00:01 Speaker A
Toyota isn’t shying away from EVs with its next-generation all-electric 2027 Toyota Highlander. Now Pras Subramanian of Finance is finally joining us. So, Pras, some automakers are afraid of EVs. Toyota, still looking busy.
00:23 Pras Subramanian
Yeah, I think it’s an interesting move here, right? This day and age to introduce a three row EV SUV, and that is the Highlander. See, the original Highlander was a gas-powered car and it came and went as the Grand Highlander, a larger SUV, came out. And now they’re getting this Highlander EV in there, right? So it would be three rows still, uh 320 miles of range, uh pretty interesting there. Uh pretty decent size inside and kind of angular sleek designer. But the big question here is, these bigger EVs can be a bit expensive and it is and customers really want them, right? So, you know, uh David Christ, who’s the uh Toyota North America VP, uh was at an event last night at the debut and here’s what he had to say about why the Highlander makes sense as an EV.
01:10 David Christ
We believe that battery electric vehicles are an important part of the industry, and we want to make multiples available to customers. We went from one to four in 2026, so we’re really excited about that option for customers, not only in pricing, but also in size and capabilities.
01:31 Pras Subramanian
Toyota will now have four EVs on sale this year. The new Highlander, uh the bZ, which is their pre-existing EV, which is kind of almost like uh like a RAV4. You got the CHR, which is kind of a smaller EV. Then you have the larger bZ Woodland, which is like an extended version of the bZ. Therefore, they are trying to have a bit of a product portfolio of EVs. But no, Toyota is big on hybrids too. So, they are trying to hedge their bets.
01:54 Speaker A
Do these, do we have aa price on this one yet? Did they uncover this?
01:58 Pras Subramanian
We don’t have a price yet, but the main competitors are the Kia EV9, which is very well received, uh and its twin, which is the Hyundai Ionic 9. The Kia starts around $55,000-ish starting. So, you would have anticipated that Toyota would have started around there as well. But, you know, Toyota has better name recognition, better value, uh in terms of the brand itself. So maybe they charge a little more, but they can’t go too high, right? Because then you are turning off customers.
02:22 Speaker A
Um, I read your very good report on this. I mentioned how they will join this, the Highlander, in the United States, Kentucky. What are the advantages of that decision?
02:32 Pras Subramanian
I mean, look, the fees. A big one, right? So, building in Kentucky, the battery modules will be built in a North Carolina plant in the United States. So, you will avoid all that. Now, you get materials coming from places and you have to pay the fees on that. But this is a pure American-built EV, a large-scale EV. You don’t really have that many in the US other than the uh the Rivian R1S, I believe. Korean automakers are making them in Korea, right? So, uh, well, actually, they’re going to start making them in Georgia, too. Therefore, it is all part of the mix of onshoring this production and EVs are part of that.
02:59 Speaker A
Everything is fine. Thank you, Pras. He appreciates it.