Toyota Motor has disclosed plans to commence the production of two new battery-powered sport utility vehicles (SUVs) at its manufacturing facility in Kentucky, US.
The decision is aimed at enhancing manufacturing efficiency and catering to the evolving demands of the market, as reported by Reuters.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Toyota Motor North America revealed that the forthcoming three-row battery electric SUVs would be assembled at Toyota Kentucky, marking a strategic shift in production between its Kentucky and Indiana plants.
The company communicated to the news agency via email saying: “Toyota Indiana will continue to assemble the Grand Highlander in its west plant and add assembly of the vehicle to its east plant to accommodate increased production volume.”
According to an anonymous source, the EVs slated for production in Kentucky will be models based on the RAV4 and the Land Cruiser. However, this individual was not authorised to speak publicly on the matter.
In a significant change to its current operations, Toyota will cease the production of the Lexus ES sedan at the Kentucky facility, a source said.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe next iteration of the luxury model, expected to launch next year, will be manufactured in Japan, a move that Toyota had previously announced in 2021.
Toyota’s US production currently includes the Lexus ES sedans in Kentucky and the Lexus TX SUVs in Indiana.
Following a report by the Nikkei newspaper suggesting that Toyota would centralise its US Lexus production due to high tariffs from the President Donald Trump administration, the company responded by stating that such information had not been officially announced.
Toyota emphasised its ongoing efforts to review production structures to enhance the quality of its vehicles.
Recently, Toyota Motor Europe announced that it will commence production of its first battery EV in Europe at the Toyota Motor Manufacturing Czech Republic site.
This represents a significant investment in the Czech automotive sector, with Toyota allocating approximately €680m for new capital expenditures.
The investment includes a contribution of up to €64m from the Czech Government for the establishment of a dedicated battery assembly facility.
Last month, Toyota announced plans to launch three fully-electric vehicle models for sale in South Africa in 2026.
