Toyota is doubling down on the strategy that has already made it the undisputed leader in hybrid electric vehicles, outlining plans to significantly scale up hybrid and plug-in hybrid production over the next several years.
The company announced it will raise global output of hybrids to around 6.7 million vehicles by 2028, a 30% increase compared with its 2026 target of five million units.
At the same time, Toyota aims to lift its overall global vehicle production to roughly 11.3 million units in 2028, about 10% higher than its current planning baseline, with hybrids expected to make up close to 60% of that total, up from about half today.
A major pillar of this expansion will be the United States, where hybrid demand has surged as consumers look for fuel-efficient alternatives without the cost or charging concerns associated with full battery-electric vehicles.
Hybrid versions of key models such as the Camry sedan and Tacoma pickup have posted strong sales, helping Toyota grow U.S. deliveries by 8% last year to 2.51 million vehicles.
To support that momentum, Toyota has committed to investing roughly $10 billion in the U.S. over the next five years, including $1.4 billion earmarked for producing hybrid engines and components at five American plants.
Beyond near-term gains, the company plans to start building the Corolla Hybrid at its Mississippi facility after 2028, further embedding hybrid production into its U.S. manufacturing footprint.
Globally, Toyota’s dominance in hybrids is already overwhelming. By the end of 2025, the automaker controlled an estimated 58% of the worldwide hybrid market, far ahead of competitors such as BYD.
That lead may grow as forecasts for the segment continue to improve. Industry analysts now expect cumulative global hybrid sales to reach around 29 million units by 2030, nearly three million more than previously projected, reflecting strong consumer interest in vehicles that balance lower emissions with everyday usability.
Several policy and market dynamics are fueling this shift. In the U.S., the removal of federal tax credits for EV purchases has made hybrids a more accessible choice for environmentally minded buyers.
In Europe, regulators have softened plans for a strict 2035 ban on new internal combustion vehicles, allowing hybrids to remain on sale longer. Meanwhile, tariffs targeting Chinese-made EVs generally do not apply to hybrids, encouraging both established automakers and new entrants to prioritize hybrid offerings, especially in price-sensitive markets.
Toyota’s steady approach contrasts with the volatility seen among some rivals. Ford has scaled back several EV initiatives, including parts of its F-150 Lightning program, and is facing tens of billions of dollars in write-downs tied to electrification efforts.
General Motors has also been forced to rethink its plans, restructuring production and moving toward hybrid collaborations while absorbing multibillion-dollar charges. Against that backdrop, Toyota’s multi-powertrain strategy, embracing hybrids, plug-in hybrids, battery EVs, and even hydrogen fuel cells, appears increasingly resilient.
Toyota has long argued that hybrids deliver faster and broader emissions reductions than focusing solely on long-range EVs. According to the company, the raw materials needed for a single long-range battery-electric vehicle could instead be used to build six plug-in hybrids or as many as 90 conventional hybrids.
By spreading those resources across more vehicles, Toyota believes it can reduce overall emissions more effectively in the near to medium term. With its latest production plans, the company is signaling that hybrids are not a transitional technology for it, but the core of its global electrification strategy for the rest of the decade.
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