Toyota will cease Lexus ES luxury-sedan production at its Kentucky plant, consolidating all U.S. Lexus manufacturing at its Indiana facility, according to a report by Nikkei. The move comes amid rising tariff pressures and an increased focus on hybrid-vehicle output domestically.
The Indiana plant will now handle Lexus ES and TX models, increasing its significance for hybrid vehicle production.
This consolidation coincides with Toyota’s broader global electrification strategy — notably exemplified by the unveiling of the all-new 2026 ES, available in HEV and BEV variants and scheduled for sale next year. The shift suggests Toyota is prioritizing hybrid production flexibility and may phase out certain regional operations that lack BEV capability.
Most Lexus production, particularly front-drive models like the ES, has historically been located in Japan, primarily at Toyota Motor Kyushu’s Miyata plant and the Tahara facility, known for high automation. This realignment reflects a return to that structure, capitalizing on established Japanese expertise for luxury hybrids, while keeping a U.S. base for volume production.
