-term electrification objectives.