Toyota Motor Corporation announced its ambitious plan to offer hybrid versions of all major models in the U.S. by 2030, leveraging its stronghold in the hybrid vehicle market amid ongoing uncertainty surrounding electric vehicles (EVs). At a recent test-drive event at its North American headquarters, Toyota showcased 26 models, half of which were hybrids, and only two were electric.
Kevin Butt, Toyota Motor North America’s regional environmental sustainability director, highlighted the company’s commitment to expanding its hybrid lineup. This year, the updated Camry sedan was released exclusively as a hybrid, and the upcoming Crown Signia SUV will also be sold only as a hybrid.
Toyota’s hybrid sales have surged, with 410,000 units sold in the first half of the year, a 66% increase from 2023. Hybrids now account for 33% of Toyota’s North American sales, up from 27% last year. The company’s dominance in the U.S. hybrid market is reflected in its nearly 60% market share, bolstered by popular models like the Camry and the new Crown Signia.
The hybrid market has gained traction as rising inflation and high interest rates deter buyers from more expensive EVs. Hybrids, which are more affordable and not limited by driving range, have become an attractive alternative. According to Cox Automotive, hybrids comprised 9% of new U.S. automotive sales in January, surpassing the 7% share of EVs.
The U.S. government has also adjusted its vehicle sales targets, now aiming for EVs to constitute at least 35% of new sales by 2032, with hybrids making up at least 13%. This policy shift supports Toyota’s strategy to increase its North American sales of electrified vehicles to 80% by 2030.
Toyota faces competition from other automakers pivoting towards hybrids, including General Motors and Ford. However, Toyota’s established hybrid technology and market presence provide a significant advantage. As the company navigates the evolving automotive landscape, its ability to balance hybrid and EV offerings will be crucial, particularly in light of potential policy changes following the upcoming U.S. presidential election.
