09:30 AM EDT, 09/10/2025 (MT Newswires) -- (Updates with Toyota's ( TM ) response in third, fourth and fifth paragraph.)

Toyota Motor ( TM ) will begin manufacturing two battery-powered sport utility vehicles at its Kentucky plant while ending the production of a Lexus model at the facility, Reuters reported Wednesday, citing a person familiar with the matter.

The EVs will be based on the RAV4 and Land Cruiser models, the source said.

Toyota ( TM ) said in a statement e-mailed to MT Newswires that it is strategically transitioning production across plants in Kentucky and Indiana "to improve manufacturing efficiencies and meet market demand."

The company said the previously announced two all-new, three-row battery electric SUVs in the US will now be assembled in Toyota Kentucky.

Toyota Indiana will continue to assemble the Grand Highlander at its west plant while adding assembly of the model to its east plant to support higher volumes, the company said.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)