Toyota Delays Electric Highlander to 2027, Risking U.S. Inventory Gap
A shift to a 2028 model year launch creates a window where no new Highlander models may be available in showrooms.
Toyota has pushed back the launch of its first three-row electric SUV, delaying production of the electric Highlander until at least the first quarter of 2027. The vehicle will now enter the market as a 2028 model, a move that threatens to leave a significant void in the company's most popular family vehicle lineup.
This delay creates a precarious production timeline. Toyota is scheduled to end production of the current gas and hybrid 2026 Highlander models in December 2026. Because the electric successor will not begin production until at least Q1 2027, a production gap may emerge where no new Highlander models are available for purchase. This inventory risk is already evident; as of September 10, Toyota dealers nationwide held only approximately a 20-day supply of the vehicle.
Production and Specifications
The electric Highlander is slated for production at Toyota's Georgetown plant in Kentucky. The delay extends beyond Toyota's own fleet, as the Subaru Getaway—which shares both the Kentucky production site and its underlying architecture—has also been pushed back to at least the first quarter of 2027.
On the technical side, the electric Highlander will offer two distinct battery configurations to compete in the high-capacity SUV segment. A 77 kWh battery option will provide a range of up to 287 miles, while a larger 95.8 kWh battery will extend the range to 320 miles.
Market Implications
This timing creates a strategic vulnerability for Toyota in the competitive three-row SUV market. By delaying its entry, Toyota grants established competitors, specifically the Kia EV9 and Hyundai IONIQ 9, more time to secure market share and establish dominance in the electric family vehicle space.
For dealerships, the prospect of a missing flagship model is concerning. Steve Gates, owner of Gates Auto Family in Kentucky, noted that not having the Highlander available "will be difficult," even if the shortage is only temporary. The Highlander has long been a cornerstone of Toyota's U.S. sales strategy, and any prolonged absence from showrooms could negatively impact overall revenue goals.
The Road Ahead
Toyota's cautious approach follows a history of early EV struggles, most notably the 2022 stop-sale and urgent recall of the bZ4X. While the company aims for a smoother rollout with the Highlander, the immediate challenge is managing the transition from internal combustion to electric without losing customers to rivals.
Industry observers will be watching to see if Toyota adjusts the production end-date for the 2026 gas and hybrid models to bridge the gap, or if the company will rely on existing dealer inventory to survive the transition into 2027.