Toyota Bets Big on American-Built, Three-Row Electric SUVs

The automaker just announced a new $1.4 billion investment in its Princeton, Indiana facility

Toyota factory in Indiana
Toyota's factory in Princeton, Indiana.

Toyota made a big announcement this week, letting the world know that it was committing over a billion dollars to build an electric, three-row SUV in Indiana. If that news gives you a sense of deja vu, it’s not just you — this shouldn’t be confused with Toyota’s February announcement about a different three-row electric SUV slated to be built in Kentucky.

All told, the two steps mean that Toyota is committing $2.7 billion to the two American-made electric SUVs. The automaker’s announcement of its new $1.4 billion investment in the Princeton, Indiana facility confirms that the two models are distinct from one another — but it sure seems like Toyota has a particular segment of the market in mind.

Toyota also clarified that the Indiana investment would encompass both the electric SUV assembly and an assembly line for battery packs.

Despite plenty of evidence that there’s room to grow on the sedan side of the EV market, it isn’t hard to see why Toyota would be looking into spacious SUVs for its big EV push. Odds are good that drivers seeking a three-row SUV also live somewhere that could accommodate a charger, which is ideal, seeing as how charging infrastructure has frustrated some EV owners.

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This investment in electric SUVs isn’t Toyota’s only big April announcement about upcoming models. Earlier this month, the automaker said that the 2025 Camry would be a hybrid, full stop. It seems telling that Toyota’s ubiquitous sedan is taking a very different path towards electrification — but it also feels like an acknowledgement of where the market and charging infrastructure are right now.

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