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Toyota’s bZ Outsold The Prius, And Now A Second US-Made Electric SUV Is Coming
- Toyota plans to offer seven electric models in the US lineup by 2027.
- US-built Highlander EV will be joined by another electric SUV.
- EV sales are climbing, with the bZ outselling the Prius in Q1 2026.
While much of the industry is quietly backing away from aggressive EV rollouts, Toyota is doing the opposite. The company is doubling down on its zero-emission push in North America, wagering that more Americans are ready to make the switch, even after the scrapped tax credits and incentives last year.
By 2027, Toyota plans to offer seven fully electric models in the country. Among them is a still-unnamed mystery SUV that will be built in the United States.
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Right now, the Japanese automaker’s North American EV lineup sits at four models, and all of them are imported. That group includes the Toyota bZ, bZ Woodland, C-HR, and Lexus RZ. A fully electric Lexus ES sedan is set to arrive later this month, with the all-electric 2027 Toyota Highlander scheduled to follow in late 2026.
North America EV Expansion Plans
The Highlander EV marks a turning point for the brand. It will be the first electric Toyota built in North America, assembled in Kentucky, with batteries sourced from North Carolina. But this is really just the first step in Toyota’s USA EV strategy.
According to a Bloomberg report, the second US-built EV is set to be an SUV already in development. Details remain scarce, including its size and where it will fit within the lineup, but production is also slated for Kentucky, with a planned start in 2027.
Mark Templin, executive vice president and chief operating officer at Toyota Motor North America, says the company plans to give buyers “multiple options.” The idea is fairly simple: if Toyota can secure 15% of the overall market in the US, it should be able to capture a similar share of the EV segment.
He also gave a better sense of who these upcoming EVs are meant to attract, referring to them as “Tesla killers.” The target, in his view, is a familiar group.
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“We’ll probably see what I call boomerang customers, people who loved Prius for being the greenest car in the industry that maybe went to a Tesla – and then we get those people back. Two weeks ago in Japan, I drove three of our future battery electric cars. They’re fantastic. And I think they’re going to be Tesla killers.”
Recovering After A Rough Start
Toyota didn’t exactly nail its first swing at EVs. The bZ4X landed with a bit of a thud, but things are starting to look promising. The updated bZ and the related Lexus RZ are finally gaining traction, with deliveries more than doubling in March 2026.
The numbers are revealing, with the bZ reaching 10,029 sales in Q1 2026, up from 5,610 a year earlier, a jump of about 79%. Over the same period, Prius sales fell to 9,737 from 16,653, a drop of roughly 42%. That’s been enough for the bZ to move ahead of the Prius so far this year, which shows just how quickly things can flip.
Hybrids Remain The King
Even so, hybrids are still doing the heavy lifting. They made up 55% of Toyota’s North American sales in March 2026, up from 49% a year earlier. And that number probably doesn’t tell the whole story, since plenty of buyers are still stuck on waiting lists despite factories running flat out.
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Toyota clearly knows where its strength lies. The company has committed $10 billion to its U.S. operations in the coming years, including $1 billion to expand plants in Kentucky and Indiana. EVs are part of the plan, but hybrids remain the safe bet that keeps the numbers moving.
