Toyota Adds EVs To Its Lineup In US And China

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Toyota, the stodgy “take no chances, hybrids are good enough” company, is bucking the trend away from electric cars sweeping the US. While Ford, GM and Hyundai/Kia are all reallocating factories to produce more gas-sucking SUVs and pickups with internal combustion engines, Toyota is stepping forward. On March 23, 2026, it announced in a press release that it will invest $1 billion between its Kentucky and Indiana plants to boost domestic production.

Of that $1 billion, $800 million will be used to make its Georgetown, Kentucky, factory ready to produce a second electric vehicle. Recently, the company said the next generation Highlander, due in 2027, will be offered exclusively with an all electric powertrain. The Georgetown factory is where the Camry and RAV4 are manufactured. The remaining $200 million will expand Grand Highlander production at its Princeton, Indiana, plant, which also builds the Sienna minivan and the Lexus TX SUV.

What the second new US-made EV will be is unknown at this time. At its Beyond Zero EV roadmap event in 2021, Toyota showcased what it called a Lexus Electrified Concept, a large SUV that would serve as a more premium counterpart to the new Highlander. If so, it would compete with the Cadillac Vistiq and Rivian R1S.

Speculation is just that and worth precisely what you paid for it. Toyota could also decide to build a Subaru-branded companion to the new Highlander in Kentucky or a new Lexus model in Indiana.

“Toyota has already shifted its EV ambitions into high gear. The brand has two new models and one substantially refreshed model on sale for 2026. The updated bZ, formerly the bZ4X, is now on sale with a cleaner design, more range, and faster charging, including a native NACS port straight from the factory.

“It’s joined by the compact, sportier C-HR and the adventure-ready bZ Woodland wagon. Similarly, Lexus also has a heavily updated RZ crossover and an all-new ES sedan, which now comes in hybrid and EV trims only. For an automaker that was once skeptical of going all-in on EVs, that’s a pretty meaningful change in strategy,” proclaims Inside EVs.

bZ7 Introduced In China

What may be far more significant for the company is not taking place in the US, but rather in China. Twenty years ago, automakers from the US, Europe, and Japan beat a path to China. At the time, Chinese-made cars were of notoriously poor quality and tended to fold up like a cardboard suitcase in any collision at speeds above 3 mph. The legacy automakers thought they could teach the Chinese a thing or two about manufacturing, and they did. But the Chinese learned from their mentors and now build higher quality cars than any other nation.

This week, Toyota introduced the bZ7 sedan in China, but there is precious little Toyota DNA in the car. According to CnEVPost, the powertrain for the new car does not come from Toyota or GAC, its manufacturing partner.  Instead it is sourced from Huawei, which has been expanding into the automotive sector in recent years.

Specifically, the bZ7 is equipped with the Huawei Drive ONE drivetrain system, an integrated platform that combines the electric motor, inverter, and transmission into a single unit. It delivers a power output of 207 kW (278 HP) and a top speed of 180 km/h (110 mph). In addition, the bZ7 features Huawei’s HarmonyOS 5.0 operating system for its intelligent cockpit.

The car is powered by LFP batteries supplied by CALB. Two battery packs will be available — 88 kWh and 71 kWh. With the larger battery, range is said to be 710 km (430 mi) using the highly optimistic CLTC testing standard. Range with the smaller battery is said to be 600 km (365 mi). The maximum charging power is rated at 128 kW.

The Toyota bZ7 also includes an advanced driver-assistance system — ADAS — from Chinese specialist Momenta, which uses 27 sensors and can be deployed in both urban and highway traffic. The premium version of the system adds a Lidar sensor, which makes ‘Navigation on Autopilot’ available. The bZ7 is equipped with a dual chamber air suspension system, and the interior offers zero gravity seats to enhance the ride experience.

But Wait, There’s More!

By most standards, the new bZy7 is a handsome vehicle with contemporary styling that avoids the creases and crinkles in the sheet metal so popular with many manufacturers today (especially Lexus). Squint a little and the bZ7 looks like a cross between a Tesla Model 3 and Model Y. It is 5.13 meters (17 feet) long and has a 3.02 meter (9.9 foot) wheel base.

Now here is the best part. The base car is priced at 147,800 yuan  (€18,490), with the top of the line model priced at 199,800 yuan (€24,997). Export to other markets is considered unlikely, Electrive says. That’s a pity. Remember the lines out the door and down the street to reserve a Model 3? That’s exactly what would happen if the bZ7 became available at these prices outside of China.

It is the second battery-electric vehicle introduced by GAC Toyota recently, the other being the very attractive bZ5 — a crossover-type vehicle that starts at about the same price as the bZ7. For that car, GAC Toyota tapped BYD for the batteries, so it is clearly willing to shop around when it comes to choosing a battery supplier.

The knock on electric cars is that they cost too much. That’s not going to be an issue too much longer.