Toyota is reportedly re-engineering its midsize, three-row Highlander SUV as an all-electric vehicle, with an anticipated launch for the 2027 model year, according to a report from industry publication Automotive News. This strategic shift comes as the conventional Highlander faces significant sales cannibalization from the recently introduced Grand Highlander, prompting Toyota to redefine the Highlander nameplate's market position within its expanding electrified portfolio. The electric Highlander is expected to enter dealerships as early as 2026.

The decision to electrify the Highlander addresses a notable market dynamic where the Grand Highlander, offering more passenger and cargo space for a marginal price increase, has significantly impacted the standard Highlander's sales. Monthly sales figures for the Highlander in 2025 have seen a nearly 50% reduction compared to 2024, with buyers largely migrating to the Grand Highlander rather than leaving the Toyota brand. By transforming the Highlander into an EV, Toyota aims to attract a distinct segment of buyers, clearly differentiating it from its larger, gasoline-powered counterpart.

While Toyota has not officially confirmed the electric Highlander, the company recently stated its intention to produce "two all-new, three-row battery electric SUVs in the U.S." Industry analysts widely interpret the smaller of these two planned EVs to be the electric Highlander. The identity of the larger, as-yet-unnamed electric SUV remains undisclosed. This development signals Toyota's commitment to expanding its battery electric vehicle (BEV) offerings, particularly in the highly competitive and profitable SUV segment.

Furthermore, the potential electric Highlander's branding suggests a possible evolution in Toyota's EV naming strategy. Historically, Toyota's electric vehicles have utilized the "bZ" (beyond zero) moniker, as seen with the bZ4X and bZ Woodland. However, the recent launch of a new, smaller EV under the resurrected C-HR nameplate indicates a potential move away from the "bZ" branding in favor of established model names. An all-electric Highlander would seamlessly integrate into this revised strategy, leveraging existing brand recognition to accelerate EV adoption. This strategic pivot underscores Toyota's adaptive approach to the rapidly evolving electric vehicle market, aiming to capitalize on strong brand loyalty while meeting growing demand for sustainable mobility solutions.