Toyota is shifting its strategy back to large gas-powered SUVs as electric vehicle sales in the US fall short of expectations. The much-awaited new electric SUV from Toyota has been delayed again, and that’s not all.
Last month, Toyota sold only 1,223 units of its bZ4X, the company’s sole electric SUV in the US market. This number is lower than the nearly 1,400 units sold in June 2024, despite the introduction of an upgraded version.
Toyota bZ4X sales remain lackluster despite the new version.
In the first half of 2025, Toyota sold a total of 9,249 bZ4X vehicles in the US, a slight decrease from the nearly 9,500 units sold in the same period last year.
Toyota’s luxury brand, Lexus, is also facing challenges with its electric SUV, the RZ. Last month, Lexus RZ sales dropped by 30%, with only 763 vehicles sold. In the first six months, Lexus RZ sales totaled 3,779 units, a 33% decline year-over-year.
Amid these ongoing struggles, Toyota has decided to delay the launch of several other electric vehicles and refocus on gas-powered SUVs.
The company announced that it will start producing a new electric SUV at its Kentucky plant in 2028, a year later than initially planned. Previously, this vehicle was expected to be manufactured at the Princeton, Indiana plant after Toyota invested an additional $1.4 billion last April.
According to AutoNews, this decision was made to free up capacity for the popular gas-powered SUV, the Grand Highlander.
Toyota returns its focus to gas-powered SUVs amid electric vehicle struggles.
Toyota will consolidate its electric vehicle production and bring the manufacturing of two new, unrevealed three-row electric SUVs to the Kentucky plant. The larger of the two SUVs will now enter production in late 2026, instead of early 2027 as previously planned.
In an official statement, Toyota said, “As previously announced, Toyota plans to build two new, three-row battery-electric SUVs in the US. Now, both vehicles will be assembled at Toyota Kentucky.”
Additionally, Toyota will increase the production volume of the Grand Highlander at the Indiana plant using a separate assembly line. In the first half of 2025, sales of the Toyota Grand Highlander increased by 20%, surpassing 65,000 units.
Despite the delays in its electric vehicle plans, Toyota remains committed to introducing seven new electric models in the US by mid-2027, including Lexus-branded options.
Later this year, Toyota will unveil a new bZ electric SUV with an extended range and a NACS charging port compatible with Tesla Supercharger public stations. This will be an upgraded version of the familiar Toyota bZ4X.
Smaller electric vehicles, such as the Toyota C-HR and the off-road-style bZ Woodland, are expected to be introduced next year.
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