Toyota Commits $24B to US Manufacturing, Plans Seven EV Models by 2027
Toyota will offer four battery electric vehicles in the US by year-end and expand to seven EV models by 2027. It projects $9B in fiscal-2026 tariff costs and has pledged $24B in US manufacturing investments, including a $14B North Carolina battery plant and $1B for Kentucky and Indiana capacity.
1. EV Lineup Expansion
Toyota plans to grow its battery electric vehicle lineup from one model today to four by year-end, featuring the compact C-HR, rugged bZ Woodland and a US-built Highlander SUV, and aims to introduce a seventh EV model by 2027 with Kentucky production slated later this year.
2. Tariff Cost Pressures
The company forecasts $9 billion in tariffs for the fiscal year ending March 2026, the highest among major automakers, with a 25% levy on imports like the Mexico-built Tacoma offset only partially by rebates tied to US-sourced parts.
3. US Manufacturing Investments
Toyota has committed roughly $24 billion to US manufacturing, anchored by a $13.9 billion battery plant in North Carolina, an additional $10 billion in domestic investment and $1 billion to expand capacity at its Kentucky and Indiana facilities, supporting its strategy of selling where it builds.
4. Strategic Positioning
Leveraging its hybrid leadership, Toyota is keeping six models under $35,000 to preserve affordability, betting on higher fuel costs to spur EV demand recovery while competitors scale back, and reinforcing resilience against rising input costs.