Toyota is making a major shift in its car lineup by focusing on hybrid-only models. Although Toyota has been slow to embrace electric vehicles (EVs), it is now moving to replace most of its Toyota and Lexus models with hybrids.
Hybrids Over EVs
Toyota’s decision to prioritize hybrids comes from its belief that EVs might only capture 30% of the global car market. Instead, Toyota is sticking to a “multi-pathway” approach that includes hybrids, hydrogen fuel-cell vehicles, green fuels, and other future technologies.
Future Plans
Toyota is reviewing each car model to decide if it should be hybrid-only. This review will occur with each model redesign. For instance, the popular RAV4 SUV might drop its gasoline-only version in North America, though this hasn’t been confirmed yet. The Camry sedan and the Land Cruiser and Sienna models have already transitioned to hybrid-only.
Advantages of Hybrids
Toyota’s hybrid vehicles don’t need charging and seamlessly switch between gasoline and electric power, or use both together. The plug-in hybrids can be charged and typically run about 40 miles on battery power alone before needing gasoline.
Meeting Emission Standards
Toyota’s hybrid strategy helps it meet new U.S. emission rules that start in 2027. These rules could help Toyota avoid expensive fines and buy more time to develop EVs. With tougher pollution limits coming, Toyota’s strong hybrid sales could be a significant advantage.
EV Goals
Toyota plans to have around 30% of its global fleet as EVs by 2030, focusing on a few top-selling models. The company has also announced a $35 billion investment in new batteries and EV platforms.
Hybrid Development
Toyota is working on a new platform for hybrids, starting with smaller engines that could be used in new hybrid models. The first hybrid from this new platform might be a plug-in Corolla, expected to launch in China in 2026 and in the U.S. in 2027.
Hybrid Success
Toyota’s long-term investments have improved the performance and efficiency of its hybrids, making them more appealing to customers. Hybrids now make up a significant portion of Toyota’s sales and continue to grow rapidly.
Looking Ahead
With a surge in hybrid sales and a slowdown in EV demand, Toyota’s strategy to focus on hybrids is seen as a smart move. The company’s hybrid sales are expected to keep rising, with projections suggesting they could make up more than half of Toyota’s total sales next year.
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