Toyota is doubling down on electric vehicles with the 2027 Highlander EV, a three-row SUV boasting 320 miles of range. The Japanese automaker unveiled the vehicle at an industry event, signaling its commitment to EVs despite some rivals scaling back. The Highlander EV will join Toyota's expanding EV lineup, which includes the bZ, CHR, and bZ Woodland models.

Toyota's strategy reflects a hedging approach, balancing its dominance in hybrids with growing EV offerings. The Highlander EV will be assembled in Kentucky with battery modules produced in North Carolina, helping avoid potential tariffs. This onshoring effort positions Toyota alongside domestic EV makers like Rivian, while competitors like Hyundai and Kia continue manufacturing primarily overseas.

The Highlander EV will compete with models like the Kia EV9 and Hyundai Ioniq 9, which start around $55,000. Toyota's strong brand recognition may allow for premium pricing, but the company must remain competitive. With four EVs planned for 2026, Toyota aims to offer customers diverse options in size, capability, and price point, betting that larger EV SUVs will find their market despite higher costs.