Toyota’s Lead Going Into 2026
Heading into 2026, Toyota is in a stronger spot than it is used to. The brand closed out 2025 as America’s top-selling automaker and kept its global lead as well. That consistency comes down to Toyota’s early and ongoing commitment to hybrids – a move the company treats as a foundation, not just a stopgap on the way to full electrics.
With EV incentives in flux and buyers growing wary, Toyota’s hybrid-heavy lineup gave Americans a practical alternative. Shoppers who wanted better mileage but didn’t want to worry about charging found what they needed in Toyota showrooms. That helped the brand keep sales climbing as the rest of the market slowed.
And that’s not just for America. Hybrids are a key part of Toyota’s global toolkit, able to fit into markets with different rules, infrastructure, and buyer habits. A recent Nikkei Asia report, citing unnamed individuals familiar with the automaker’s plans, sheds more light on how far Toyota is willing to push hybrids over the next few years – and just how big a role the US will play.
6.8 Million Hybrids Produced by 2028
The report says Toyota aims to boost hybrid production by about 30% by 2028, compared to today. That means around 6.7 million hybrids and plug-in hybrids a year, up from a planned 5 million in 2026. For context, Toyota’s total vehicle output is only set to grow by about 10% in that time, so hybrids are clearly taking center stage.
If those targets are met, hybrids would rise from about half of Toyota’s global output today to around 60% of the 11.3 million vehicles the company expects to build in 2028. This shift comes as governments in the US and Europe reduce or roll back incentives that once made EVs more affordable.
Toyota already owns about 58% of the global hybrid market, and outside forecasts say demand for hybrids and plug-in hybrids is still on the rise. Even as EV sales continue to grow, hybrids are increasingly seen as the safe bet for automakers trying to navigate shifting policies and buyer sentiment.
US Manufacturing Matters More Than Ever
A big chunk of Toyota’s next hybrid push is happening in the US. The company is investing 1.5 trillion yen in its American operations over five years, starting with new investments in hybrid engines and parts across five plants. Hybrid models are already pulling their weight, helping Toyota notch an 8% sales gain in the US last year.
Beyond parts production, Toyota is also expanding its American hybrid assembly footprint. It’s growing its US hybrid assembly, with a hybrid Corolla set to roll out of Mississippi after 2028. With Toyota’s lineup growing, hybrid is becoming the standard, not just an option.
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