Quick Highlights:
- Toyota will build two new three-row EV SUVs at its Georgetown, Kentucky plant
- U.S. production of the Lexus ES sedan will stop and move completely to Japan
- The SUVs are expected to be electric versions of the Land Cruiser and RAV4
- Toyota is spending $1.3 billion to prepare the Kentucky plant for EV assembly and battery work
Toyota is shaking up its U.S. playbook in a big way. The automaker has confirmed plans to build two all-new three-row electric SUVs at its sprawling Georgetown, Kentucky plant—the company’s largest facility worldwide. To make room, production of the Lexus ES sedan will wind down in America and shift back to Japan.
According to a Reuters report backed by Toyota sources, the new SUVs will wear two of the brand’s most recognizable badges: Land Cruiser and RAV4. While Toyota hasn’t released official specs yet, the recently revealed Land Cruiser Se concept offers a strong hint of what’s to come.
For a company that’s built its U.S. success story around hybrids, this marks a pivotal step. Toyota is now moving beyond its cautious electrification strategy and putting its weight behind battery-electric family SUVs designed for American buyers—a move that follows the momentum created by big three-row entries like the Grand Highlander.
Why Kentucky Matters
The Georgetown facility isn’t just another Toyota plant—it’s the company’s biggest operation anywhere in the world. That scale makes it the obvious staging ground for Toyota’s EV push. The automaker is putting $1.3 billion into the site to retool it for electric SUV assembly and battery pack production, ensuring those vehicles qualify for U.S. federal incentives while sidestepping steep import tariffs.
For now, the Kentucky plant is best known as the home of the Camry, RAV4 Hybrid, and until recently, the Lexus ES. With the sedan shifting back to Japan, Toyota frees up critical floor space for a new wave of EVs designed specifically for American families.
At the same time, Toyota’s Indiana plant is ramping up output of the Grand Highlander, a move that highlights just how strong demand remains for traditional gas-powered three-row SUVs—even as the EV era accelerates.
Land Cruiser EV and RAV4 EV: What to Expect
The Land Cruiser EV and the RAV4 EV will be three-row SUVs, and they will sit above Toyota’s current hybrids in size and status. It is also expected that the Land Cruiser EV will become the electric flagship SUV of the brand—a halo model driven by modern battery technology but still carrying the traditional look of the Land Cruiser. The RAV4 EV, in turn, will serve to bridge the divide between the smaller bZ4X crossover and the larger electric trucks Toyota has planned to introduce, acting as an all-electric workhorse for families.
It is not just product planning but strategy to electrify these two nameplates. The RAV4 has been one of the most popular cars in the world, trusted by millions of families, while the Land Cruiser is a global icon of longevity and off-road capability. Toyota is hoping that experience and brand equity will entice some reluctant customers to enter the EV market by making the decision to electrify two of its most established badges.
Striking a balance between Tradition and Future
Toyota has proceeded more slowly than competitors on the path to electrification and instead has concentrated its efforts on hybrids to reconcile efficiency with realistic usability. The plan has been successful—the hybrid Highlander, Camry, and RAV4 continue to sell well.
Toyota is eventually expanding its EV playbook, however, with seven battery-electric models scheduled in the U.S. through 2027. The Kentucky-built SUVs will center that push and show that despite a fractured market, Toyota is counting on both heritage and size to carry its next generation of vehicles.
Final Word
The Lexus ES is no longer being made in Kentucky, marking the end of a chapter. Toyota is clearly starting a new one with three-row electric SUVs, which will carry two of its strongest badges: Land Cruiser and RAV4. With tariffs, incentives, and strong American SUV demand all shaping the strategy, the Georgetown plant is set to become Toyota’s frontline in the EV era.
Keep an eye on the roads, because as Toyota’s electric SUV lineup comes to life, it will soon hit U.S. streets.
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