Peter Lyon
June 2, 2025
There’s some big news from Toyota. According to Bloomberg, Japan’s No 1 carmaker plans to launch seven new all-electric cars in North America by 2027. At the company’s US headquarters in Plano, Texas, last week, five were shown to media. Among the new EVs on display were the new C-HR, the larger all-terrain bZ Woodland, the upgraded RZ, the brand-new ES sedan and the refreshed bZ.
For the time being, the sixth and seventh models are still under wraps. A long-awaited three-row electric SUV, however, is rumored to be at least one of them. It may also be the commercial version of the 2021 “bZ Large SUV” concept.
Meanwhile, other major models are switching to hybrid. The Camry and RAV4, two of Toyota’s best-selling models, will only be available in hybrid form from now on. In order to reduce emissions and ease the strain on the gas engine, every trim of both vehicles will now use an electric motor and a lithium-ion battery.
Interestingly, the growing number of electric vehicles over the next few years is only the beginning of a larger drive towards electrification.
However, the five models EVs exhibited show potential. With its increased range of more than 300 miles, improved performance, and other features, the revised bZ may help Toyota increase sales. If it is reasonably priced, it may even serve the same purpose as the Equinox does for Chevrolet. As far as luxury goes, the updated Lexus RZ could well play a similar role to Cadillac’s Lyriq, which is a high-end, fashionable EV that encourages more affluent consumers to switch to EVs.
As you’d expect, two of the seven EVs will be built in the United States, most likely using domestically made batteries from Toyota’s facility in North Carolina. The three-row SUV is anticipated to be the first; the second is still unknown.
By 2027, every Toyota and Lexus dealership, will offer a fully electric option in every major segment. That’s part of the brand’s “multi-pathway approach” in which Toyota will offer gas, hybrid, plug-in hybrid, fuel-cell, and EV options so customers can pick the powertrain that works best for them.”
Several analysts agree that it may be risky to build two mass-market EVs in the United States, particularly given the current political and regulatory environment, namely tariffs. The already difficult economics of EV manufacturing are being harmed by the Trump administration’s plans to reduce pollution targets and eliminate EV tax credits. EVs are still one of the most capital-intensive investments in the business, and no carmaker in the US has made money on them outside of Tesla.
Toyota is still making progress, though. That probably indicates that the business anticipates significant growth in the future. Generally speaking, Toyota doesn’t put a new model into production unless it anticipates selling 100,000–150,000 cars year. In this instance, however, it will export the cars to markets with high demand if domestic EV sales are not sufficient.
Cooper Ericksen, senior vice president of planning and strategy at Toyota, told Bloomberg, “We believe it’s a really important segment that we don’t want to give up to the competition in the future.”
CARLIST THOUGHTS
Competition is intensifying in the EV space, and Toyota doesn’t want to fall behind. Not again. Nearly half of the US EV industry is still dominated by Tesla, even with the recent fall in sales, with more affordable versions available soon. The EV lineups of General Motors, Hyundai, and Kia are all growing, particularly in the popular crossover and big family SUV markets in the United States. And Toyota plans to keep up this time.
