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Toyota doubles down on hybrids in the U.S.

Meca Miciano

Toyota doubles down on hybrids in the U.S.

Toyota Motors is set to make all its major models in the United States hybrid electric vehicles by 2030, reinforcing its commitment to the environment-friendly technology despite the uncertainties in the electric vehicle (EV) market.

During a recent test-drive event at Toyota’s North American headquarters in Texas, half of the 26 showcased models were hybrids, while two were electric.

What is a hybrid car?

As defined by Toyota, a hybrid car is a vehicle that uses two or more power sources: electricity and internal combustion. Hybrid vehicles offer several benefits over cars powered solely by petrol or electric alone, such as:

Kevin Butt, director of environmental sustainability at Toyota Motor North America (Photo source: TMNA)

Toyota plans wants roughly 80% of its North American sales to be for electrified vehicles, including hybrids and EVs.

Kevin Butt, director of environmental sustainability at Toyota Motor North

2. Improved performance. Hybrids accelerate faster due to the electric motor’s ability to provide instant torque at low speeds. The electric motor can also supplement a car’s internal combustion engine when extra power is needed, such as when driving uphill or accelerating.

3. Reduced noise pollution. With quieter engines and better aerodynamics, hybrid vehicles create less wind noise than standard non-hybrid vehicles, especially in ‘stop-start’ driving conditions where acceleration is frequently needed.

Kevin Butt, the regional environmental sustainability director at Toyota Motor North America, told Nikkei Asia that by 2030, Toyota plans wants roughly 80% of its North American sales to be for electrified vehicles, including hybrids and EVs.

According to Butt, Toyota’s overall hybrid sales in the U.S. saw a 66% increase in the first half of 2024, reaching 410,000 units. Hybrids now make up 33% of Toyota’s North American sales, up from 27% in 2023. Holding nearly 60% of the U.S. hybrid market share, Toyota and its luxury brand Lexus are well-positioned to expand further as EV sales growth slows.

Toyota’s dominance in the hybrid market reflects its two-decade-long history, starting with the 1997 release of the Prius, the first mass-produced hybrid. This early entry helped Toyota become almost synonymous with hybrids in the United States and made hybrids a significant profit source for the global car giant.

Meca Miciano

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