Toyota Plans Major Push into Plug-In Hybrids

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Toyota Plans Major Push into Plug-In Hybrids
May 28th, 2025

Toyota is ramping up its plug-in hybrid electric vehicle (PHEV) strategy in the U.S., targeting a fivefold increase in sales share by 2030 amid regulatory uncertainty and cooling demand for fully electric vehicles.

David Christ, head of the Toyota brand in North America, said the automaker aims to raise PHEVs to 20% of its U.S. sales by the end of the decade, up from 2.4% last year. The company will expand PHEV options across its model lineup and increase electric-only driving range.

Toyota sees PHEVs as a crucial middle ground for consumers hesitant to embrace full EVs. Unlike traditional hybrids, plug-ins operate entirely on battery power for short trips before switching to gasoline, offering more flexibility.

The strategy aligns with California’s Advanced Clean Cars II regulation, which caps PHEV sales at 20% of total zero-emission vehicles by 2035. President Trump is expected to revoke that rule, which could reshape the market landscape.

Toyota continues to invest heavily in battery EVs but sees PHEVs as a vital component of its near-term U.S. strategy. Improved performance and customer interest are expected to drive adoption.

Dominic Maley

Dominic Maley is an American journalist recognized for his sharp and insightful reporting on social and political issues. His work is known for its depth, integrity, and the ability to highlight critical societal concerns.

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