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Toyota Announces Major Expansion into Electric Vehicles
Toyota Motor Corporation has announced a significant expansion of its global electric vehicle (EV) lineup, with key model launches and strategic milestones targeted by 2027. The most notable addition is a fully electric version of the Toyota Highlander, expected to debut in 2027 as a full-size, three-row SUV, marking a major step in Toyota's EV offerings.
The company's lineup overhaul through 2028 will likely include other new electric models, potentially including sedans alongside SUVs and trucks, with the Highlander EV as a flagship launch. Toyota aims to expand its global EV lineup to approximately 15 models by 2027, with a production target of about 1 million electric vehicles annually.
Toyota's EV expansion targets include:
- 2025-2026: Introduction of an updated RAV4 with enhanced hybrid and plug-in hybrid powertrains for North America, highlighting incremental electrification progress.
- 2027: Launch of the all-electric Toyota Highlander, reportedly the company's first large electric SUV with three rows of seats, aiming at the North American market and beyond.
- 2027 and beyond: Expansion of plug-in hybrid electric vehicle (PHEV) offerings, with a target to sell 150,000 PHEVs annually by 2027 as a “bridge technology” while continuing hybrid legacy models like the Prius.
- Battery Technology and Production: Toyota aims to commercialize solid-state batteries by 2027–2028, a potentially game-changing advancement promising longer range and faster charging. This is supported by investments in a $14 billion battery plant in North Carolina, reinforcing U.S. competitiveness vs. rivals like Tesla and BYD. However, delays have affected some plans, such as the Fukuoka battery plant.
In the Chinese market, Toyota is making a significant move with the construction of a new energy vehicle factory in Shanghai's Jinshan District. The centerpiece of a strategic cooperation agreement between Toyota and the Shanghai Municipal Government, the facility will cover an area of approximately 277 acres and integrate research, development, manufacturing, and sales functions. Toyota will invest 14.6 billion yuan (2.02 billion USD) in the project.
The focus of the facility will be on producing Lexus-branded electric vehicles and advanced battery technology. Domestic component usage in the Lexus vehicles produced at the factory is expected to exceed 95%. The success of this project could determine Toyota's future direction in the rapidly evolving automotive landscape.
Toyota's China strategy is shifting, as it previously relied on joint ventures. The Lexus project in Shanghai is the second globally influential new energy vehicle project in the city, following Tesla's Gigafactory. However, Toyota's chief's remark that "one EV pollutes like three hybrids" faces scientific pushback in China.
[1] Reuters, "Toyota to launch electric Highlander SUV in 2027, expand global EV lineup," (2022). [2] Bloomberg, "Toyota's EV Plans Face Delays as It Scales New Technology," (2022). [3] Car and Driver, "Toyota Highlander Hybrid: Review," (2021). [4] Car and Driver, "2023 Toyota RAV4 Hybrid Review," (2022). [5] CNBC, "Toyota to sell 150,000 plug-in hybrid vehicles annually by 2027," (2021).
- The all-electric Toyota Highlander, scheduled for launch in 2027, signifies a significant shift in Toyota's new energy vehicle (NEV) offerings and lifestyle choices, as the company aims to compete in the rapidly growing market for new energy vehicles.
- Toyota's strategic move to commercialize solid-state battery technology by 2027–2028, with the construction of a $14 billion battery plant in North Carolina, could revolutionize battery technology, promising longer range and faster charging for their new energy vehicles and lending global competitiveness against rivals such as Tesla and BYD.
