Toyota Motor will sharply lift global hybrid output by 2028 and grow US manufacturing as governments retreat from policies favouring fully electric cars.
The Japanese carmaker expects to build 6.7 million hybrid vehicles in 2028, up from a planned five million hybrid and plug-in hybrid vehicles in 2026, suppliers familiar with the plan told Nikkei Asia.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
This planned increase outpaces Toyota’s overall manufacturing growth.
The company projects total vehicle output to rise by around 10%, yet the share of hybrids in its global production mix is expected to climb from roughly half to about 60% of the 11.3 million vehicles it plans to build in 2028.
Hybrids – which pair a conventional petrol engine with an electric motor and battery – have seen stronger demand as government incentives for battery-only EVs are rolled back or reworked.
In the US, President Donald Trump’s administration has moved to dismantle EV incentives introduced under former President Joe Biden, including purchase tax credits.
In Europe, the European Union has reversed its planned 2035 ban on new internal-combustion-engine vehicles.
Against this backdrop, Toyota intends to grow hybrid production in the US, where electrified versions of established models such as the Camry saloon and Tacoma pick-up have been performing well.
The company’s US sales rose 8% in 2025 to 2.51 million vehicles.
In November, Toyota said it would commit Y1.5tn ($10bn) in the US over five years, beginning with Y140bn to make hybrid engines and components at five plants.
It introduced a hybrid RAV4 in December and plans to start building Corolla hybrid sedans at its Mississippi facility after 2028.
Toyota held 58% of the global hybrid market at the end of 2025, based on company figures and data from Just Auto’s parent company GlobalData.
The UK-based research group later lifted its outlook for worldwide hybrid and plug-in hybrid sales, forecasting 29 million vehicles in 2030, 2.8 million higher than earlier projections.
Rivals are also revising strategies.
Ford Motor is scaling back several EV programmes and expects $19.5bn in write-downs through fiscal 2027.
General Motors is reorganising EV output and aims to co-develop hybrids with Hyundai Motor, while Volkswagen is introducing its first full-hybrid system.
Tesla said last month it would halt production of its premium S and X models and repurpose its California plant for humanoid robots after a 9% annual sales decline to 1.63 million vehicles.
