Toyota to Build Two New Electric SUVs in Kentucky, Shift Lexus ES Production to Japan

Toyota Motor is preparing to expand its electric vehicle (EV) lineup in the United States by producing two new battery-powered sport utility vehicles at its Kentucky plant, according to a source familiar with the matter. The new EV models will be based on the popular Toyota RAV4 and the rugged Land Cruiser, signaling the Japanese automaker’s growing commitment to electrification in one of its largest markets.

The shift in production will also bring changes for Toyota’s luxury division. The next-generation Lexus ES sedan, expected next year, will no longer be built in Kentucky. Instead, production will move to Japan, with vehicles exported to the U.S. The decision, the source noted, is not tied to U.S. import tariffs. Currently, Toyota manufactures the Lexus ES at its Kentucky facility and produces the Lexus TX SUV at its Indiana plant.

Toyota has not publicly confirmed these plans, maintaining its policy of declining to comment on future product strategies. However, the move aligns with the company’s ongoing evaluation of its global production structure as it adapts to rising EV demand and regulatory changes.

Earlier this week, Japan’s Nikkei newspaper reported that Toyota might consolidate Lexus production in the U.S. due to high tariffs imposed by the Trump administration. In response, Toyota stated that such information had not been officially announced, emphasizing that the company continuously reviews its operations to improve efficiency and deliver better vehicles.

This development highlights Toyota’s strategy to strengthen its EV presence in the American market while adjusting its luxury lineup for efficiency and global balance. By investing in electric SUVs like the RAV4 and Land Cruiser, Toyota is positioning itself to remain competitive as consumer demand for sustainable mobility continues to accelerate.