Toyota confirms next-gen Kluger to go plug-in hybrid thanks to China: New family SUV part of bold plan to decentralise product development and properly rival the likes of BYD - report

One of Toyota’s joint-ventures in China has confirmed at a tech conference that its next-generation Highlander SUV - the Kluger to Australians - will be available with a range-extender or plug-in hybrid (PHEV) system.

GAC Toyota, the two-decade-old Chinese joint-venture between GAC Group and Toyota Motor Company, announced in a presentation that a number of plug-in hybrid models are in development for the Chinese market, many of which may not be necessarily relevant to global markets.

But the next-generation Toyota Kluger is a model that will yield high interest here in Australia, so whether the Chinese market development becomes available outside GAC Toyota’s home market is something Australia is likely to have an eye on.

Seen on slides at the 2025 GAC Toyota Technology Day via images published on AutoHome, the next-gen Kluger and Sienna people mover both form the range-extender EV (REEV) and plug-in hybrid part of the brand’s multi-pathway approach in China.

While the ‘multi-pathway’ term will sound familiar to anyone following Toyota’s global move towards the next generation of powertrains - be that EV, hybridisation, or even hydrogen - in China it might be a more localised version of the philosophy.

According to reports, Toyota is decentralising its product planning to better compete in the fast-moving Chinese market, meaning Japan will have less direct involvement in deciding what the GAC Toyota line-up looks like.

Traditional hybrid and full BEV models are both a large part of the plan, with the former set to be moving into its sixth generation of development alongside the proliferation of its fifth generation. Toyota’s EV model line-up on the other hand is set to expand, with solid-state batteries to be mass-produced as soon as possible.

GAC Toyota exists in China alongside FAW Toyota, which also imports and produces a relatively established line-up of Toyota models for the market and has also existed since the early 2000s. Both GAC and FAW’s Toyota joint-ventures sell a version of the Kluger in China.

Toyota is also set to work with Chinese brands like Xiaomi and Huawei to develop technology for future models, while it’s already a couple of years into a joint venture with EV and hybrid car giant BYD (on products like the bZ3 sedan).

As recently as 2024, Toyota North America’s General Manager David Christ told CarBuzz that BEVs would be a big part of the US product plan, with the outlet confirming the Highlander (Kluger) would be available as an EV model. It’s not clear if this is still the case, nor whether it would be available in other export markets like Australia.

Currently, Australian market Klugers with their hybrid 2.5-litre four-cylinder powertrains are produced in Toyota’s Motor Manufacturing Indiana plant in the US, along with the related Lexus TX and the Toyota Sienna people-mover.

CarsGuide has contacted Toyota Australia for comment regarding the next-gen Kluger and potential collaboration with China.