Toyota Ranks Top 5 in US EV Sales for Q2 2026 Despite Highlander BEV Delay

Toyota has emerged as one of the top five electric vehicle sellers in the U.S. after a record 225% surge in EV sales during the second quarter of 2026, according to industry data released on July 14. The Japanese automaker sold 21,855 electric vehicles in the first half of the year, capturing a 4.7% market share and ranking fourth behind Tesla, Hyundai, and Chevrolet.

The company’s rapid growth in the EV sector comes as it delays production of its first all-electric three-row SUV, the 2027 Highlander BEV, by at least two months. Toyota attributed the postponement to "last-minute adjustments" but confirmed that the 2026 gas and hybrid models will continue production through December 2026. The delay affects only the battery-electric variant, with no impact on other powertrains.

Toyota’s EV Sales Outpace Industry Decline

While the broader U.S. EV market saw a 36% year-over-year decline in Q2 2026, with 247,226 units sold, Toyota’s performance stood out. The company’s EV sales more than tripled compared to the same period last year, driven by strong demand for its bZ, C-HR, and bZ Woodland electric SUVs. The Toyota bZ ranked as the fourth-best-selling EV in the U.S. through June, trailing only the Tesla Model Y, Tesla Model 3, and Hyundai IONIQ 5.

Cox Automotive, which tracks automotive sales trends, confirmed Toyota’s rise into the top five EV sellers in the U.S. for Q2 2026. The company’s success contrasts with Tesla’s 13% sales decline in the same quarter, though Tesla still dominated the market with 124,800 deliveries, accounting for over half of all U.S. EV sales through June.

Hyundai also performed strongly, with its IONIQ 5 sales rising 8.6% to 20,730 units in the first half of 2026, making it the best-selling non-Tesla EV. Chevrolet, however, saw a 41% drop in Equinox EV sales to 16,249 units, while its Bolt model sold 4,224 units in the same period.

Highlander BEV Delay Raises Questions

Toyota’s decision to delay the Highlander BEV has drawn attention, particularly as the model was expected to compete in the growing three-row electric SUV segment. The company has not disclosed specific details about the "last-minute adjustments," but industry observers note that the delay could extend the sales window for its gas and hybrid Highlander models.

The Highlander BEV shares its platform with upcoming models from Toyota’s luxury brand, Lexus, and its partner, Subaru. While neither Lexus nor Subaru has confirmed any impact on their production timelines, the shared architecture suggests potential ripple effects. The Lexus TZ and Subaru Getaway, both expected to launch in the coming years, could face delays if Toyota’s adjustments require further modifications.

Pricing and Competitive Landscape

The Highlander BEV was projected to enter the market at around $50,000, positioning it as a more affordable option compared to competitors like the Tesla Model Y L ($61,990), Hyundai IONIQ 9, and Kia EV9. The delay could provide an opening for Rivian, which plans to begin deliveries of its R2 SUV in 2027 at a starting price of $44,990.

Toyota’s multi-powertrain strategy—offering gas, hybrid, plug-in hybrid, and fully electric vehicles—has contributed to its recent sales growth. However, the company now faces increasing competition from automakers focused exclusively on EVs. While Toyota’s EV sales have grown significantly, its cautious approach to electrification contrasts with the aggressive expansion of brands like Tesla and Rivian.

As the U.S. EV market evolves, Toyota’s ability to balance its traditional hybrid leadership with growing demand for battery-electric vehicles will be critical. The Highlander BEV delay, while minor, highlights the challenges automakers face in transitioning to an all-electric future.

Toyota Ranks Among Top 5 US EV Sellers in Q2 2026 Despite Highlander BEV Delay

Toyota’s EV Sales Outpace Industry Decline

Highlander BEV Delay Raises Questions

Pricing and Competitive Landscape

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