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Toyota Unveils Two New Three-Row Electric SUVs: Lexus TZ and Toyota Highlander EV

Toyota Motor Corporation has unveiled two new three-row electric SUVs: the Lexus TZ and the Toyota Highlander EV. Both models are scheduled to launch in the United States market in late 2026.

The Lexus TZ is the brand's first three-row electric SUV, while the Toyota Highlander will transition to an electric-only powertrain in North America.

Lexus TZ: First Three-Row Electric SUV

Overview and Positioning

The Lexus TZ is an electric three-row SUV designed to compete with the Volvo EX90 and Cadillac Vistiq. It serves as the electric alternative to the North American-exclusive three-row Lexus TX.

The vehicle is built on the TNGA platform and shares battery technology with the Toyota Highlander EV and Subaru Getaway.

Production will take place in Japan, and Lexus Australia has confirmed it is assessing the TZ for potential introduction, which could include right-hand drive production.

Specifications

• Range: Up to 300 miles (482 km) with a dual-motor all-wheel drive powertrain.
• Battery Options: Two lithium-ion battery options: 76.96 kWh or 95.82 kWh.
• Powertrain: Dual-motor all-wheel drive only; estimated power up to 313 kW.
• Features:
  • 'DIRECT4' all-wheel drive
  • Four-wheel steering (rear wheels up to 4 degrees)
  • Five levels of regenerative braking
  • Drive modes including 'Range' and 'Rear Comfort'
• Interior:
  • Ventilated front and second-row captain's chairs with power-adjustable ottomans (first for Lexus SUV)
  • Heated seats for all rows
  • Removable center console
  • 14-inch infotainment display
  • 21-speaker Mark Levinson sound system
  • Sustainable materials (forged bamboo, bio-based UltraSuede, recycled aluminum)
• Exterior:
  • Design resembles Lexus GX
  • Full-width LED light bar
  • 20-inch or 22-inch alloy wheels
• Dimensions:
  • Length: 200.8 inches (5100 mm)
  • Width: 78.3 inches (1989 mm)
  • Height: 67.1 inches (1704 mm)
  • Wheelbase: 120.1 inches (3050 mm)
• Cargo Capacity: 13.8 cubic feet (390 L) with all rows upright
• Towing Capacity: 3500 pounds (1587 kg)
• Safety Features:
  • Emergency steer assist
  • Junction assist
  • Adaptive cruise control
  • Traffic sign recognition
  • Lane-change assist
  • Rear pedestrian detection
  • Head-up display

Model Lineup and Pricing

Badging indicates 'TZ450e' and likely 'TZ550e' (trademarked). Full US specifications and pricing will be revealed later in 2026.

Potential Australian Market

If introduced in Australia, the TZ would be the first three-row electric SUV from Toyota, Subaru, or Lexus brands sold locally. It would compete with the Volvo EX90 ($124,990 AUD), Cadillac Vistiq ($116,000 AUD), and Kia EV9 (up to $129,250 AUD).

Toyota Highlander EV: Electric-Only Transition in North America

Overview and Market Context

Toyota has introduced the 2027 Toyota Highlander electric SUV for North America. The Highlander nameplate will become electric-only in the US market.

This means the US-made Highlander will no longer be offered with a turbocharged 2.4-liter petrol engine or a 2.5-liter four-cylinder hybrid powertrain in the US. The vehicle is positioned to compete with models like the Kia EV9 and Hyundai Ioniq 9.

Australian Market Plans

Toyota Australia has stated there are no current plans to introduce the Kluger EV (Highlander in Australia) locally. The Kluger Hybrid will remain part of Toyota's Australian lineup, with exports tailored to local market requirements, despite the US plant manufacturing Highlander/Kluger models for most markets outside China.

Specifications

• Design: Boxier aesthetic; 19-inch to 22-inch wheels; slimline LED daytime running lights; single or two-tone paint options.
• Dimensions:
  • Length: 5049mm (+99mm compared to outgoing model)
  • Width: +59mm
  • Height: -20mm
  • Wheelbase: 3051mm (+201mm)
• Seating: Six- or seven-seat configurations; the six-seat option includes captain's chairs in the second row.
• Platform and Powertrain:
  • Utilizes updated version of existing Kluger's TNGA-K platform
  • Shares powertrains with Toyota bZ4X
  • Front-wheel drive: 165kW/269Nm
  • All-wheel drive: 252kW/438Nm
• Battery and Range:
  • Standard 77kWh lithium-ion battery: Estimated 462km (FWD) and 434km (AWD)
  • Optional 95.8kWh battery (AWD only): Estimated 515km
  • Range figures are manufacturer estimates, likely based on US EPA test cycle
• Charging: 11kW on-board charger; NACS port; 10-80% DC fast charge in approximately 30 minutes
• Features: Vehicle-to-load (V2L) capability

Interior and Technology

• Storage:
  • 1291L of luggage space with third row stowed (reduction from 1370L in previous models)
  • 18 cupholders
  • Dedicated storage for phones and tablets
• Materials: Standard Toyota 'SofTex' synthetic leather trim
• Controls: Physical buttons for air-conditioning and audio functions
• Displays:
  • 12.3-inch configurable digital instrument cluster
  • Optional head-up display
  • 14.0-inch center touchscreen with built-in dashcam (20-second clips)
• Safety: Rear cross-traffic alert; Proactive Driving Assist (PDA) for steering and braking assistance

Market Context and Strategy

Toyota North America previously confirmed plans to produce two three-row electric SUVs at its Georgetown, Kentucky manufacturing plant.

Toyota has faced criticism for its slower expansion of its EV lineup, prioritizing hybrid powertrains instead.

This strategy has aligned with sustained popularity of hybrids in markets like the US and Australia. Several automakers, including Nissan and Ford, have revised earlier EV targets to focus more on hybrid and plug-in hybrid vehicles. Ford has reported financial losses from its EV division, leading to delays or cancellations of some EV programs.

Separately, Toyota has confirmed the first LandCruiser Hybrid for Australia will arrive in early 2026, utilizing a hybrid powertrain also found in the Toyota Tundra pickup.