Toyota’s expansive lineup of hybrids is looking increasingly attractive to drivers who want some of the EV experience, but are also worried about getting stranded with a dead battery and no charging station nearby. EV sales are taking a dive as the early adopter demographic is about spent and the average driver has strong concerns about the practicality of a purely electric vehicle.
Growing Number of Consumers Passing on EVs
Toyota has long been a dominating force in the hybrid market, ever since coming out with the Prius in the early 2000s. Toyota has since increased its hybrid lineup to include the Camry, Corolla Cross, RAV4, Corolla, Crown sedan, Venza crossover, Sequoia SUV, Sienna minivan, Grand Highlander, and Highlander. It’s quite the lineup that has plenty of customers typing in searches like Toyota Highlander Near Me.
A few of Toyota’s hybrid models are also plug-in types, like the RAV4 Prime. These hybrids give customers the best of both worlds with some features of an EV, but the peace of mind that comes with having a gas engine and plenty of filling stations nearby.
Meanwhile, high-interest rates and a cloudy economic outlook have prompted many of Toyota’s rivals to curtail EV production and warn of drastic sales decreases. On the other hand, Toyota is expected to post a more upbeat earnings report that is greatly helped by its reliance on hybrid models.
Toyota Amps Up Hybrid Lineup
Despite Toyota’s already impressive hybrid lineup, the Japanese automaker intends to amp up sales of hybrid models to at least 40% and preferably 50% of total sales. Toyota is planning to make the top-selling Camry a hybrid-only model as well. The next generation of the popular sedan will only come in a hybrid version.
Toyota is the world’s top-selling carmaker, but the company has been very slow to adopt purely electric models. The industry seems to still believe that battery-operated EVs will make up the long-term future of the auto industry, despite weakening sales as early adopters phase out.
Toyota sold only 104,000 battery EV models in 2023, which is less than 1% of its total sales, even including the Lexus brand. The company has plans to increase shipments of EVs to 1.5 million by 2026, which is still below Tesla’s 1.8 million shipments in 2023.
Hybrid Sales Rising
Even if Toyota isn’t in a great position for any increase in demand for EVs, it’s in a great position right now as hybrid sales in the USA heat up. Consumers are balking at high prices for EV models and many are anxious about the range they can expect, especially in areas where charging stations are quite scarce. In the Midwest, demand is even lower as freezing temperatures can strand EVs in the cold.
However, the demand for hybrids has gone up so quickly that many buyers are seeing year-long wait times for deliveries. Meanwhile, Tesla has cut prices sharply in major markets like the USA and China thanks to reduced demand for EVs.
All of these factors are currently benefiting Toyota, which is currently the automaker with the most hybrid sales in the USA.
