Toyota has reportedly pushed back the launch of its three-row electric SUV, potentially an electric version of the Kluger (known as Highlander in other markets), due to cooling demand for battery-powered vehicles and surging hybrid sales.
Production Delay: Initially planned for 2025, the launch is now expected in the first half of 2026. The delay affects production at Toyota's Kentucky factory in the US.
Investment and Preparation: Toyota's US division had announced a US$1.3 billion (A$2 billion) investment to prepare the Kentucky factory for EV production.
Market Factors: The delay is attributed to slowing demand in the global EV market. Hybrid sales continue to surge, particularly in markets like Australia.
Revised EV Targets: Toyota has reportedly cut its 2026 annual EV sales forecast from 1.5 million to 1 million units.The company plans to produce slightly over 400,000 EVs in 2025, ramping up to 1 million in 2026.
Current EV Performance: EVs accounted for less than 1% (104,018 units) of Toyota's global sales in 2023. In contrast, hybrid vehicles contributed 3.42 million sales to Toyota's record 11,233,039 global sales in 2023.
Potential Model Details: The electric SUV might be based on the bZ Large SUV concept revealed in December 2021. Previous reports suggested it could carry the Highlander/Kluger name.
Lexus Plans: Plans for a Lexus version (reportedly named TZ) have also been affected.Lexus won't produce battery-powered SUVs in the US before 2030, instead importing EVs from Japan.
Toyota's decision to delay the launch of its electric three-row SUV reflects broader challenges in the EV market. While the company remains committed to electrification, it's adjusting its strategy to align with current market demands, particularly the continued strong performance of its hybrid models.
