Toyota delays launch of new electric SUV
Toyota has postponed the launch of a new large electric SUV to 2028. This decision is related to slow electric vehicle sales and high demand for the Grand Highlander model with an internal combustion engine. Instead, the company plans to start production of another electric SUV in 2026.
The automaker traditionally supports various types of powertrains, including electric vehicles, hydrogen models, and conventional internal combustion engines. However, the unexpected success of the Grand Highlander has forced the company to reconsider its electrification plans.
EV sales haven’t taken off in the way Toyota – and every other automaker – thought they might.
Why did this happen?
Despite the success of the updated bZ4X, the overall electric vehicle market in the US is growing slower than expected. Instead, hybrids and traditional models with internal combustion engines continue to gain popularity. The Grand Highlander became the second best-selling non-truck model for Toyota in June, with a 92% growth.
Dealerships had only a three-day supply of Grand Highlanders at the end of the month. Postponing the production of the electric SUV will allow the company to focus on manufacturing the popular crossover.
This situation highlights the difficulty of balancing innovation with current market needs. While Toyota remains a proponent of various technologies, the practical aspects of business sometimes require adjustments to long-term plans. Sales figures indicate that consumers still prefer proven solutions, especially in the large SUV segment.