- Toyota announces $1 billion investment across factories in Kentucky and Indiana
- Kentucky will target battery electric vehicle (BEV) production.
- The Japanese manufacturer has announced three new electric models this year
As several automakers scale back their electrification strategies, Toyota appears poised for a big push, as it has not only announced three new battery-electric vehicles for this year, it also plans to invest heavily in U.S. manufacturing facilities.
This year, U.S. customers can expect to see the compact Urban Cruiser SUV, the C HR+, and an updated bZ4x model arrive, with a new all-electric, seven-seat Highlander SUV set to debut in 2027.
“Toyota is accelerating when most are slowing down,” Stephanie Valdez Streaty, Cox Automotive’s director of Industry Insights, told USA Today. “The BZ is the third best-selling electric car this year until the end of February 2026,” she added.
The article continues below
The news is further supported by the company’s announcement that it will invest in US manufacturing, with $800 million earmarked to prepare its Georgetown, Kentucky plant for production of battery electric vehicles.
According to The EV Report, the investment is part of Toyota’s November 2025 commitment to spend up to $10 billion across U.S. plants over five years.
The Japanese marque has been famously slow to offer a comprehensive range of BEVs, hedging its bets with both plug-in and mild hybrid options instead. But recent reports suggest it is moving ahead with electrification, while many other manufacturers are pulling the plug.
Analysis: Toyota plays the long game – and it pays off
Despite the gloomy headlines reporting a sharp drop in EV sales at the start of this year, demand for EVs remains strong in the US, with Cox Automotive reporting that EV sales rose 5.8% in February from January this year.
But the market remains woefully underserved when compared to Europe and large parts of Asia.
That’s because a growing number of automakers are pulling a U-Turn on their decision to launch new models or update old ones, with the likes of Acura, Honda and Dodge all saying they won’t move forward with North American EVs.
Additionally, brands such as Kia, Hyundai, Volkswagen and Volvo have all canceled or delayed plans to introduce models to the US due to volatile market conditions.
Despite this cooling in demand for new EVs, driven in part by a cut in incentives and trade tariffs that are driving up sticker prices, reports suggest the used market is booming.
Pakinomist claims that a growing number of Americans are making the used market a key entry point for buyers priced out of new EVs as federal incentives fade.
“Honestly, the best strategy is to make sure you’re selling what your customers want and that you’re also prepared for the future of what customers want,” Julia Rege, Toyota’s general manager of environmental regulation and research, said during a recent news briefing, according to USA Today.
By playing the long game and not rushing into electrification, Toyota may be well positioned to serve growing demand in the US, where volatile fuel prices are further pushing customers toward alternative powertrains.
Follow TechRadar on Google News and add us as a preferred source to get our expert news, reviews and opinions in your feeds. Be sure to click the Follow button!
And of course you can also follow TechRadar on YouTube and TikTok for news, reviews, video unboxings, and get regular updates from us on WhatsApp also.
