The Toyota Highlander has long been a cornerstone of Toyota’s SUV lineup in North America, with its popularity cemented over several generations.
Originally launched in 2001, the Highlander remains one of Toyota’s bestselling models, though it faces challenges in adapting to the changing automotive landscape. Let’s explore its current generation, its competition with the Lexus RX, and the future of this versatile SUV.
The fourth-generation Highlander debuted around 2018, built on Toyota’s T&J platform. When it launched, it was accompanied by the fourth-generation hybrid system.
This technology placed it in competition with the Lexus RX, which shared similar powertrains but targeted a different market. However, updates in the RX lineup, such as the introduction of a 2.4-liter hybrid system in the fifth generation, showcased how the luxury arm stayed ahead in terms of innovation..
Electrification Mandates
As automotive regulations evolve, manufacturers face increasing pressure to transition to electric vehicles (EVs). By 2026, CARB (California Air Resources Board) mandates require 35% of vehicle sales in select states to be EVs, with some allowance for plug-in hybrids.
Toyota currently lacks the portfolio to meet these stringent demands. Their sole fully electric model, the BZ4X, struggles with consumer interest due to branding and design issues.
This has led to speculation that Toyota might reimagine the Highlander as an EV. Reports suggest that the brand could phase out the BZ nomenclature in favor of more recognizable names, such as an electric Highlander.
The Next Highlander
Rumors point to a significant transformation for the next-generation Highlander. A fully electric version, possibly built in Kentucky, could align with Toyota’s strategy to comply with emissions regulations.
While this shift might satisfy CARB requirements, it also raises questions about consumer reception, given the challenges of three-row EVs, such as charging logistics during road trips.
Toyota’s broad lineup provides some flexibility. With models like the Grand Highlander, Sienna, and Crown Signia catering to family and crossover markets, a dedicated electric Highlander could find its niche without disrupting other product lines.
Affordability and Market Dynamics
Toyota faces additional hurdles with affordability. Rising costs in production and stricter safety standards have led to the discontinuation of smaller, cost-effective models like the Yaris. This trend contrasts with growing consumer demand for affordable options. While the Corolla remains a staple, inventory issues limit its potential to fill this gap.
The Future of Toyota’s Platforms
Toyota is also expected to introduce a revised K platform to underpin its next-generation models, including the RAV4 and potentially the Highlander.
This platform is designed for greater versatility, accommodating hybrids, plug-in hybrids, and fully electric powertrains. If implemented, it could enable Toyota to cater to diverse consumer preferences while meeting regulatory demands.
