Summary
- Toyota’s sales of electrified models in the U.S. accounted for 48% in September
- Toyota is considering ending sales of non-hybrid combustion models in the U.S.
- Toyota is set to produce a three-row electric SUV in Kentucky in 2026
- The automaker plans to increase EV production tenfold by 2026 on a global level
- Toyota is also moving ahead with low-volume production of solid-state batteries
Article
Toyota is in the midst of a major shift towards electrified vehicles, with sales of hybrids, plug-in hybrids, electric vehicles, and hydrogen fuel-cell vehicles making up a significant portion of its U.S. sales. Electrified models accounted for 46% of Toyota’s U.S. sales in September, a significant increase from just 20% two years prior. This shift is being driven by consumer demand for more environmentally friendly vehicles, as well as regulatory pressures to reduce emissions and combat climate change.
Toyota is considering whether to stop making pure internal-combustion engine vehicles for the U.S. market altogether, with Gill Pratt, Toyota’s chief scientist, indicating that a decision is being made on this matter. The automaker believes that it is reaching a tipping point where sales of electrified vehicles will overtake traditional gas-powered cars. Nearly every model in Toyota’s U.S. lineup currently offers a hybrid powertrain, with some models only available as hybrids. This shift towards electrification is part of Toyota’s larger strategy to increase its production of electric vehicles and reduce its carbon footprint.
Toyota currently offers a range of electrified models in the U.S, including hybrids, plug-in hybrids, and fuel-cell vehicles. The Prius and RAV4 are available as plug-in hybrids, with Toyota phasing out the Prime badge to improve customer recognition. The hydrogen fuel-cell Mirai sedan is also available in California, although infrastructure challenges have made hydrogen cars less practical in the state. Toyota’s only all-electric models in the U.S. are the bZ4X and the related Lexus RZ, although the automaker plans to expand its electric vehicle lineup in the future.
In 2026, Toyota plans to introduce a three-row electric SUV in the U.S., with batteries supplied by a new factory in North Carolina. This move is part of Toyota’s global strategy to increase its production of electric vehicles, with the company recently announcing a tenfold boost in EV production by 2026. Toyota is also exploring the potential of solid-state batteries, which could be game-changing for electric vehicles due to their increased energy density and faster charging capabilities.
Despite these advancements, Toyota continues to face challenges in the transition to electrified vehicles, particularly in regions with limited charging infrastructure. The automaker is also considering the impact of these changes on its production processes and supply chain, as well as the potential financial implications of shifting away from pure gas-powered cars. However, Toyota remains committed to reducing its carbon footprint and meeting the growing demand for environmentally friendly vehicles.
Overall, Toyota’s shift towards electrified vehicles reflects the broader trend towards sustainable transportation and the need to reduce greenhouse gas emissions in the transportation sector. By increasing its production of electric vehicles and phasing out pure internal-combustion engine models, Toyota is positioning itself as a leader in the transition towards a more sustainable transportation system. This shift is driven by consumer demand, regulatory pressures, and the company’s commitment to environmental sustainability.
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