EXCLUSIVE: TOYOTA HIGHLANDER GOING ELECTRIC AS PART OF TOYOTA'S MASSIVE EV RAMP-UP

When it comes to EVs, few automakers have expressed more skepticism than Toyota, the Japanese giant putting equal emphasis on hybrids, plug-ins, and even fuel-cell vehicles. Yet, after a slow start, Toyota has plans to roll out an assortment of battery-electric vehicles starting in 2026 and at least one of its familiar nameplates is now scheduled to go 100% electric.

Toyota earned plenty of kudos when it launched the world’s first mass-market hybrid-electric vehicle, the Prius, more than a quarter-century ago. At one point, the quirky little hatchback was the darling of green-minded celebrities like Leonardo DiCaprio and the best-selling vehicle in California. In recent years, however, Toyota has come under fire from environmentalists due to its avowed skepticism about battery-electric vehicles.

The Japanese giant offers only two EVs in the U.S. right now – the Toyota bZ4X and the Lexus RZ. It won’t expand that line-up for another two years. But, beyond that, CarBuzz has learned, it’s getting ready to roll out an assortment of all-electric models. And parts of the plan now coming together could take Toyota fans by surprise.

“We have always been committed to building BEVs,” David Christ, the general manager of the Toyota division in the US, told CarBuzz following this week’s debut of the 2025 4Runner. “And you’re going to see more BEVs from us in the future.”

What’s in a name?

The first Toyota-branded EV adopted the unusual badge, bZ4X. The first part of the name is shorthand for “Beyond Zero,” the “4” representing the vehicle’s size class, and the “X” signaling its availability with all-wheel-drive.

The next model, set to reach US showrooms in 2026, will be a compact, or C-segment, battery-electric crossover. Using that nomenclature, it is expected to be called the bZ3X. Toyota is also scheduling a compact sedan to launch around the same time. And a similarly sized crossover for the Lexus brand is likely to reach the US later in the year or in early 2027, according to a number of sources who spoke on background to CarBuzz.

Notably, however, Toyota planners are debating whether to abandon the less-than-memorable bZ badging strategy and could opt to return to more conventional – and, in some cases, familiar names.

A familiar nameplate set to go all-electric

One future EV is all but certain to go that route, according to current plans. Perhaps the single biggest surprise in the Toyota roll-out plan, CarBuzz has confirmed, is the decision to convert the familiar Highlander SUV to an EV-only model. Crucially, this model will be built locally at the brand's Kentucky plant, Toyota's first US Battery Electric Vehicle (BEV) assembly site. This model will also spawn a Lexus variant, expected to be called the TZ, for which CarBuzz discovered trademark filings late last year.

To avoid leaving ICE fans out in the cold, the bigger, three-row Grand Highlander will continue to use more conventional drivetrain technologies, Toyota likely offering both conventional hybrid and plug-in hybrid options.

Plenty of hybrids in the plan

With the 2025 Toyota 4Runner, buyers will have the option to upgrade to the iForce Max powertrain. It marks the 19th model the brand now offers in the US with an available hybrid. More and more prevalent in Toyota's lineup are hybrid-only models, like the 2025 Camry and Crown Signia.

So strong is Toyota's commitment to hybridizing its lineup that, for the 2025 model year, the Toyota GR86 and Supra are the only products that don’t offer a hybrid option. Christ declined to say whether those models will be electrified in the future.

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He did confirm, “We’re going to expand plug-in availability throughout the line-up fairly quickly.” And while he didn’t name names, Toyota sources said the next models to get PHEV options will be the Sequoia SUV and Tundra and Tacoma pickups. Previously, Mike Sweers, executive chief engineer for the Tundra, Sequoia, Tacoma, and 4Runner vehicle programs within Toyota Motor North America, told us that the US market wasn't ready for electric versions of the Tundra and that there were many infrastructural hurdles to overcome before such a model became viable.

But Sweers also told us that a plug-in Tundra may be in the cards, so long as it meets customer expectations and can be used in the way truck owners use their vehicles. On the topic of Toyota's PHEVs, expect to see the manufacturer increase the all-electric range for its plug-ins. The revised emissions rules announced by the EPA this month encourage the use of the technology – but it also requires the vehicles to effectively be able to meet most motorists' daily driving needs purely on battery power.

Revised plans causing chaos within Toyota

Akio Toyoda, the former Toyota CEO who gave up day-to-day management last year, was an open skeptic of EV technology. His successor, Koji Sato, remains committed to a “portfolio approach” that includes HEVs, PHEVs, and fuel-cell vehicles, but he has expanded Toyota’s investments in pure EVs. Among other things, Sato has called for major revisions to the underlying platforms the company was developing. That has created a bit of chaos, a well-placed company source telling CarBuzz, “We keep revising our plans.”

But several things are certain. According to Christ, “I think you’re going to see better bZs in the future and other BEVs.” While he declined to say what changes are being made, future models are expected to deliver significantly longer range and better performance.

Next-generation batteries feature strongly in Toyota's ambitions

That should become apparent on a limited-edition Lexus model, which some are calling the LC Sport, set to make its debut around 2027. Significantly, it could be the first model from Toyota to use next-generation solid-state batteries.

Last year, Toyota indicated it hopes to have that technology ready for low-volume production around that timeframe. Whether it can pull that off is far from certain. Many industry experts bet that solid-state batteries might not be ready until close to 2030.

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The automaker has said the first batch of solid-state batteries will only supply a small percentage of its vehicles.

How this plays out will likely impact some of the EV projects Toyota is exploring. That includes an all-electric compact pickup and even a battery-powered version of the midsize Tacoma. These are “not off the table,” said a source, though Toyota planners question whether they can deliver competitive offerings were they to use today’s lithium-ion cells.

Toyota is also moving forward with work on an EV version of the full-size Tundra. But it is hesitant about taking it into production and is closely watching how the market embraces offerings such as the Ford F-150 Lightning, the Rivian R1T, the Chevrolet Silverado EV and the Tesla Cybertruck. Initial demand appeared strong but has withered in recent months.

More to come, but a cautious approach has paid off

Toyota is by no means the only automaker rethinking its EV plans. Indeed, other manufacturers that were focusing specifically on battery-electric technology are now more open to mimicking the Japanese company’s portfolio approach.

General Motors CEO Mary Barra recently said GM will add some PHEVs to its line-up, even though it remains, long-term, on what she calls “a path to an all-electric future.” Ford CEO Jim Farley this month said he’s ordered a delay in bringing a three-row electric SUV to market and will focus more resources on hybrids, while a new “skunkworks” team targets smaller, more affordable EVs.

“Electric vehicles are so early in the process that automakers need to find out what the pain points are for customers,” said Stephanie Brinley, principal automotive analyst at S&P Global Mobility. At the same time, automakers have to respond to the new EPA guidelines that will make EVs a significant part of their future product portfolios.