Toyota Delays New Electric SUV as Demand for One Gas Model Increases | Carscoops

      Toyota has postponed the launch of a new large electric SUV to 2028, according to reports.

      This decision is a reaction to the slower than anticipated electric vehicle (EV) sales and the high demand for the Grand Highlander.

      The company will now produce the postponed EV alongside another electric SUV beginning in 2026.

      As preferences evolve in the automotive market, the ongoing conflict between forward-looking electric vehicles and established internal combustion engine (ICE) models is influencing production strategies.

      Toyota has consistently advocated for a multi-energy strategy, which is why its showrooms feature EVs, hydrogen fuel-cell vehicles, and combustion models. However, the brand's immense demand for a particular ICE SUV has led them to pause the rollout of a planned new EV to prioritize production.

      Reports indicate that an electric SUV initially set to be manufactured at Toyota’s Princeton, Indiana, facility beginning in 2027 will now not commence until 2028. The production has been relocated to Toyota’s Georgetown site, where another EV is scheduled to start production in late 2026, approximately six months later than originally intended.

      This serves as disappointing news for EV enthusiasts but may benefit anyone interested in purchasing a Grand Highlander in the upcoming years.

      Several factors contribute to the delay and production switch, one being that EV sales have not surged as anticipated by Toyota and other auto manufacturers. While the brand's bZ4X had a strong start, and the updated version, now simply named bZ, presents a more compelling option, the overall growth of the U.S. EV market is lagging compared to prior years.

      Hybrid and gasoline models are still outperforming.

      Additionally, the hybrid segment is experiencing much quicker growth while the appeal of traditional gasoline vehicles, trucks, and SUVs remains strong. The Grand Highlander, offered in both gas and hybrid variants, has become so popular that Toyota urgently needs to increase its production.

      In June, the Grand Highlander emerged as Toyota's second-best-selling non-truck model, with deliveries soaring by 92 percent, whereas the leading model, the RAV4, saw a decline of 4.5 percent.

      The demand for these midsize SUVs left dealers with only a three-day supply at the end of the month, as reported by Bloomberg. Adjusting the production of the delayed 2028 EV will ensure that Toyota maintains sufficient capacity for Grand Highlander production in Georgetown going forward.