In a move that bucks the industry trend, Toyota has reintroduced its once-popular Highlander as a fully electric, three-row SUV. This comes at a time when many other automakers are pulling back from their expensive electric vehicle ambitions.
Toyota, which was slower than some to embrace EVs, is betting there’s still a market opening. With the current gas-powered Highlander being phased out in favor of the larger Grand Highlander, the company saw a chance to fill the gap with a new, all-electric version. The 2027 Highlander features a completely new, sleeker design while retaining the three-row layout that made the nameplate a family favorite.
The SUV is designed to seat seven passengers and comes with a modern interior featuring a 14-inch touchscreen, a 12.3-inch driver’s display, and Toyota’s latest infotainment and safety systems. Buyers will have two battery options: a 77.0 kWh pack and a larger 95.8 kWh version that promises an estimated range of 320 miles on a single charge.
In a significant strategic decision, Toyota will assemble the new Highlander at its factory in Kentucky, sourcing its battery modules from the company’s own plant in North Carolina. This domestic production helps the vehicle avoid potential import tariffs.
“We believe that battery electric vehicles are an important part of the industry, and we want to make multiple options available to customers,” a senior executive for the automaker said at the launch event. “We’re really excited about the selection for customers, not only in pricing, but also in size and capabilities.”
The launch, however, occurs against a challenging backdrop for electric vehicles. Consumer demand has softened in the US, partly due to the loss of a federal tax credit and concerns over higher upfront costs and charging infrastructure. Toyota itself has been a major proponent of hybrids, which remain strong sellers, making this push into a larger EV a curious pivot.
It may be a calculated risk. As competitors retreat—with one major US automaker canceling its three-row EV and a European brand halting imports of its large EV after just one year—Toyota might see an opportunity. The company is hoping the Highlander can find a niche in a market with limited three-row EV options, positioning it against only a couple of other models.