The Auto Titan Who Anticipated the EV Slowdown Is Making a Major Investment in Plug-In Hybrids | Carscoops

      Toyota is making strides in the plug-in hybrid market with a target of achieving 20% of its sales from these vehicles by 2030, prioritizing growth and innovation.

      With the slower-than-anticipated adoption of electric vehicles, the company aims to broaden its range of plug-in hybrids, hoping for 20% of its sales in the U.S. to come from these models by the end of the decade. Currently, both Toyota and Lexus provide plug-in hybrid options for the Prius, RAV4, RX, NX, and TX.

      While numerous manufacturers focused their efforts solely on electric vehicles, Toyota opted for a more diverse approach, expanding its hybrid offerings, launching plug-in hybrids, and introducing several electric vehicle models. Despite receiving criticism for this strategy, it has proven effective as the transition to electric vehicles has been more gradual than expected. As a result, competitors have had to scale back costly electric vehicle initiatives, delay projects, and postpone plans for an all-electric lineup.

      Recently, Toyota's cautious approach has led them to explore further developments in plug-in hybrids. The automaker is already familiar with this segment, having introduced environmentally friendly versions such as the Prius and RAV4. Lexus also offers plug-in hybrid variants like the RX, NX, and TX.

      Looking ahead, Toyota’s North American president expressed to CNBC that the company intends to enhance its PHEV offerings over the next few years, aiming to “perpetually increase” the electric-only driving range.

      While it was not specified which models might get a plug-in hybrid version, Christ mentioned that they are examining the entire lineup for potential additions. He noted that decisions will depend on manufacturing capabilities and competitive product strength.

      A likely candidate for a plug-in hybrid variant could be the Toyota Grand Highlander, potentially using the same powertrain as the Lexus TX 550h+. This model features a 3.5-liter V6 engine paired with two electric motors and an 18.1 kWh battery pack, delivering 404 hp (301 kW / 410 PS) and a 33-mile (53 km) electric-only range.

      Nevertheless, when we inquired about the possibility of a Grand Highlander PHEV in 2023, Toyota representatives downplayed it, expressing confidence in their existing two hybrid options.

      In 2022, plug-in hybrids accounted for only 2.4% of Toyota's U.S. sales, but industry insiders suggest that the manufacturer aims to increase this figure to approximately 20% by 2030. Achieving this goal would represent a significant shift, although the target remains flexible due to various influencing factors.

      On a positive note, sales of plug-in hybrids have increased by around 39% last year for Toyota and Lexus customers. However, a knowledge gap still exists that must be addressed. This issue has persisted throughout Toyota's electrification journey, as research from 2021 indicated that 75% of consumers mistakenly believed hybrids needed to be plugged in, a statistic that officials found frustrating given that the Prius was introduced over twenty years ago.