Toyota’s Electrified Vehicles Are Taking Over: Almost Half of All Sales Now Include an Electric Motor

Toyota’s bet on hybrids is paying off in a big way. The Japanese automaker wrapped up 2024 with record numbers that caught even industry experts off guard. While other car companies scrambled to figure out their electric vehicle strategies, Toyota quietly built an electrified empire that’s now dominating showroom floors across America.

• Toyota sold over 1 million electrified vehicles in 2024, representing 43.1 percent of total sales volume.
• In September 2024, electrified vehicle sales reached 48.4 percent of total sales volume, totaling 78,683 units.
• Toyota announced that more than half of its U.S. sales will be electrified models for 2025, up from 43 percent in 2024.

Breaking Records Left and Right

Toyota Motor North America reported year-end 2024 U.S. sales of 2,332,623 vehicles, an increase of 3.7 percent compared to 2023. But here’s what really matters: what type of cars people are buying.

Electrified vehicle sales surged 53.1 percent from the previous year, with electrified vehicles now accounting for 43.1 percent of total sales volume. Walk into any Toyota Dealer today, and you’ll see the shift happening in real time.

Toyota’s top-selling electrified model year-to-date is the RAV4 Hybrid, with 152,328 sold, followed by the Camry Hybrid with some 122,000 sales. Making the Camry exclusively hybrid was a bold move, but with demand this strong, it makes sense.

The Multi-Pathway Strategy That’s Actually Working

Here’s where Toyota separated itself from the pack. While other automakers went all-in on fully electric vehicles, Toyota took a different approach. Toyota has stuck to a wait-and-see strategy for full EVs, believing electric cars won’t make up as large a portion of the global car market as some rivals predicted, so it invested much more heavily into hybrids and PHEVs.

Jack Hollis, executive vice president and chief operating officer at TMNA, said their multi-pathway powertrain approach continues to attract customers, meeting their lifestyles and budgets. They’re giving buyers choices instead of forcing everyone down one path.

Toyota offers 30 total electrified vehicles currently available in dealerships between both the Toyota and Lexus brands, the most among any automaker. These include hybrids, plug-in hybrids, battery electric vehicles, and even hydrogen fuel cell options.

What “Electrified” Actually Means

When Toyota talks about electrified vehicles, they’re casting a pretty wide net. This term encompasses hybrids, plug-in hybrids, full EVs and hydrogen fuel cell cars, though for Toyota it mostly means hybrids and plug-in hybrids as its electric and hydrogen vehicle sales aren’t nearly as significant.

Toyota plans to increase PHEVs from 2.4 percent of its U.S. sales volume last year to roughly 20 percent by 2030. That’s a massive jump, and it shows where the company thinks the sweet spot is for buyers who want electric capability without the range anxiety.

RAV4 Prime leads the PHEV lineup at 24,580 units. Meanwhile, sales of Toyota’s two full EVs totaled 21,958 so far this year, more than double the number sold during the same period in 2023. EVs are growing, but hybrids are absolutely crushing it.

Why This Approach Wins

Toyota’s strategy makes sense when you look at what buyers actually want right now. As growth in the EV market has slowed in the last year and hybrid interest has taken off, Toyota’s executives have taken something of a victory lap. They stuck to their guns when everyone else was chasing pure EV sales, and it’s working.

Hybrids give you better fuel economy without the charging infrastructure worries. You can fill up at any gas station, but you’re still getting efficiency that crushes traditional gas-only vehicles. Plus, with 30 different electrified models to choose from, there’s something for everyone whether you need a compact car, a family SUV, or a full-size truck.

Looking ahead, Toyota is investing $912 million over the next five years in its U.S. manufacturing operations to boost hybrid vehicle production, which will add over 250 new jobs. They’re also starting battery production at their new $13.9 billion North Carolina facility to meet future demands.

Should You Go Hybrid in 2025?

Numbers tell a clear story. Toyota went from having electrified vehicles make up 29 percent of U.S. sales in 2023 to 43 percent in 2024, and they’re projecting more than half for 2025. That’s rapid change in how people buy cars.

According to Toyota’s vice president and general manager for North America David Christ, hybrid car sales alone will amount to 50 percent of sales in North America this year. That doesn’t even include the plug-in hybrids and EVs. If you’re shopping for a new car, the hybrid option probably deserves a serious look. With Toyota’s track record on reliability and resale value, plus the fuel savings, it’s hard to argue against considering an electrified model for your next purchase.