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Toyota Wagers Heavily on Hybrid-Only Cars as EV Demand Stalls

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Toyota may be one of the slowest legacy manufacturers to produce electric vehicles, but it could be the first to phase out gasoline-powered automobiles.

Toyota is preparing to switch the majority, if not all, of its Toyota and Lexus lineup to hybrid-only models, nearly three decades after debuting the Prius, its pioneering gasoline-electric hybrid.

Toyota’s steadfast preference for hybrids over EVs is part of a broader challenge by the world’s largest carmaker to the industry and regulatory consensus that all cars will be electric in the near future.

In January, Toyota Chairman Akio Toyoda predicted that the global percentage of EVs would peak at 30%.

Instead, the Japanese carmaker promotes a “multi-pathway” plan that incorporates EVs, hybrids, hydrogen fuel-cell vehicles, green fuels, and possibly more technologies that have yet to be developed.

“Going forward, we plan to evaluate, carline by carline, whether going all-hybrid makes sense,” David Christ, Toyota North America’s chief of sales and marketing, said.

These evaluations will be included with every model revision, if not sooner. That includes the upcoming revamp of the RAV4 for the 2026 model year.

The RAV4, America’s best-selling SUV, already includes hybrid versions, which account for roughly half of sales.

The company has already discontinued the gasoline-only version of its Camry, America’s best-selling sedan, for the 2025 model year, and its tough Land Cruiser and Sienna minivan, for example, are now only available as hybrids.

Many of the hybrid-only vehicles will also be available as plug-in hybrids with larger batteries, according to the two persons who declined to be identified.

Toyota’s plans to transition all or almost all of its North American lineup to hybrid-only vehicles have not previously been disclosed.

Also Read: Japanese Regulators Audit Toyota HQ Over Certification Violations

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