Toyota has pledged to boost its global production rate for hybrid cars by 30 per cent within the next two years.
GLOBAL BOOST
Earlier in February, Nikkei Asia reported that Toyota announced a new goal to raise its global output of hybrid vehicles to 6.7 million by 2028. Prior to this, the Japanese automaker made a goal to produce 5 million hybrid and plug-in hybrid electric vehicles (PHEV) by 2026. Overall, Toyota plans to outpace hybrid growth with its own production, targeting more than 11 million hybrid and ICE vehicles worldwide.
Toyota’s performance in the global hybrid market may also be a significant factor in the automaker’s choice to boost its hybrid production. In 2025, more than 40 per cent of Toyota’s global sales were hybrid vehicles. It sold around 10.54 million vehicles and held a 58 per cent market share.
If the new goal is achieved, around 60 per cent of Toyota vehicles worldwide will be hybrids by 2028.
AFFECTING REGIONS
According to Nikkei Asia, a key element of Toyota’s plan is its USD 10 billion (AUD 14 billion) investment into manufacturing in the US over the next five years. The company’s decision to invest was driven the current US administration repeal of its EV tax incentives.
Additionally, demand for EVs is also waning in Europe. This trend has prompted the European Union (EU) to set limits on EV sales in the region. According to Reuters, EVs may make up 85 per cent of new vehicles by the year 2035. Though the projection for EV sales may seem strong in the region, EV demand is decreasing, resulting in the EU repealing its ban on combustion vehicles by 2035.
In Australia, demand for hybrid vehicles increased by 15.3 per cent year-on-year. Around 16.5 per cent of new vehicle sales for 2025 were composed of hybrid vehicles. PHEV sales were even stronger, increasing 130.9 per cent year-on-year. Toyota continues to be the best-selling brand for hybrids in the country.
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