Why Toyota is expanding its EV lineup with new Highlander
Wed, February 11, 2026 at 4:15 PM EST
In this video:
Toyota (TM) is expanding its electric vehicle (EV) lineup, with the revamped 2027 Highlander.
Yahoo Finance Senior Autos Reporter Pras Subramanian joins Market Domination host Josh Lipton to share the latest.
To watch more expert insights and analysis on the latest market action, check out more Market Domination.
Video Transcript
00:01
Speaker A
Toyota is not shying away from EVs with its all-electric next generation 2027 Toyota Highlander. Now Finance's Pras Subramanian is joining us with the latest. So, Pras, some auto makers they're they're they're shying away from EVs. Toyota, still looking committed.
00:23
Pras Subramanian
Yeah, I think it's an interesting move here, right? This day and age to introduce a three-row EV SUV, and that's the Highlander is. Look, the the original Highlander was a gas-powered car and it and it they it went away as then the Grand Highlander came out, bigger SUV. And now they're kind of inserting this Highlander EV there, right? So it's be three rows still, uh 320 miles of range, uh pretty interesting there. Uh pretty decent size inside and a kind of a angular sleek designer. But the the big question here is, these bigger EVs can be kind of expensive and it's and do customers really want them, right? So, you know, uh David Christ, who's the uh Toyota North America VP, uh was at an event last night at the debut and here's what he had to say about why the Highlander does make sense as an EV.
01:10
David Christ
We believe that battery electric vehicles are an important part of the industry, and we want to make multiple available to customers. We went from one to four in 2026, so we're really excited about that selection for customers, not only in pricing, but also in size and capabilities.
01:31
Pras Subramanian
Toyota will now have four EVs on sale this year. The new Highlander, uh the bZ, which is their pre-existing EV, which is kind of like almost like a uh like a RAV4. You got the CHR, which is kind of a smaller EV. Then you have the larger bZ Woodland, which is like an extended version of the bZ. So, they're trying to kind of have a little bit of a product portfolio of EVs. But no, Toyota's huge in hybrids too. So, they're kind of trying to hedge their bets.
01:54
Speaker A
Do they, do we have a a price on this one yet? Did they reveal that?
01:58
Pras Subramanian
We don't have a price yet, but the main competitors are the Kia EV9, which is very well received, uh and the the twin of it, which is the Hyundai Ionic 9. The Kia starts around $55,000-ish starting. So, I would anticipate that that Toyota would would start there around around there as well. But, you know, Toyota has a better name recognition, a better value, uh in terms of the brand itself. So maybe they'll charge a bit more, but they can't go too high, right? Because then you're turning off customers.
02:22
Speaker A
Um, I read your very good report on this. You mentioned how they're going to assemble this one, the Highlander, in the US, Kentucky. What are the advantages of that of that decision?
02:32
Pras Subramanian
I mean, look, tariffs. Big one, right? So, building in Kentucky, the battery modules will be built in a a North Carolina plant in the US. So, you're going to avoid all that. Now, you got materials coming in from places and you have to pay tariffs on that. But this is a pure American-ba- built EV, large scale EV. You don't really have that much in the US other than the uh the Rivian R1S, I believe. The Korean auto makers are making them in Korea, right? So, uh, well, actually, they're going to start making them in in Georgia, too. So, it's all part of the mix of of of onshoring this production and EVs are a part of that.
02:59
Speaker A
All right. Thank you, Pras. Appreciate it.
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