Inside Toyota’s Plan to Expand U.S. EV Lineup and Production

Toyota Motors posted one of its highest sales in the U.S. last year, beating competitors like General Motors and Ford. The Japanese company is betting on EVs to maintain its leadership in the U.S. auto industry, Yahoo Finance reported. To this end, Toyota is working towards adding four electric vehicle models to its U.S. EV manufacturing lineup by the end of 2026.

“By the end of this year, we’re going to have four BEVs [battery electric vehicles], up from just one that we’re selling today,” Toyota Motor North America Group VP and General Manager, David Christ noted.

Which EV Models is Toyota Adding to its U.S. Lineup?

Toyota’s EV lineup expansion in 2026 will span a range of vehicle models. The first is the compact C-HR, which the company described as a fun, urban battery-electric vehicle. Toyota says this EV model has already generated positive feedback from consumers and dealers.

The next electric vehicle model that the automaker plans to introduce is the bZ Woodland. This EV is more rugged and bigger. It is designed for customers who wish to bring outdoor gear with them. Toyota also plans to introduce an electric Highlander later this year. This BEV seven-passenger SUV will be built in the U.S. and will carry the ‘made in America’ tag

Toyota is expanding its U.S. EV lineup at a time when demand for electric vehicles appears to be dropping. This week, Tesla’s Q1 EV deliveries dropped amidst stiff competition in Europe and China, and uneven demand for its electric vehicles.

Toyota Plans to Make EVs in the U.S.

The automaker plans to build several EV models in the U.S. Recently, the company announced that it will be investing an additional $11 billion in North America to expand production capacity in Indiana and Kentucky. The company already runs a $13.9 billion battery plant in North Carolina.

”We want to sell where we build and build where we sell. So we’re going to continue to invest in the U.S. and manufacturing,” Christ added.

Toyota already produces a significant portion of its vehicles in North America. About 85% of the vehicles sold in the U.S. are manufactured in North America. About 55% of them are built in the U.S.

The company is also expanding EV production capacity in Europe. Last year, the automaker announced plans to build a BEV model in the Czech Republic. This will be Toyota’s first fully-electric car to be made in Europe.

What U.S. Production Means for Toyota

By building EVs in the U.S., the Japanese automaker has managed U.S. EV tariffs better compared to some of its competitors. However, some models like Tacoma and GR Corolla have been affected by tariffs. Tacoma vehicles, which are produced in Mexico, are subject to a 25% tariff. Toyota estimates that import levies for the period ending March 2026 could reach $9 billion, which is the highest tariff costs in the U.S. auto industry.