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.

Toyota has officially opened pre-sales of its new all-electric bZ7 in China, priced between 179,800 and 239,800 yuan for the 600 Pro and 710 Ultra LiDAR trims respectively, or roughly $26,000 to nearly $34,800 depending on the version. That aggressive entry point immediately puts it in the thick of China’s hotly competitive EV market.

But this launch is not only about affordability. It represents a clear change in the way that Toyota is approaching electric vehicles in the region.

Read: Toyota’s New Flagship Electric Sedan Is Here But Not For Us

The bZ7 has a sleek fastback design, modern without being too dramatic. At just over 5.1 meters (200.8 inches) long, 1,965 mm (77.3 inches) wide, and 1,506 mm (59.2 inches) tall, with a 3,020 mm (118.9 inches) wheelbase, it carries the proportions of a proper executive sedan. Those dimensions place it squarely alongside rivals such as the Tesla Model S, BYD Han L, and BMW i5.

Inside, the layout is clean and technology-focused. A huge 15.6-inch central display is located at the center of the dashboard, backed by the compact driver screen and head-up display. The system runs off Huawei’s HarmonyOS Cockpit 5.0, something that is important for Toyota.

Legacy automakers have long struggled to get on top of Chinese-centric ecosystems which buyers love. The adoption of HarmonyOS Cockpit not only offers sharp graphics, quick response times, and voice control features, but it will also be able to natively integrate with China’s own ecosystem of connected apps and services.

A Serious Push Into China’s Connected Car era

Toyota’s integration with Xiaomi’s smart ecosystem means that the car itself is intended to integrate with compatible Xiaomi home devices. Drivers can control select functions of a smart home directly from the interface in the vehicle and also sync personal preferences across devices. It makes the car part of a wider digital lifestyle rather than being simply a transport tool.

Advanced driver assistance comes from Momenta’s R6 system, which uses a combination of sensors and roof-mounted lidar. Features include navigation-assisted driving support and automated parking features. Higher trims focus strongly on comfort too with zero gravity seats, massage and ventilation, a premium audio system, rear seat tray tables and even a built-in refrigerator focused on rear passengers.

Powering the bZ7 is Huawei’s DriveONE electric system in conjunction with lithium iron phosphate battery packs. Depending on the trim, Toyota is claiming a driving range of between about 600-710 km (373-441 miles) under CLTC standards (so take that with a grain of salt). Still, that puts it squarely in line with important domestic competitors. That’s paired with a 207 kW (277 hp) electric motor that provides motive power.

That headline range also nudges it into the territory of the dual-motor Model S AWD, at least on paper. The Tesla, of course, operates in a very different league when it comes to outright performance, with roughly 670 hp on tap. It also sits in a completely different price bracket, starting at 842,900 yuan, or around $122,000. That works out to roughly 4.6 times the base bZ7 and about 3.5 times the price of the top-spec version.