Toyota reported a sharp increase in U.S. sales of its bZ electric crossover in the first quarter of 2026, signaling growing traction for its battery-electric vehicle strategy in a market where it had previously lagged rivals.
Toyota said sales of the bZ crossover rose 79% year-on-year in the January–March period, with more than 10,000 units sold in the United States during the quarter.
The performance follows a comprehensive update to the model for the 2026 model year, including pricing adjustments, improved cold-weather charging performance and an extended driving range of up to 314 miles (505 km). The company also revised the model’s naming and positioning as part of a broader push to increase its competitiveness in the EV segment.
Toyota has historically trailed competitors such as Ford Motor, General Motors and Tesla in battery-electric vehicle sales. In response, the company has adopted a more aggressive approach, including pricing strategies and dealer incentives aimed at expanding its share of the EV market.
Beyond the bZ crossover, Toyota is broadening its electric vehicle portfolio in North America. The company has introduced new models including the bZ Woodland and the C-HR, and plans to launch a battery-electric version of the Highlander sport utility vehicle in late 2026.
The Highlander EV will be produced at Toyota’s Georgetown, Kentucky facility, marking the company’s first battery-electric model assembled in the United States. Toyota said more than 3.6 million Highlander units have been sold in the U.S. since the model’s introduction in 2001.
Toyota is also increasing investment in its U.S. operations to support its EV expansion. Last month, the company said it would invest $1 billion in its manufacturing footprint, including around $800 million for the Georgetown plant to support production of a second battery-electric model and upgrades to existing vehicles such as the Camry and RAV4.
In February, Toyota unveiled the 2026 bZ Woodland SUV, featuring a dual-motor all-wheel-drive system with a combined output of 276 kilowatts (375 horsepower).
