I still remember when Toyota was unfashionably late to the electric vehicle (EV) party back in 2020, awkwardly slipping in with just one electric SUV, the bZ4X5 (Sounds like a wifi password. Who names these cars?). Well, it seems they’ve decided to take out their dentures and slip into some skinny jeans to catch up with the times. Word on the street is that Toyota’s about to convert most, if not all of its Toyota and Lexus lineup to hybrid-only models. They’re basically a hybrid or bust company now. 

Toyota’s new strategy is not exactly what the EV treehuggers were expecting. According to insider sources, the company plans to phase out gasoline-only models and replace them with hybrids. Think of it as Toyota’s way of saying, “We’ll meet you halfway, but we’re not diving headfirst into the deep end of the EV pool.”

David Christ, Toyota’s North American sales and marketing mastermind, just couldn’t keep it under wraps—he spilled the news that they’re putting every car model under the microscope to decide if it’s time to go full-on hybrid. The 2025 Camry? Already decided. It's going full hybrid, following in the footsteps of the Sienna minivan and the Land Cruiser. Next on the chopping block? The RAV4, which is due for a makeover in 2026. If you’ve been eyeing a gas-guzzling RAV4, better grab it while you can.

(Source: car pro) 

But from what I’ve seen, Toyota isn’t just playing around with this hybrid talk. They’re backing it up with some serious numbers. Hybrid vehicles made up 37% of Toyota’s sales as of June, a big jump from just 9% in 2018. And now, Toyota "crystal ball" sees hybrids grabbing more than half of their sales next year. 

This shift isn’t just about keeping up with consumer demand; it’s also a clever way to navigate the tightening emissions regulations in the U.S. By rolling out more hybrids, Toyota can score major points under the new rules set to kick in by 2027. Don’t forget, Tesla made over a billion dollars last year alone just from carbon credits. Toyota sees that cash cow and isn’t about to let Elon have all the fun. With a massive battery plant coming online in North Carolina by 2030, they’re positioning themselves to dominate the hybrid market.

So, why isn’t Toyota going all-in on EVs like the rest of the auto world? Because Akio Toyoda, the company’s chairman, isn’t sold on EVs like most of corporate America.

He’s betting that EVs will only snag about 30% of the market, leaving a lot of space for hybrids, hydrogen fuel cells, and maybe flying cars, or whatever other tech might still be hiding behind the bushes. Basically, Toyota’s taking the smart gambler’s approach, spreading their chips across the table. They’re banking on hybrids to offer the perfect middle ground—lower emissions without the massive infrastructure overhaul that full EVs demand (not to mention the headaches).

(Source: Forbes)

And it looks like Wall Street’s on board with this strategy too. Since the announcement, Toyota’s stock is up 8%.

Stocks.News holds a position in Toyota.