Japanese automaker Toyota (TYO:7203), on Wednesday, unveiled the first hybrid version of its Land Cruiser. The company aims to make a significant impact by bringing this high-margin and iconic sports utility vehicle to North America and other key markets.
Toyota said it will produce the new model of the brand that traces its roots to 1951, and a newly launched compact variant at two production facilities in Japan. From there, these vehicles will be shipped to international markets.
The new model is intended to be primarily sold as a hybrid in the United States. This strategic move will provide an opportunity for current owners of less fuel-efficient Land Cruisers to transition to cleaner, more eco-friendly cars.
According to analysts at Tokai Tokyo Research Institute, Land Cruiser models, along with certain other models like the Alphard van, are notably large vehicles that contribute significantly to Toyota's profitability.
"Land Cruisers and Alphards have a high profitability even under the Toyota brand," the analysts said, adding that will go up further if models are sold under the Lexus brand.
The new Land Cruiser will become available in Japan in the first half of 2024 and come to the United States that spring. According to Toyota, the suggested retail pricing in the United States will start in the mid-$50,000 range.
Shares of TM are up 1.82% in pre-market trading on Wednesday.