From CNBC: 2025-05-28 12:27:00

Toyota Motor is focusing on plug-in hybrid electric vehicles (PHEVs) like the 2023 Prius Prime to meet federal fuel economy standards and emissions regulations. They plan to increase PHEV sales from 2.4% to roughly 20% by 2030, matching California’s Advanced Clean Cars II rule. PHEV sales for Toyota, including Lexus, increased 39% last year.

PHEVs act as potential steppingstones to fully electric vehicles and have seen improvements in performance. Toyota plans to expand PHEVs across its lineup and increase the EV-only range. Sales forecasts vary, with PHEVs expected to make up 4-5% of US industry sales by 2030. Toyota’s 2025 RAV4 PHEV has 50 miles of EV range.

Consumer education on PHEVs has been a challenge, affecting sales. General Motors discontinued the Chevrolet Volt due to slow sales. Concerns about plugging in, cost, and the need for both EV technologies and an engine have impacted PHEV adoption. Toyota’s 2025 RAV4 PHEV costs $15,000 more than the base model.

Toyota expects hybrids, including PHEVs, to account for over 50% of US sales in 2025. Their “electrified” vehicle approach includes hybrids, PHEVs, and EVs. Once people understand PHEVs, there’s a significant shift in customer interest. PHEVs are seen as important for Toyota, attracting consumers who may not consider fully electric vehicles.



Read more at CNBC: Hybrid leader Toyota targets major growth in plug-in vehicles