Summary

  • Over 50% of U.S. sales for Toyota in 2025 likely to be "electrified" vehicles
  • Sales of electrified vehicles accounted for 43% of Toyota’s U.S. sales volume in 2024
  • North Carolina battery plant to help with electrified push
  • Toyota has seen growth in hybrids and plug-in hybrids, displacing internal-combustion models
  • Toyota expected to top 50% electrified sales in 2025, including hybrids, plug-in hybrids, EVs, and hydrogen fuel-cell models

Article

In the United States, it is predicted that more than 50% of vehicle sales in 2025 will be electrified, which includes hybrids, plug-in hybrids, and electric vehicles. Toyota, a leading automaker, has seen significant growth in hybrids and plug-in hybrids, displacing sales of traditional internal-combustion models. In 2024, electrified vehicles accounted for 43% of Toyota’s U.S. sales volume, up from 29% in the previous year. The company is aiming to surpass a 50% market share for electrified vehicles in 2025, with hybrids alone expected to make up more than 50% of sales.

Toyota is making efforts to increase its hybrid sales through the construction of a new battery plant in North Carolina. The plant, set to begin production this year, will manufacture battery cells for hybrids and electric vehicles. Toyota has also announced plans to invest in expanding the facility to include EV battery manufacturing capacity. This will allow the company to introduce more electric vehicles to the U.S. market, as they currently only offer the bZ4X and Lexus RZ models. Additionally, the North Carolina factory is expected to supply batteries for a three-row electric SUV to be made in Kentucky starting in 2026.

With the implementation of the North Carolina battery plant, Toyota hopes to further boost the ratio of hybrids in its lineup. The company has hinted at the possibility of ending sales of pure internal-combustion cars in the U.S., but for now, hybrids and plug-in hybrids will continue to dominate its electrified vehicle sales. Toyota’s U.S. lineup now includes hybrid powertrain options for nearly every model, with the Camry midsize sedan being exclusively sold as a hybrid. There are also plug-in hybrid versions of the Prius and RAV4, as well as the Mirai hydrogen fuel-cell vehicle.

Toyota’s emphasis on increasing its electrified vehicle sales is part of a broader industry trend towards greater adoption of electric and hybrid technologies. With advancements in battery technology and an increasing focus on sustainability, automakers are transitioning towards electrified powertrains to reduce emissions and meet regulatory requirements. As more consumers seek environmentally friendly transportation options, the demand for hybrids, plug-in hybrids, and electric vehicles is expected to continue to grow. Toyota’s commitment to expanding its hybrid and electric vehicle offerings demonstrates its dedication to meeting the evolving needs of consumers and environmental standards.

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