Toyota Motor Corporation, long known for its pioneering efforts in hybrid technology, is shifting gears as the electric vehicle (EV) market shows signs of slowing. The Japanese automaker is planning to convert most, if not all, of its Toyota and Lexus models to hybrid-only vehicles, according to company executives.
The decision comes nearly 30 years after Toyota launched the Prius, the world’s first mass-produced hybrid car. Now, the automaker is taking bold steps to phase out gasoline-only vehicles, a move that could set a new standard in the industry.
David Christ, Toyota’s Head of Sales and Marketing for North America, explained the strategy, saying, “We are evaluating, model by model, whether an all-hybrid approach is the best path forward.” This evaluation will influence every model redesign, starting as early as 2026 with the RAV4, America’s best-selling SUV. Already, hybrid variants account for about 50% of RAV4 sales.
Toyota’s shift is seen as a challenge to the prevailing belief in the automotive industry that the future belongs exclusively to electric vehicles. Instead, Toyota Chairman Akio Toyoda has publicly stated that he expects EVs to capture no more than 30% of the global market. “We believe in a multi-pathway approach,” Toyoda remarked earlier this year, referring to the company’s commitment to not only EVs but also hybrids, hydrogen fuel-cell vehicles, and alternative green fuels.
The automaker has already discontinued gasoline-only versions of several key models. For instance, the 2025 Camry, America’s best-selling sedan, will be available exclusively as a hybrid. Similarly, the Land Cruiser and Sienna minivan are now offered only in hybrid configurations. Sources close to Toyota’s product planning also hinted that many of these hybrids could be upgraded to plug-in hybrids with larger batteries.
Toyota’s comprehensive shift towards hybrids in North America has not been widely reported until now, but it marks a significant milestone in the company’s ongoing efforts to balance environmental concerns with market demands.
As Toyota bets big on hybrids, it remains to be seen how the broader automotive industry will respond to this bold strategy. However, with hybrids continuing to gain popularity among consumers, Toyota’s move could well signal a new direction for the future of transportation.
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