TOYOTA'S HYBRID ASSAULT ABOUT TO GO INTO OVERDRIVE

It's been nearly 30 years since Toyota introduced hybrid technology with the Prius. These days, just about every automaker has a hybrid in its lineup. While several brands are going for an all-electric approach, Toyota believes in a measured outlook and plans to offer all types of powertrains: hybrid, PHEV, battery-electric, and even hydrogen fuel cell technology.

Now, according to Reuters, it seems the Japanese brand wants to go hybrid-only across the Toyota and Lexus lines. David Christ, head of sales and marketing for Toyota North America, told the publication that the automaker is looking at going all-hybrid. "Going forward, we plan to evaluate, carline by carline, whether going all-hybrid makes sense," he said.

Toyota

Toyota is a Japanese automaker founded in 1937 that has developed a reputation for reliability across a multitude of segments, from sports cars and family sedans to pickup trucks and off-roaders. Famous models from the brand include the Hilux, Land Cruiser, Camry, Crown, and Corolla, the latter being the world's best-selling vehicle nameplate, with more than 50 million Corolla-badged vehicles being sold since it was first introduced. Toyota typically competes in the mainstream market, but is also famous for launching Lexus as a luxury sub-brand to take on Mercedes-Benz.

An All-Hybrid Toyota Lineup Makes A Lot Of Sense

The new Camry was introduced last year exclusively as a hybrid, and it's a very smart call. The new evaluations are expected to come with every model redesign, which includes the upcoming RAV4, due in 2026. The current generation is Toyota's best-selling vehicle in the United States. More than half of the models sold in the United States are hybrids or PHEVs, so it would make sense for Toyota to head in the hybrid-only direction. Toyota has yet to make an official decision regarding the RAV4, though.

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Let's not forget that the Camry isn't the only hybrid-only model in Toyota's lineup. The quirky Crown luxury sedan, the Sienna minivan, and the Crown Signia are just some of the hybrid-only vehicles Toyota offers in the United States. The automaker may introduce plug-in hybrid variants alongside these potential hybrids, giving customers more choices when it comes to electrification. Given that the growth rate of demand for electric cars is declining, this seems like a smart move on Toyota's part.

Hybrids Are Important, But EVs Haven't Been Forgotten

Toyota has not set a target date for its all-hybrid setup. It's worth noting that certain model lines may take longer to use hybrid-only setups, due to pricing considerations. This would likely affect the base versions of smaller economy cars (like the Corolla) and entry-level pickup trucks. Toyota has been criticized for being hesitant to embrace electric cars, but that's not the case. By 2030, the Tokyo-based firm intends to have EVs account for 30% of its global fleet.

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The company will do so by electrifying existing top-sellers, said two unnamed company sources, which means we may get battery-powered versions of the RAV4, Camry, and even the Corolla. Toyota has just two fully-electric vehicles; the bZ4X and the Lexus RZ. As CarBuzz previously reported, an all-electric Highlander is in the cards, and it will be built in America, at Toyota's Kentucky plant.

A Corolla PHEV Is Coming In 2027

Until then, however, hybrids will continue to drive Toyota towards profitability. Just six years ago, hybrids accounted for 9% of Toyota's sales. As of June 2024, that number has increased to 37%. As electrification becomes more important - and gas prices continue to soar - this number will only rise. "Next year, we definitely will be well over 50% of our total volume," said Christ.

Toyota is already developing new four-cylinder engines, designed from the get-go for electrification. They will be made available in 1.5- and 2.0-liter guises, and are said to improve fuel efficiency by as much as 12% compared to the current crop of engines. The automaker intends for these powerplants - which could gain motivation from synthetic fuels - to be paired with hybrid setups.

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Unnamed sources told Reuters that the new engines will allow Toyota engineers to develop hybrids uniquely. Instead of electrifying a traditional combustion platform, the company plans to start with an electric car platform and then add smaller engines, creating a sophisticated hybrid. While unconfirmed, Toyota insiders claim the first of these cars will be a Corolla PHEV, due to arrive in the USA in 2027. It's safe to assume that a Corolla plug-in hybrid will be a license to print money.