Report: Toyota Will Build The RAV4 EV And Land Cruiser EV In The US

Reports are circulating that Toyota will build the next Lexus ES in Japan instead of in the U.S. On the other hand, the Japanese will be building two new electric SUVs in Kentucky, including one that will likely be called the Land Cruiser.

Toyota has been hinting at an electric Land Cruiser for several years, so this is no surprise. In addition, sedan sales are slowing in the United States, while crossovers and SUVs continue their popularity trend. To that end, by focusing on producing and selling SUVs in the U.S. rather than sedans, Toyota can also avoid tariffs on its most popular models.

According to a source familiar with the situation who spoke to Reuters, the upcoming electric vehicles “will be based on the Land Cruiser and RAV4.” While the wording suggests they could be directly derived from those models, it’s also possible that the source meant they could simply carry those names, even if the underlying vehicles are different.

The model, described as a three-row electric SUV based on the RAV4, could prove even more crucial to the brand’s strategy. The RAV4 is the third best-selling vehicle in America so far this year. A family electric car positioned closer to the well-known RAV4 could significantly strengthen Toyota’s electric lineup. If the electric RAV4 is anywhere near as popular as the gasoline model, it will be a big win, according to US media.

On the other hand, Toyota will shift production of the next-generation Lexus ES back to Japan, a move the company first hinted at in 2021. Meanwhile, production of the Lexus TX will remain in Indiana (USA), where the same plant is expected to increase production of the Grand Highlander.

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