Toyota, as one of the traditional car manufacturers, has not been very proactive in developing electric vehicles, but Toyota may be the first car manufacturer to gradually abandon pure gasoline cars.
According to Reuters, Toyota executives revealed that after the introduction of the pioneering hybrid electric car Prius nearly thirty years ago, Toyota is working on converting most (ultimately possibly all) Toyota and Lexus models into pure hybrid models.
Toyota, currently the world’s largest car manufacturer, has been committed to hybrid cars rather than electric vehicles. This move by Toyota does not align with the mainstream view that future cars will shift towards electric vehicles.
Toyota Chairman Akio Toyoda stated in January of this year that he believes electric vehicles will account for up to 30% of the global market share. In contrast, Toyota leans towards a “multi-path” strategy, including electric vehicles, hybrid cars, hydrogen fuel cell vehicles, green fuel models, and some other yet-to-emerge technologies.
“We plan to evaluate each model one by one to see if full hybrid makes sense,” David Christ, Toyota’s North America sales and marketing chief, told Reuters.
Toyota is set to make significant changes to the RAV4 in the 2026 model year. The RAV4 is the best-selling SUV in the United States, with hybrid models accounting for roughly half of sales.
Two people familiar with Toyota’s product planning discussions told Reuters that Toyota is likely to phase out pure gasoline models in the North American market, but no final decision has been made yet. The news of Toyota potentially aiming to convert all or nearly all of its North American models to hybrids had not been reported previously.
The 2025 Camry, the best-selling sedan in the United States, has already transitioned to hybrid models, while the Land Cruiser and Sienna minivan now only offer hybrid options.
According to sources who requested anonymity, many hybrid models from Toyota may feature plug-in hybrids with larger batteries.
Edmunds, an automotive consulting firm, reports that electric vehicle sales in the United States have slowed down, with the average time a car spends on a dealership lot increasing from 25 days in early 2023 to 72 days in 2024. This indicator, called “days to turn,” is a measure of product popularity.
However, hybrid cars have outperformed other vehicle types in popularity – their days to turn have increased quickly; from 16 days in 2023 to 25 days in 2024.
According to Morgan Stanley data, in February 2024, hybrid car sales were five times that of electric vehicle sales.
Toyota’s hybrid cars do not require charging and seamlessly switch between gasoline and electric power based on driving conditions, or use both power sources simultaneously. Their plug-in hybrid cars can charge and typically drive around 40 miles on battery power like electric cars before needing the gasoline engine.
Reuters reports that apart from two electric cars and one fuel cell vehicle currently available in North America, there are 31 other Toyota and Lexus models. Eight of them are hybrid models, while eight are only gasoline versions.
Christ mentioned that Toyota has not set a deadline for producing exclusively hybrid models, as certain models (such as pickups and economy cars) may take longer to transition due to consumer sensitivity to the prices of entry-level models.
Sources familiar with Toyota’s product planning told Reuters that besides hybrid cars, Toyota plans to have around 30% of its global fleet converted to electric vehicles by 2030, focusing on full electric versions of a few existing popular models.
The popularity of Toyota’s hybrid cars stems from the company’s investment over decades in cost reduction, improving efficiency, and performance of its gasoline-electric powertrains.
For most Toyota models, opting for pure hybrid models is relatively easy for both the car manufacturer and customers, as traditional hybrid technology nowadays usually only adds less than $2,000 to the retail price.
As of 2019, hybrids accounted for less than 3% of total vehicle sales in the United States. However, Cox Automotive, an automotive industry research firm, reveals that this proportion has now reached 11.3% and is still rapidly growing.
Having dominated the hybrid field, Toyota has seen more significant growth, prompting executives to consider introducing all-hybrid models. In 2018, hybrid cars accounted for only 9% of Toyota’s sales, but as of June this year, that figure had risen to 37%.
As of June 30, Toyota’s hybrid car sales in the United States had risen by 66% compared to the same period last year, reaching 438,845 units, whereas electric vehicle sales were only 15,107 units.
Cox Automotive estimates that demand for electric cars may continue to grow moderately in the coming years.
Stephanie Valdez Streaty, a senior analyst at Cox Automotive, stated, “The growth of electric vehicles will continue, but it will not reach the rapid pace of recent years.”
“At the same time, conventional hybrids and plug-in hybrids will continue to erode the sales of electric vehicles because they are simpler, more familiar alternatives, and eliminate range anxiety,” she said.