In addition to the Highlander, we have previously covered noteworthy developments regarding the Toyota RAV4. This compact SUV, currently offered exclusively as a hybrid or plug-in hybrid, remains highly sought after among American consumers. Earlier this year, reports indicated that demand consistently outpaced supply, with buyers frequently purchasing previous-year models at full price.
The RAV4 shortage also contributed to a surge in popularity for the 4Runner, which saw notable sales growth this year. While Toyota initially struggled to meet production requirements, the brand has since begun to address these issues and has reported a successful expansion of manufacturing output.
Despite these efforts, Toyota continues to face stiff competition, particularly from Honda, which achieved record-breaking sales figures during the first half of 2026. The Honda CR-V is currently poised to challenge the RAV4’s market dominance, a development that represents an unexpected shift in the competitive landscape.
Toyota has announced a delay in the production of its upcoming three-row electric SUV, which is now expected to commence in 2027. According to reports from Cars.com, this adjustment allows Toyota to continue production of the 2026 model-year Highlander—offered in both internal combustion engine (ICE) and hybrid (HEV) configurations—through December 2026.
While the electric vehicle market continues to expand, there remains significant consumer preference for traditional and hybrid powertrains, segments in which the Highlander continues to demonstrate strong sales performance. Although production delays are generally undesirable, this strategy allows Toyota to capitalize on sustained demand for its proven vehicle platforms while simultaneously stabilizing supply chains for other popular models, such as the RAV4. Consequently, while the redesigned all-electric Highlander offers an appealing aesthetic, consumers are currently prioritizing the reliability of established powertrain technologies. Toyota aims to leverage this market demand until the electric variant officially enters production in 2027.
