Toyota hikes vehicles prices, boosts Grand Highlander production

Various media reports are stating that Toyota hikes vehicles prices as well as boosting Grand Highlander production while slowing EV production for SUVs.

This news shows the shifting market occurring within the first six months of 2025.

Toyota hikes vehicle prices

In a Yahoo Finance article, Toyota is expected to raise new vehicle prices by an average of $270. Lexus vehicles will see a price increase of $208. These prices will take effect on July 1, 2025.

The move is reportedly not related to the various tariffs imposed by U.S. President Trump per Toyota spokesperson Nobu Sunaga.

Instead, they are part of a routine adjustment when considering factors such as market trends and competition.

Grand Highlander production increases, EV moves

In related news, the Toyota Indiana plant will add additional capacity for the Grand Highlander at the plant while dropped plans to build more electric vehicles.

Previously, Toyota planned to build a new three-row EV crossover in Indiana. Now this will join a second three-row SUV planned to be built in Georgetown, Kentucky alongside a Subaru sibling vehicle.

“To improve manufacturing efficiencies and better serve customers based on market demand, Toyota is strategically transitioning production across its plants in Kentucky and Indiana,” Toyota statement shared with Autonews.com. “As previously announced, Toyota plans to produce two all-new, three-row battery electric SUVs in the U.S. Toyota will now assemble both vehicles at Toyota Kentucky. Toyota Indiana will continue to assemble the Grand Highlander in its west plant and add assembly of the vehicle to its east plant to accommodate increased production volume. We remain committed to providing long-term job stability for our team members.”

Autonews also points out the Grand Highlander has consistently outsold the smaller and cheaper Highlander. In fact, through the first part of this year, the Grand Highlander sales are up 10 percent to 53,842 while the Highlander sales have fallen 51 percent to 24,985.

Our take

Never in my 15 years have I heard of raising prices due to market trends or competition. The price increase is due to the tariffs, Toyota is to chicken to say it out loud.

And I still remember being shocked when the then head of Toyota Marketing Lisa Materazzo told a group of media the Highlander was going to remain the volume seller compared to the Grand Highlander. The Grand Highlander is only a few thousand dollars more, can actually seat three rows of people, has real storage space when the seats are folded down and was a home run off the bat. I’m still shaking my head.