- Toyota plans to phase out gasoline-only models across its Toyota and Lexus lineups, potentially making all future models hybrid-only.
- Toyota’s shift to hybrids addresses slowing EV demand due to high costs and charging issues. By focusing on hybrids, the automaker aims to meet stringent US carbon-emission regulations and avoid substantial fines while gradually advancing towards EV adoption.
- Toyota will invest $35 billion in new batteries and EV platforms by 2030 and is developing smaller combustion engines to enhance hybrid efficiency.
Toyota, known for its slow adoption of electric vehicles (EVs), is set to lead a significant shift away from gasoline-powered cars. Nearly three decades after introducing the Prius, the automaker plans to convert most, if not all, of its Toyota and Lexus models to hybrid-only versions, according to recent statements by company executives.
With this strategic pivot, Toyota challenges the industry’s push towards an all-electric future. Toyota Chairman Akio Toyoda believes EVs might only capture around 30% of the global market. Instead, Toyota commits to a “multi-pathway” strategy, integrating hybrids, hydrogen fuel-cell vehicles, green fuels, and other emerging technologies.
David Christ, head of sales and marketing for Toyota North America, outlined the company’s plan to evaluate each vehicle model individually to determine if an all-hybrid approach makes sense. Toyota will conduct these evaluations with every model redesign and possibly sooner.
The 2026 redesign of the RAV4, America’s best-selling SUV, may see the discontinuation of its gasoline-only version in North America, though Toyota has not decided yet. The Camry, Land Cruiser, and Sienna minivan have already transitioned to hybrid-only offerings. Future hybrids will feature larger batteries and may include plug-in hybrid options.
Toyota’s hybrid strategy addresses a market where EV demand slows due to high prices and challenges with charging infrastructure. Unlike EVs, Toyota’s hybrids do not require external charging and can switch seamlessly between gasoline and electric power. Plug-in hybrids can travel about 40 miles on battery power alone before using the gasoline engine.
The company’s shift to hybrids also responds to new US carbon-emission regulations set to take effect from the 2027 model year. By focusing on hybrids, Toyota aims to avoid substantial regulatory fines and costs, leveraging existing technology while gradually advancing towards full EV adoption. Projections indicate hybrid sales could exceed 50% of Toyota’s total volume next year.
Despite its hybrid focus, Toyota plans to invest $35 billion in new batteries and EV platforms by 2030. The company is also exploring smaller combustion engines that could pair with hybrid drivetrains to enhance efficiency. Toyota expects the first such hybrid to be a Corolla plug-in hybrid, launching in China in 2026 and the US in 2027.
Toyota’s hybrid models have become a key component of its strategy, helping the company meet increasingly stringent emissions standards and maintain its competitive edge. As Toyota continues to dominate the hybrid market, these models will play a crucial role in balancing immediate regulatory compliance with long-term EV development.