Two 3-Row EV SUVs, One Factory
Originally, Toyota had invested $1.4 billion into its Princeton, Indiana plant to build the three-row electric SUV. That plan included a new assembly line and battery supply from Toyota’s battery factory in North Carolina.
Now, Toyota says both EV models—including a collaboration with Subaru—will be built at its Georgetown, Kentucky facility. According to the company, the change will “improve manufacturing efficiencies” and “better serve customers based on market demand.”
The move consolidates production and potentially speeds up the rollout of electric models.
Why the Grand Highlander Shift Matters
While EV production is shifting to Kentucky, Toyota will ramp up Grand Highlander production in Indiana. That model has been gaining traction, with sales rising nearly 50% last year. Meanwhile, sales of the standard Highlander have dropped by over 60% this year.
By focusing on the higher-demand model, Toyota is adjusting quickly to consumer behavior.
More EVs on the Way
Toyota isn’t slowing down its electric ambitions. The updated bZ SUV, now with more range and Tesla-compatible charging, lands at U.S. dealerships later this year. In 2026, we’ll see the C-HR EV and bZ Woodland join the lineup.
Toyota plans to launch seven EVs by mid-2027, including several under the Lexus badge. Meanwhile, partner brand Subaru is preparing three EVs by 2026, including the new Trailseeker.
Why Three-Row EVs Matter in the U.S. Market
Americans love space, and the data proves it. Three-row SUVs are among the most in-demand vehicles in the U.S., especially for families and those needing extra cargo room. Until now, the EV market has lacked solid options in this category, with most electric SUVs offering only two rows or limited rear seating. Toyota’s move to produce not one but two electric three-row SUVs aims to close that gap—fast. By targeting this under-served segment, Toyota is positioning itself to win over buyers hesitant to switch to EVs due to practicality concerns. It’s not just about going electric—it’s about making electric work for real life.
Price Hike Alert
Starting July 1, Toyota and Lexus models built in the U.S. will see price increases. So if you’re EV shopping, now may be the time to lock in a deal.