Toyota’s strategy of providing several powertrains and growing its Highlander nameplate continues its offensive push within a crowded SUV market segment. The Highlander continues to hold its own as a key Toyota product in the North American market, with a 25+ year history to its credit. With refreshed gas and hybrid options, a larger Grand Highlander addition and electric Highlander coming soon, Toyota is making a play to secure its piece of the SUV market while offering choices to consumers. During the full-year of 2025, Toyota Motor North America reported a total of 2,518,071 vehicle sales between both its Toyota and Lexus nameplates.
Significant improvements to the 2026 Highlander offer for the most part standard all-wheel drive across gas configurations and streamlining of trim levels. Gas starting $45,270 and hybrid starting $47,020 with gas having the XLE, XSE, Limited, and Platinum trim levels and the hybrid having XLE, Limited, and Platinum trimmings. On top of this, Toyota has immense success from the Grand Highlander and awaiting the 2027 Highlander BEV. Combined, Toyota is revolutionizing how three-row SUVs can be engineered for a market that wants more.
1. The 2026 Toyota Highlander Gets a Simplified Lineup
The gasoline-only versions of the 2026 Toyota Highlander appear much simpler on paper, all featuring all-wheel drive as standard equipment. American dealer showrooms expect to take delivery of the model in November 2025. Assembled at the Toyota plant in Princeton, Indiana, gas Highlanders will start at $45,270 and the starting prices of hybrids will be $47,020. The list of trims for gas Highlanders ranges from the XLE, XSE, Limited, and Platinum while only the XLE, Limited and Platinum are offered for the hybrid variant.
Highlander Lineup Highlights:
- Standard gas all-wheel drive
- Four gas trim choices
- Three hybrid trim choices
- Princeton Indiana assembly
- November 2025 dealership arrival
The streamlined format allows buyers an easy selection between the gas and hybrid power trains, though multiple equipment levels remain. While the gas model lends itself more strongly to towing capacity, the hybrid addresses those who prefer to gain better fuel economy. Toyota remains the Highlander available for various types of SUV buyers without overcomplicating things.
2. Gas and Hybrid Powertrains Serve Different Priorities
The Highlander of 2026 can be seen in two distinct power-train path choices. This gas driven version has a turbocharged 4-cylinder which makes a total of 265 horses and can tow up to 5,000 pounds. It is rated at 24 miles per gallon on the highway and the city driving. The hybrid driven models has a combined horsepower of 243 and gets better MPG in town, rated at 35 miles per gallon total but gets a better towing capacity of up to 3,500 pounds.
Powertrain Performance Highlights:
- 265 horsepower gas engine
- 243 horsepower hybrid system
- 5,000-pound gas towing
- 3,500-pound hybrid towing
- 35 MPG hybrid estimate
Those figures show Highlanders’ customers a choice depending on their priorities. While the gas version gets more towing muscle (making it the best bet for customers who pull loads), the hybrid gives up some tow capacity, but provides significantly improved EPA estimated combined MPG ratings. In effect, Toyota keeps two traditional, albeit differently applied power sources in the market, to avoid pigeon-holing any one customer with a single powerplant.
3. Highlander Interior Focuses on Family Practicality
Inside the Highlander offers family utility along with modern tech-focused features. Buyers can select from aSofTexor leather trimmed seating along with tri-zone climate control, wireless charging and Toyota’s Audio Multimedia system featuring either an 8-inch touch screen or a 12.3-inch display depending on specification level. This large SUV seats as many as eight passengers; available second-row captain’s chairs allow a unique seating configuration.
Interior and Space Highlights:
- Seating for up to eight
- SofTex or leather seating
- Three-zone climate control
- Wireless smartphone charging
- Up to 84.3 cubic feet
Practicality is also key with cargo flexibility for families to the Highlander. When the rear seats are folded, a vast 84.3 cubic feet of cargo space opens up-making the SUV both a family mover and a load hauler. The rear seats fold and the third row can expand, adding with available comfort features, it keeps the base Highlander a family friendly SUV within the Toyota brand lineup.
4. Safety and Ownership Benefits Add More Value
Toyota makes the Highlander’s 2.5+ safety-driving suite standard, along with blind spot monitoring, rear cross traffic warning and eight airbags. ToyotaCare is included for scheduled maintenance over two years or 25,000 miles. Hybrid Highlander buyers gain extra coverage of the electrified components with the hybrid components and a ten year 150,000 miles warranty for the battery.
Safety and Ownership Highlights:
- Toyota Safety Sense 2.5+
- Blind-spot monitoring standard
- Rear cross-traffic alert
- Eight standard airbags
- Long hybrid battery coverage
Beyond these and the engine and interior, the appeal of the Highlander increases still more with these technologies, safety features added throughout the range, ToyotaCare to ease some of the normal running costs in the first few years and hybrid purchasers are also granted longer protection for the battery and hybrid components.
5. Grand Highlander Changes the Family SUV Sales Picture
The launch of Grand Highlander for the year 2023 altered the position of Toyota’s Highlander range substantially. It reached the maximum for the 2021 model in the US with a sale of 264,128 with both Grand Highlander still being 3 years old. The combined Highlander sales including both Grand Highlander and standard Highlander were nearly 217,500 units and 161,400 units respectively in 2023 and 2024. Standard Highlander sales from 171,289 units dropped to 89,658 units in the following year.
Highlander Family Sales Shift:
- Grand Highlander launched in 2023
- Standard sales peaked in 2021
- 171,289 standard sales in 2023
- 89,658 standard sales in 2024
- Larger model targets space buyers
Even more remarkably the trend changed more drastically in 2025. Standard Highlander sales dropped to 56,208, down 37.3% over the 89,658 in 2024, while the Grand Highlander grew to 136,801 from 71,721 in 2024 up 90.7%. Toyota isn’t only losing customers, it is clearly steering many buyers to the larger Highlander option and this is not limited to only space considerations.
6. Grand Highlander Leads the Large SUV Segment
Leading by selling 96,917 units, an increase of 8.5 percent on the previous year by August 2026, the Grand Highlander ranked first of the listed large SUV nameplates in the United States. The Ford Expedition sold 53,973 and the Toyota Sequoia 18,972. The Hyundai IONIQ 9 increased its sales to 6,147, an increase of 98.2 percent, bringing their four together to 176,009 units with an increase of 3.6 percent.
2026 Large SUV Sales Highlights:
- 96,917 Grand Highlander sales
- 53,973 Expedition sales
- 18,972 Sequoia sales
- 6,147 IONIQ 9 sales
- 176,009 combined units
Sales for the Grand Highlander in August alone jumped to 9,991, though this was still down 23.5 percent on a year-over-year basis. Following the Expedition which came in second place with 7,765 units and the 2,471 units in sales recorded by the Sequoia. The 589 units in sales for the IONIQ 9 were impressive to say the least, though the Grand Highlander was clearly far ahead in year-to-date comparisons than all the nameplates to come.
7. Toyota Holds a Strong Share of the Large SUV Market
Looking back to Q2 2026 the Grand Highlander owned a piece of 25.7% of each automakers market share of the segment. With the Chevrolet Tahoe owning 17.5%, GMC Yukon 15%, Ford Expedition 14.3% and the Chevrolet Suburban 8.2%. With other models holding 9.4% Jeep Grand Wagoneer, Toyota Sequoia holding 4.7%, 3.4% of the Nissan Armada, Hyundai IONIQ 9 at 1.8% and the VinFast VF9 at 0.1%.
Segment Market Share Highlights:
- Grand Highlander holds 25.7%
- Tahoe captures 17.5%
- Yukon reaches 15.0%
- Expedition holds 14.3%
- Sequoia captures 4.7%
The broader segment also expanded from 139,786 units in Q1 2026 to 159,369 units in Q2, representing a 14.0 percent increase. Grand Highlander volume rose from 34,607 to 40,914 units, an 18.2 percent quarterly gain and a 3.1 percent increase over Q2 2025. Other competitors also posted gains, including the Expedition, Yukon, Armada, Sequoia, Tahoe, Suburban, and Grand Wagoneer.
8. Highlander Builds on Toyota’s Strong Value and Sales Position
Toyota’s overall reputation for holding its value also lends the Highlander some help here. Based on average ownership data from various sources, the Highlander should depreciate 40 percent over a 5-year period, holding $29,060 at the 5-year point of sale. The 2024 has already depreciated down to 80.59 percent of its original new price after 1 year of ownership, good for a “Best” value rating compared to a 2020 model, which held almost 60 percent of its value. An estimated annual maintenance cost is expected to be about $283 for a 2025 model versus $736 for a 2020 model.
Toyota Value Highlights:
- 40 percent five-year depreciation
- $29,060 five-year resale value
- 80.59 percent one-year retention
- “Best” value rating
- Toyota maintains strong loyalty
Toyota’s wider sales performance also supports the Highlander family. In Q2 2025, Toyota brand sales increased 7.1 percent year over year to 666,469 units, representing 14.2 percent of the U.S. market. Full-year 2025 TMNA sales reached 2,518,071 units, up 8 percent, with Toyota Division sales rising 8.1 percent and Lexus Division sales reaching a record 370,260 units.
9. Toyota’s EV Expansion Brings a Highlander BEV
Toyota is geared for its expansion of four additional BEVs that’s slated to launch by the end of 2026. One major portion of the expansion plan will be for 2027 Highlander BEV, and Toyota has planned an important three-row SUV space for this BEV within Toyota’s plan for three EVs in 2026 (bZ, C-HR, bZ Woodland). Toyota has started taking pre-orders for its bZ, C-HR, bZ Woodland (in the order that they will arrive): orders for bZ will open earlier, followed by C-HR, and the NZ Woodland while 2027 Highlander is slated for release later in the year.
Toyota EV Roadmap Highlights:
- Four new electric SUVs
- 2027 Highlander BEV
- Three-row electric configuration
- Expected $50,000–$55,000 start
- More showroom EV choices
Toyota doesn’t just see meaningful volume from its three-row EV, it also doesn’t want it viewed as a niche vehicle. David Christ of Toyota Motor North America stated that the company believes it did miss having enough choices to offer when it comes to EVs, in its showrooms. A reported $50k to $55k starting price for the upcoming Highlander EV would slot this SUV near alternatives such as the Kia EV9 and the Toyota is going even further to push sales with a customer cash incentive of $5,000, and a 0% financing option to boot.
10. The Highlander Family Connects Today’s SUV Market With the Electric Future
Broader electrification of Toyota’s plan has seen substantial volume production take shape already. In 2025, sales volume of electrified Toyota vehicles totaled 1,051,397 units, an increase of 19.0 percent which equates to 49.0% of total volume with gains being made across the entire segment of RAV4 Hybrid, Camry Hybrid, Corolla Hybrid, 4 Runner Hybrid, Land Cruiser Hybrid, Sequoia, and Tacoma while Lexus also set its own electrified sales record hitting 131,851 which is a 35.6% of Lexus’ department volume.
Highlander Family Future Highlights:
- Strong gas SUV foundation
- Efficient hybrid alternative
- Rapid Grand Highlander growth
- Three-row EV arriving
- Expanding Toyota electrification
Toyota’s strong brand loyalty provides a solid foundation for the Highlander’s transition, with the company ranking first among mass-market brands in the J.D. Power 2025 U.S. Automotive Brand Loyalty Study for the fourth consecutive year. The Highlander family combines Toyota’s traditional strengths with its electric ambitions: the standard Highlander offers gas and hybrid choices, the Grand Highlander provides more space, and the upcoming Highlander BEV targets three-row EV buyers. This broader strategy gives Toyota multiple ways to stay competitive through strong value retention, hybrid availability, growing Grand Highlander demand, and the upcoming 2027 Highlander BEV.
