The Highlander Goes All-Electric in 2027
Toyota is making one of its boldest electrification moves yet: the next-generation Highlander, arriving in 2027, will be offered exclusively as a battery-electric vehicle. There will be no gasoline version, no hybrid option, and no plug-in hybrid hedge. One of the most recognizable three-row SUV nameplates in the American market is going fully electric at a time when the broader EV landscape is turbulent and consumer sentiment is mixed.
Dave Christ, Toyota Motor North America Group Vice President, framed the decision in deliberately confident terms during a recent interview with Automotive News. "This is not a niche product. There will be volume," Christ said. "Other mass-market brands have been selling EVs in higher volume than us for several years, and we think we felt one of our portfolio holes was not having EV options in the showroom." Toyota plans to launch four new electric models as part of this push, with the Highlander serving as the flagship of the effort.
A Calculated Risk With a Built-In Safety Net
The strategy is less reckless than it might appear on the surface. Toyota has a natural insurance policy in the Grand Highlander, the slightly larger sibling that debuted a few years ago and will continue to be sold with both gasoline and hybrid powertrains. Buyers who are not yet ready for an electric SUV can simply move up in size without changing brands or dealerships. The company is essentially splitting its three-row SUV market in two: the Highlander for EV adopters, the Grand Highlander for everyone else.
The sales data supports this approach. In 2021, Toyota moved more than 250,000 Highlanders in the United States. By 2025, that figure had cratered to fewer than 60,000 units. Meanwhile, Grand Highlander sales surged to 136,000 units last year on a 90 percent year-over-year increase. The traditional Highlander buyer has already migrated to the larger vehicle. Replacing the declining model with an electric variant risks relatively little volume while potentially capturing an entirely new segment of customers.
