Toyota Delays 2027 Highlander EV As Demand For Gas Model Remains Robust

The Highlander EV was supposed to arrive by the end of this year. It will now have a new launch timeline.

2027 Toyota Highlander EV

Photo by: Toyota

Suvrat Kothari

By: Suvrat Kothari

Jul 9, at 11:17am ET

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Toyota is delaying the 2027 Highlander EV.
The automaker said the model will get some additional adjustments ahead of launch.
Sales of the current gas and hybrid Highlander have been robust, which may explain the hold-up.

Toyota's electric vehicle offensive has been strong this year, with three new or refreshed models now available stateside. The automaker now sells the updated bZ, the new C-HR, and the bZ Woodland, which all have mechanically similar Subaru siblings. Lexus, too, has gotten a new electric model, the ES, with another that's supposed to launch toward the end of the year.

A fourth electric Toyota model, the fifth-generation Highlander, was in the pipeline, but it now looks like it won't meet its original end-of-year launch timeline. A Toyota spokesperson confirmed to InsideEVs that the electric Highlander has been delayed, though the company did not specify how long the delay will last. Cars.com first reported the news on Wednesday.

“Additional adjustments are being made to the vehicle prior to launch,” a Toyota spokesperson told InsideEVs. “We will update on-sale timing when start of production is confirmed,” he said. It’s unclear what these adjustments are, and the automaker did not explicitly attribute the delay to the current Highlander’s strong sales.

Gallery: 2027 Toyota Highlander EV

2027 Toyota Highlander EV

Source: Toyota

That's notable because the Highlander signaled Toyota's strongest attempt at EVs yet, after years of being labeled a laggard on electrification. Earlier this year, the automaker decided to fully electrify one of its most popular nameplates. The fourth-generation combustion Highlander has been on sale since 2019 and is now showing its age.

As a result, Toyota plans to make the Highlander an EV-only nameplate starting with model year 2027, dropping the gas and hybrid versions. It's the first Toyota model to be wholly replaced by an EV. Buyers who still want a combustion-powered Highlander can opt for the Grand Highlander instead. The three-row electric SUV also has planned Subaru and Lexus equivalents, called the Getaway and TZ.

But EV sales in the U.S. have hit a reset this year following the end of federal tax credits and the rollback of fuel economy standards, which cut automaker penalties to $0. That means automakers are no longer as incentivized to push EVs, and the market seems to be embracing hybrids much faster than electric models.

Sales of the current ICE Highlander, which Toyota plans to discontinue, are up 6.7% year to date, with over 32,000 units sold in the first six months of the year. The Highlander EV, however, is an order of magnitude more modern than that version, offering up to 320 miles of range, 338 horsepower, and bidirectional charging capability.

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It will also be the first EV Toyota manufactures in the U.S., built at its Kentucky plant using batteries assembled at its North Carolina battery factory. For now, the popular 2026 Highlander will stay in production through the end of the year, and could still be sitting in dealer lots well into next year.

Contact the author: suvrat.kothari@insideevs.com