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Toyota is still struggling to sell EVs so it’s back to gas-powered SUVs
As it struggles to sell EVs in the US, Toyota is resorting to bigger, gas-powered SUVs. That new Toyota electric SUV we are still waiting on? It’s delayed again, but there’s more to it.
Toyota pushes to sell gas SUVs as EV sales slump
Toyota sold 1,223 models of the bZ4X, its sole electric SUV in the US, last month. That’s less than the nearly 1,400 it sold in June 2024 despite upgrading it for the 2025 model year.
Through the first half of 2025, Toyota has sold 9,249 bZ4X models in the US, down from the nearly 9,500 sold in the same period last year.
Its luxury Lexus brand is also struggling to sell its electric SUV, the RZ. Last month, Lexus RZ sales fell 30% to just 763 units. Through the first half of 2025, RZ sales are down by a third (-33%), with just 3,779 units sold.
As the struggles continue, Toyota is now delaying more EV models as it shifts its focus back to gas-powered SUVs.
Toyota plans to begin producing a new electric SUV at its Kentucky plant in 2028, a year later than initially expected. The new EV was scheduled to be built at the automaker’s Princeton, Indiana, facility, following an additional $1.4 billion investment made last April.
According to AutoNews, the sudden shift is to free up capacity for its massive gas-powered Grand Highlander SUV.
Toyota is consolidating EV production and will build the new EV in Kentucky alongside a separate three-row electric SUV. The larger electric SUV is set for production in late 2026, rather than earlier in the year as initially planned.
“As previously announced, Toyota plans to produce two all-new, three-row battery electric SUVs in the US. Toyota will now assemble both vehicles at Toyota Kentucky,” Toyota said in a statement.
Toyota will ramp up production of the Grand Highlander in Indiana with a new dedicated assembly line. Through the first half of 2025, Toyota Grand Highlander sales are 20% with over 65,000 units sold.
Despite the delay, Toyota is still planning to launch seven new EVs in the US by mid-2027, including under the Lexus brand.
Later this year, Toyota will introduce the new bZ electric SUV (an upgraded bZ4X) with more driving range and an added NACS port to charge at Tesla Superchargers.
The smaller Toyota C-HR and rugged bZ Woodland electric SUVs are expected to arrive sometime next year.
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