Although Toyota Motor Corp (NYSE:TM) has been one of the slowest legacy automakers to develop electric vehicles, it reportedly might be the first to eliminate cars powered solely by gasoline.
Nearly 30 years after introducing the Prius, its groundbreaking gasoline-electric hybrid, Toyota plans to transition most, and possibly all, of its Toyota and Lexus lineup to hybrid-only models, reported Reuters, citing statements from two Toyota executives.
Toyota's persistent emphasis on hybrids rather than EVs reflects a broader challenge by the world's largest automaker against the prevailing industry and regulatory belief that all cars will soon be electric.
In January, Toyota Chairman Akio Toyoda expressed his belief that the global share of EVs would peak at around 30%.
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The Japanese automaker promotes a "multi-pathway" strategy, incorporating EVs, hybrids, hydrogen fuel-cell vehicles, green fuels and potentially other future technologies.
"Going forward, we plan to evaluate, carline by carline, whether going all-hybrid makes sense," David Christ, head of sales and marketing for Toyota in North America, told Reuters.
These evaluations will occur with each model redesign, if not sooner.
This includes the upcoming overhaul of the RAV4 for the 2026 model year. As America's top-selling SUV, the RAV4 already offers hybrid variants that makeup about half its sales. According to two sources familiar with Toyota's product planning, the company will likely eliminate the gasoline-only version for the North American market. However, no final decision has been made yet.
Toyota has already discontinued the gasoline-only Camry, its best-selling sedan, for the 2025 model year, and its rugged Land Cruiser and Sienna minivan now come exclusively as hybrids.
Many hybrid-only models are expected to offer a plug-in hybrid option with a larger battery. This initiative to transition nearly all of Toyota's North American lineup to hybrid-only vehicles has not been previously reported.
TM Price Action: Toyota shares are trading higher by 2.53% to $181.48 at publication Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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Photo: Toyota Prius courtesy Toyota