Toyota has announced a delay in its electric vehicle (EV) production plans in the US, opting to prioritise manufacturing capacity for the in-demand Grand Highlander SUV.
The Japanese automaker will now begin producing a new electric SUV in Georgetown, Kentucky, in 2028, a shift from the original plan to start in 2027 at its Princeton, Indiana, facility.
The strategic move will enable Toyota to increase the production of the Grand Highlander, available as a petrol-only or hybrid petrol-electric model.
The delay in EV production also aligns with a potential decrease in US EV demand following the Senate's legislation to end tax credits for electric vehicle purchases.
Despite the overall rise in EV sales in the US, Toyota's all-electric sales lagged in 2024, with fewer than 30,000 units sold, contrasting with the surge in hybrid petrol-electric sales. The Grand Highlander has proven especially popular, with Toyota selling over 11,500 units in the last month and dealers maintaining only a three-day supply.
David Christ, the head of Toyota brand sales in the US, emphasised the success of the Grand Highlander, calling it the "fastest-turning product in the lineup,” as reported by Bloomberg.
The company remains committed to its electric future, with plans to offer seven EVs in the US market by mid-2027, including two SUVs to be produced at the Georgetown plant.
Last month, Toyota Motor suggested it is willing to sell US-made vehicles in Japan through its domestic dealer networks to help the Japanese government in its trade negotiations with the US government.
