Announced on September 12, 2025, Toyota’s decision to produce electric versions of the RAV4 and Land Cruiser in Georgetown, Kentucky, reflects a response to growing EV demand and shifting market dynamics. The RAV4, America’s third-best-selling vehicle in 2025, and the Land Cruiser, a symbol of rugged durability, are poised to bring Toyota’s EV offerings closer to mainstream buyers. Unlike the current bZ4X, which has struggled to compete, these new models aim to capitalize on the familiarity and trust associated with these established names.
According to Reuters, both SUVs will be three-row vehicles built on Toyota’s e-TNGA platform, a dedicated EV architecture distinct from their gas-powered counterparts. Production at the Kentucky plant, which also assembles the Lexus ES sedan, is expected to bolster Toyota’s U.S. manufacturing footprint, with an estimated output of over 1.3 million vehicles annually.
The Electric RAV4: A Game-Changer for Families
The electric RAV4, positioned as a family-oriented three-row SUV, could redefine Toyota’s EV presence. The gas-powered RAV4’s popularity—surpassing even the Ford F-150 in 2024—stems from its reliability, affordability, and versatility. An electric version, potentially offering a range competitive with rivals like the Tesla Model Y (around 300 miles), could attract families seeking eco-friendly alternatives without sacrificing practicality.
While specific details like battery size and performance remain undisclosed, the RAV4 EV is expected to prioritize efficiency and affordability, addressing the bZ4X’s lukewarm reception. Its three-row configuration makes it a direct competitor to models like the Rivian R2, also slated for 2026, and could help Toyota capture a significant share of the growing family EV market.
The Land Cruiser EV: Rugged Meets Electric
The electric Land Cruiser, inspired by the 2023 Land Cruiser Se concept, promises a sleek, asphalt-oriented design rather than the off-road focus of its gas-powered sibling. Measuring close to the Toyota Grand Highlander, it will offer three rows of seating, appealing to buyers seeking a premium, spacious EV. Unlike traditional Land Cruisers, known for overlanding, this model emphasizes on-road refinement, potentially featuring advanced driver-assistance systems and a luxurious interior.
Built on the e-TNGA platform, the Land Cruiser EV is likely to prioritize range and comfort over rugged terrain capabilities. Its production in the U.S. aligns with Toyota’s strategy to localize manufacturing, reducing exposure to import tariffs and enhancing supply chain efficiency.
Economic and Market Implications
Toyota’s investment in U.S. production reflects a broader strategy to navigate trade policies and capitalize on domestic incentives. The Kentucky plant’s role in building these EVs, alongside hybrids like the Camry and RAV4, underscores Toyota’s commitment to electrification while maintaining its hybrid legacy. The move is part of a larger plan to launch seven new battery-electric vehicles in the U.S. by mid-2027, including the C-HR EV and bZ Woodland in 2026.
The RAV4 and Land Cruiser EVs could significantly boost Toyota’s EV market share, which has lagged behind competitors like Tesla and Hyundai. By leveraging iconic nameplates, Toyota aims to appeal to loyal customers hesitant to adopt models like the bZ4X. However, competition from affordable EVs, such as Zero Motorcycles’ XE and XB, and established players like Rivian, will require competitive pricing and robust performance.
Challenges and Future Outlook
Producing EVs in the U.S. helps Toyota mitigate tariff risks, but challenges remain. The e-TNGA platform, while versatile, must deliver competitive range and charging speeds to match rivals. Additionally, the high cost of developing three-row EVs could strain margins, especially as Toyota navigates a global slowdown in EV sales, as seen with General Motors and Volkswagen pausing production in 2025.
The 2026 launch timeline aligns with Toyota’s broader electrification goals, but consumer adoption will hinge on factors like pricing, range, and infrastructure. With the U.S. grid facing pressure from rising data center and EV demand, Toyota’s ability to secure reliable battery supply chains and charging networks will be critical.
A Bold Step for Toyota’s EV Future
Toyota’s decision to produce electric RAV4 and Land Cruiser models in Kentucky signals a bold pivot toward electrification, leveraging two of its most recognizable nameplates. Set to roll out in 2026, these three-row SUVs promise to blend familiarity with innovation, targeting mainstream buyers and reinforcing Toyota’s U.S. presence. As the EV market evolves, these models could redefine Toyota’s role in the electric future.
