While many automakers are rushing to electrify their fleets, Toyota is taking a more cautious approach. Instead of going all-in on pure electric vehicles (EVs), they’ve expanded their hybrid lineup, introduced plug-in hybrid electric vehicles (PHEVs), and released a handful of EVs. This strategy has drawn criticism, but Toyota’s calculations are proving correct.
The lukewarm consumer response to EVs has forced many of Toyota’s rivals to cancel costly EV projects, delay full electrification plans, and reevaluate their product strategies.
The New Strategic Move: PHEV
Toyota is not immune to trends and is accelerating its plans to expand its PHEV portfolio. The company aims for these vehicles to account for about 20% of its total US sales by 2030, a significant increase from the current 2.4%. However, this number is not set in stone and depends on various factors such as production capabilities and market demand.
Toyota already offers PHEVs such as the Prius Prime and RAV4 Prime, while its luxury brand, Lexus, contributes with the RX, NX, and TX plug-in hybrids.
The RAV4 PHEV – A Step Forward for Toyota
David Christ, CEO of Toyota North America, stated, “We will continue to expand our PHEV offerings across our lineup over the next few years.” He also revealed that the company is working tirelessly to increase the all-electric range of their new PHEV models.
While specific models for PHEV expansion have not been disclosed, Christ emphasized that Toyota is conducting a comprehensive evaluation based on product potential and competitive advantage.
Toyota Grand Highlander – A Prime Candidate for PHEV
One of the most promising options for Toyota’s next move is the Toyota Grand Highlander, a large SUV that could share a powertrain with the Lexus TX 550h+. This setup features a 3.5L V6 engine combined with two electric motors and an 18.1 kWh battery, delivering a total output of 404 horsepower and an all-electric range of approximately 53 km.
However, in an interview in 2023, Toyota representatives expressed reluctance toward this idea, suggesting that the two existing hybrid versions of the Grand Highlander sufficiently meet customer needs.
Challenges and Opportunities: Bridging the Gap
According to a report, Toyota and Lexus PHEV sales in the US grew by approximately 39% last year, indicating a positive shift in customer acceptance of fuel-efficient, chargeable vehicles.
However, one of the biggest hurdles is consumer awareness. In 2021, Toyota revealed a survey showing that 75% of customers confused regular hybrids with plug-in hybrids, believing that all hybrids required charging. Despite two decades since the Prius’ debut, this information gap continues to challenge the company’s communication efforts.
Toyota acknowledges the challenges ahead but believes that PHEVs offer a sensible bridge between traditional gasoline cars and fully electric vehicles. As the EV market grapples with infrastructure and cost bottlenecks, Toyota’s strategy of “not putting all eggs in one basket” may continue to provide a long-term competitive advantage.
The All-New Isuzu D-Max EV: An Electric Pickup Ready to Challenge the Toyota Hilux and Ford Ranger Dominance
Isuzu has unveiled its new electric pickup truck, the D-Max EV, marking a strategic move towards electrifying the mid-size commercial vehicle segment. This exciting reveal showcases Isuzu’s commitment to innovation and sustainability in the automotive industry. With production based in Europe, the D-Max EV promises to be a game-changer, offering a sustainable and powerful alternative to traditional pickup trucks.
The Future of Driving: Is PHEV Ownership in Vietnam Truly a “Hassle”?
In recent times, the Vietnamese automotive market has witnessed the emergence of an exciting new breed of vehicles – the plug-in hybrid electric vehicle (PHEV). These innovative automobiles are set to revolutionize the industry, offering a compelling blend of electric efficiency and traditional engine performance. With their arrival, a new era of environmentally conscious and economically viable transportation is upon us, presenting a tantalizing prospect for drivers seeking a sustainable future.
The Ultimate Workhorse: Nissan Unveils its First Plug-in Hybrid Pickup Truck
At the 2025 Shanghai International Auto Show, Nissan unveiled its highly anticipated new pickup truck, the Frontier PRO Plug-in Hybrid. This groundbreaking vehicle signifies a pivotal moment in the Japanese automaker’s electrification strategy, showcasing their commitment to innovation and sustainability.
The Lexus RX 350h 2025: Unveiling Luxury, Efficiency, and Impressive Upgrades
After a much-anticipated wait, Lexus finally unveiled the RX 350h in Vietnam on May 27. This highly-awaited hybrid model is the second addition to the RX lineup in the domestic market, following the RX 500h F Sport Performance. The RX 350h is designed to impress eco-conscious consumers who crave both performance and environmental friendliness.
Toyota Sports 800 – The Classic Ride of a Legend: A Cool 1.3 Billion VND
The photos of this Toyota Sports 800 reveal a car in need of some TLC, which has sparked confusion online about its asking price of $50,000 – a whopping sum of nearly 1.3 billion VND.
