Why Japan Is Suddenly Interested in a Toyota SUV Built in the U.S.

Forbidden Fruit

I find it ironic that the Japanese market is now lusting after products from Toyota's North American lineup. How the tables have turned, am I right?

The first-generation Toyota Highlander was also called the Toyota Kluger. It was a five-door SUV that shared bones with the Lexus RX and debuted in 2001 as a five-seater and then reconfigured as a seven-seater by 2004. It was offered in Japan, Australia, and North America, where it was sold with either a gasoline or a hybrid powertrain by 2005.

Leaving Japan

After the first generation, Toyota Japan dropped the Kluger model in its local lineup altogether. The second generation of this family of models was never sold in Japan, but it was still being offered in Australia as the Kluger. This was also the generation that had three assembly plants: one still in Japan, another in China, and finally, the Toyota factory in Princeton, Indiana, in the U.S.

By the third generation, there was no trace of the Highlander in Japan. The model was now being mass-produced in China and the U.S. The same goes for the fourth- and incoming fifth-generation Highlanders, until recently.

Reverse Import

The current fourth generation of the Toyota Highlander is being assembled in the United States, at Princeton, Indiana. The battery-powered fifth-generation model will be produced in Toyota's Georgetown, Kentucky factory. Two generations later, it returns to Japan, no longer a locally produced model, but as a "reverse import." A Japanese-branded car, made in the United States and then imported to Japan. Ironic, isn't it?

Why is it back? Well, because the Japanese Ministry of Land, Infrastructure, Transport, and Tourism has established a certification system for U.S.-made vehicles, the Highlander can be imported into Japan again without additional testing. This system is called the "Joint Statement on Framework Agreement between Japan and the United States," which was issued on July 22, 2025.

To promote awareness of the system, Ryosei Akazawa, the Minister of Economy, Trade and Industry in Japan, introduced the Toyota Highlander as an official vehicle in February 2026, stating that it was "spacious" and "comfortable" to ride in.

Not For Sale... Yet

According to Japanese automotive media, Kuruma News, the model has been getting inquiries left and right, enough for journalists to take notice. However, there is a catch: the model is not yet for sale.

Following Ryosei Akazawa's promotion, which was broadcast throughout Japanese media, it prompted eager car buyers to inquire about the Highlander at Toyota dealerships. As a model that hasn't been in Japan for about two decades at this point, it's almost entirely unfamiliar to the local Japanese market. The eagerness stems from the fact that it looks new, but more savvy Toyota fans will know that the Highlander's availability in Japan marks the return of the Kluger nameplate in the country. It has a totally new design and a Toyota badge, so it must be on sale in Japan, right?

Unfortunately, all of those inquiries were met with an unfortunate "no" from dealerships. It's currently serving as a poster car for the Ministry of Economy, Trade, and Industry. Toyota is not currently selling the model to the public, but it has announced that it is considering American-produced models such as the Camry, Tundra, and Highlander for entry into the Japanese lineup as early as 2026. It may be only a matter of time before these inquiries turn into sales.

The estimated price, variants, and availability of the Highlander are unknown for now, and Toyota dealers are explaining the situation to each and every customer one by one. For now, the Highlander is "forbidden fruit" for Japanese clientele; meanwhile, Americans can purchase the Highlander starting at MSRP $45,570 for the base trim.

The new fifth-generation model, which is fully electric and capable of 320 miles of range (500 kilometers), is set to launch late this year. Japanese media outlets have also picked up on the electric Highlander and are eagerly anticipating its arrival.

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