Toyota expects half its new car sales to be electrified in 2025

Toyota expects half its new car sales to be electrified in 2025
  • More than 50% of U.S. sales in 2025 are likely to be “electrified” (hybrids, PHEVs, and EVs)
  • Same exec previously suggested 2025 sales topping 50% from hybrids alone
  • North Caroline battery sourcing may help in the electrified push

While it’s still struggling with sales of all-electric vehicles, Toyota has seen substantial growth in hybrids and plug-in hybrids that’s further displacing sales of pure internal-combustion models.

Sales of what Toyota calls “electrified vehicles”—including EVs, hybrids, plug-in hybrids, and hydrogen fuel-cell vehicles—accounted for 43% of the automaker’s U.S. sales volume in 2024, according to Toyota’s annual sales roundup released last month.That’s up from 29% in 2023, according to Toyota sales figures.

That gets even closer to what Toyota’s been expecting: more than 50% hybrid sales in its U.S. lineup. Toyota is expected to top 50% electrified sales (including hybrids, plug-in hybrids, EVs, and hydrogen fuel-cell models) in 2025, as David Crist, Toyota Division group vice president and general manager for North America, recently pointed out to Automotive News.

Crist has made an even more impressive claim in previous interviews from recent months—including to Reuters last August: that hybrids alone will top 50% of its sales. 

Toyota Greensboro-Randolph Megasite (North Carolina) - under construction

Toyota Greensboro-Randolph Megasite (North Carolina) – under construction

And as Toyota has emphasized for a couple of years, the ratio of hybrids will keep climbing as a new North Carolina battery plant comes online, easing the supply chain.

Toyota announced the North Carolina plant in 2021, saying at the time that it would be ready to build battery cells for hybrids and EVs starting this year. In 2022, still during early days of work on the factory, Toyota announced a $2.5 billion expansion to add EV battery manufacturing capacity. That will help pave the way for more U.S.-market EVs from Toyota, which currently sells only the bZ4X and its luxury-branded Lexus RZ sibling in this market.

2025 Toyota bZ4X

2025 Toyota bZ4X

The North Carolina factory is also expected to supply batteries for a Kentucky-made three-row electric SUV starting in 2026, and Toyota has even debated ending sales of pure internal-combustion cars in the U.S., but hybrids and plug-in hybrids will likely continue to make up the bulk of its “electrified vehicle” sales for the time being.

Nearly every model in Toyota’s U.S. lineup now offers a hybrid powertrain option, and the bread and butter Camry midsize sedan is now sold exclusively as a hybrid. Toyota also sells plug-in hybrid versions of the Prius and RAV4, as well as the Mirai hydrogen fuel-cell vehicle. But sales of that sedan are limited to California, and slow sales forced Toyota to slash its price to around $17,000 in January.

Author: EVAI

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