After more than two decades of a strong presence in the crossover market, Toyota is preparing to introduce a fully electric version of its well-known Highlander. This move is part of a broader strategy to enhance its position in the electric vehicle sector, especially given the declining sales of traditional Highlanders, which peaked in 2021 at over 264,000 units in the United States but fell to only 56,000 units by 2025. The company's shifting focus is a response to increased competition and shifting consumer preferences toward larger models like the Grand Highlander.

The Highlander has been a popular choice for families since its launch in 2000, benefiting from a unibody structure shared with the Toyota Camry that allows for a more comfortable ride compared to body-on-frame SUVs. Its reputation was further established by the introduction of a hybrid version, following the success of the Toyota Prius, the automaker's first widely adopted hybrid vehicle. However, looking ahead to model year 2027, Toyota has decided to discontinue gasoline and hybrid versions of the Highlander, signaling a significant commitment to electric powertrains.

This transformation in Toyota’s lineup reflects broader industry trends where automakers are increasingly prioritizing electric vehicles to meet environmental standards and consumer expectations. As other manufacturers continue to innovate within the EV space, Toyota's strategic pivot to electric vehicles with the Highlander aims to capture a share of the growing demand for sustainable transportation options, potentially reshaping the hybrid and electric vehicle landscape in North America.