The automotive landscape is evolving rapidly, and Toyota is keeping pace with innovative solutions tailored to specific markets. The next-generation Toyota Kluger—known as the Highlander in some regions—is set to introduce a range-extender electric vehicle (EREV) option in China, a significant move for the popular seven-seat SUV. Announced at GAC Toyota’s technology day event in mid-2025, this development reflects Toyota’s strategy to cater to China’s growing demand for electrified vehicles while addressing range anxiety. In this 1500-word article, we’ll explore the Kluger’s new EREV option, its technology, market implications, and whether it could reshape the SUV segment in China and beyond.
What Is a Range-Extender Electric Vehicle (EREV)?
Before diving into the Kluger’s new powertrain, let’s clarify what an EREV is. A range-extender electric vehicle, also known as a series hybrid, is a type of plug-in hybrid electric vehicle (PHEV) that primarily relies on electric motors for propulsion. Unlike traditional hybrids, where the gasoline engine can directly drive the wheels, an EREV’s internal combustion engine (ICE) acts solely as a generator to charge the battery when it depletes. This setup offers the benefits of electric driving—smooth, quiet, and efficient—while extending range through gasoline, reducing reliance on charging infrastructure.
In China, EREVs are classified under New Energy Vehicles (NEVs), alongside battery electric vehicles (BEVs) and PHEVs, qualifying for government subsidies. The technology has surged in popularity, with a 492% sales increase from 2021 to 2023, driven by brands like Li Auto and BYD. The Kluger’s EREV option aligns with this trend, promising to blend Toyota’s hybrid expertise with China’s demand for long-range electrified vehicles.
The 2025 Toyota Kluger: What’s New?
The current fourth-generation Kluger, launched in 2019, is a cornerstone of Toyota’s global SUV lineup, offering hybrid and plug-in hybrid options in China through GAC Toyota and a near-identical Crown Kluger via FAW Toyota. The fifth-generation Kluger, expected to debut in 2026, will introduce the EREV powertrain as a key feature for the Chinese market. While Toyota hasn’t released detailed specifications, the EREV system is likely to pair a small, efficient gasoline engine with a larger battery and electric motors, delivering an electric-only range of 50–100 miles (80–160 km) and a total range exceeding 600 miles with a full tank.
Other updates for the 2025 Kluger include:
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Enhanced Design: Expect refreshed styling with sharper lines, updated headlights, and a bold grille, aligning with Toyota’s modern SUV aesthetic. The Crown Kluger variant may feature premium touches like chrome accents and a distinctive badge.
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Advanced Tech: A larger infotainment screen (likely 12.3 inches or bigger), wireless Apple CarPlay/Android Auto, and Toyota’s latest Safety Sense suite with adaptive cruise control, lane-keeping assist, and pedestrian detection will be standard.
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Interior Upgrades: The seven-seat layout will remain, with improved materials and tech like a digital gauge cluster. The focus will be on family-friendly features, such as wide-opening doors and a high-lifting tailgate.
These changes aim to keep the Kluger competitive against rivals like the Kia Sorento, Hyundai Palisade, and emerging Chinese EREVs like the Deepal S09.
Why China? The Rise of EREVs
China’s automotive market is the world’s largest, and its NEV segment is booming, accounting for 65% of global electric vehicle sales in the first half of 2025. EREVs are a hot trend, capturing 9% of NEV sales in 2023, thanks to their ability to address range anxiety—a key concern in a country with vast distances and uneven charging infrastructure. Unlike BEVs, which rely solely on batteries, EREVs offer the flexibility of refueling at gas stations, making them ideal for long trips.
Toyota’s decision to introduce an EREV Kluger reflects its cautious approach to full electrification. While Toyota pioneered hybrids with the Prius, it has lagged in BEVs, relying on partnerships with GAC and FAW for China-specific EVs like the bZ4X. The EREV system, potentially developed with local suppliers or BYD’s battery technology, allows Toyota to leverage its hybrid expertise while meeting China’s demand for electrified vehicles.
How Does the Kluger EREV Work?
Though exact details are pending, the Kluger’s EREV system will likely follow the standard series hybrid blueprint:
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Electric Motors: The vehicle will be powered by one or two electric motors (possibly front and rear for AWD), delivering instant torque and a smooth driving experience.
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Battery Pack: A lithium-ion battery, larger than in traditional PHEVs, will provide 50–100 miles of electric-only range, sufficient for daily commutes.
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Range-Extender Engine: A small gasoline engine (e.g., 1.5-liter turbo or naturally aspirated) will act as a generator, charging the battery when depleted. It won’t drive the wheels, ensuring electric-only propulsion.
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Efficiency: The engine will operate at its optimal RPM, improving fuel efficiency compared to traditional hybrids. Expect a combined range of 600–700 miles, based on benchmarks like the Neta L EREV (680 miles).
This setup offers the feel of a BEV with the practicality of a hybrid, appealing to Chinese buyers who value long-range capability without frequent charging.
Performance and Driving Experience
The current Kluger’s hybrid models deliver 184 kW (245 hp) with a 2.5-liter hybrid system, achieving 0–60 mph in about 7.5 seconds and fuel economy of 5.6–7.0 L/100 km (42–33 mpg). The EREV version should maintain similar performance, with electric motors providing instant acceleration and a quiet cabin. The range-extender engine, designed for efficiency, won’t match the power of the 2.4-liter turbo petrol (discontinued in Australia) but will prioritize fuel savings.
Off-road capability, a Kluger strength, will likely remain with AWD configurations. The EREV’s electric motors could enhance torque distribution, improving traction on slippery surfaces. However, the added weight of the battery and generator may slightly affect handling compared to the standard hybrid.
Market Implications: A Competitive Edge?
The Kluger EREV enters a crowded field. Chinese brands like Li Auto, Deepal, and Chery’s Exeed are leading the EREV charge, with models like the Deepal S09 (5205 mm long, 300,000 yuan/$64,191) and Exlantix ET offering premium interiors and ranges up to 1500 km. These vehicles target family buyers, much like the Kluger, but often at lower price points.
Toyota’s advantage lies in its brand reliability and global reputation. J.D. Power rates the Kluger highly (88/100 for reliability), and its hybrid systems are proven durable. The EREV Kluger could appeal to buyers seeking a trusted name with electrified benefits, especially if priced competitively (estimated 275,000–350,000 yuan/$42,000–$53,000). However, Toyota faces pressure from BYD, which sold 380,000 NEVs in April 2025, and other locals offering advanced driver-assistance systems (ADAS) like BYD’s “Gods Eye.”
Globally, the EREV Kluger’s future is uncertain. Toyota North America declined to comment on U.S. availability, but growing hybrid demand suggests it could appear in markets like the U.S. or Australia, where the Kluger is hybrid-only and starts at $60,920 AUD. A 2026 debut as a three-row EV in North America is rumored, potentially with an EREV option to bridge the gap to full electrification.
Pros and Cons of the Kluger EREV
Pros:
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Extended Range: 600+ miles total range eliminates range anxiety, ideal for long trips.
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Electric Efficiency: 50–100 miles of electric-only driving reduces fuel costs for daily use.
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Family-Friendly: Seven seats, spacious cargo (241–1150 liters), and wide-opening doors cater to families.
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Reliability: Toyota’s hybrid expertise ensures durability, backed by a 5-year warranty (extendable to 10 years for hybrids).
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Subsidies: Qualifies for China’s NEV incentives, potentially lowering costs.
Cons:
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Complexity: The EREV system adds maintenance (oil changes, engine upkeep) compared to BEVs.
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Competition: Chinese EREVs like Deepal S09 offer larger batteries and lower prices.
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Weight: Extra components may reduce agility and efficiency in electric mode.
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Uncertain Global Reach: Limited confirmation of availability outside China.
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Tech Gap: Toyota’s ADAS may trail Chinese rivals’ advanced systems.
Is It a Game-Changer?
The Kluger EREV is a strategic move for Toyota in China, blending its hybrid legacy with the country’s EREV boom. It addresses range anxiety, leverages NEV subsidies, and appeals to family buyers with its spacious, practical design. However, it faces fierce competition from Chinese brands offering cutting-edge tech and lower prices. Toyota’s reliability and brand trust could give it an edge, but success depends on competitive pricing and robust ADAS features.
Globally, the EREV Kluger could bridge the gap for markets hesitant about full EVs, especially in regions like Australia or North America, where charging networks are still developing. If Toyota brings this powertrain to the West, it could redefine the Kluger as a versatile, electrified family SUV. For now, it’s a bold step for China’s unique market, but its global impact remains to be seen.