Toyota's massive hybrid pledge: 30 per cent production boost for popular fuel-saving hybrid vehicles like the 2026 Toyota RAV4, Camry, Corolla, Kluger and more as incentives for electric cars are being slashed around the world - report

Toyota is reportedly set to boost production of vehicles with its popular hybrid powertrain technology by around 30 per cent in the next two years.

As reported by Nikkei Asia, the Japanese carmaker expects to produce 6.7 million hybrid vehicles globally in 2028. This is up from the planned five million hybrid and plug-in hybrid (PHEV) cars it expects to produce in 2026.

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Nikkei Asia reports a key driver of this boost in hybrid vehicle production will come from the US as people are moving away from electric vehicles (EVs) due to subsidies and incentives being cut.

In November 2025, Toyota announced its plans to invest 1.5 trillion yen (~A$13.86 billion) in the US over the next five years.

It will initially spend 140 billion yen (~A$1.29 billion) to produce hybrid powertrains and components at five of its US facilities.

According to GlobalData as reported by Nikkei Asia, Toyota currently holds a 58 per cent share of the global hybrid vehicle market as of the end of 2025.

Toyota is far from the only carmaker that is ramping up and adjusting its strategy in response to falling EV demand in certain markets. Examples include Ford, General Motors, Hyundai and even Volkswagen, among others.

In Australia hybrid vehicles accounted for 16.5 per cent of overall new vehicle sales during 2025, as reported by VFACTS. This is up 15.3 per cent year-on-year.

Toyota has long been the top-selling hybrid brand in Australia and was one of the first to market with its Prius hatchback that launched locally in 2001.

Many Toyota vehicles, including the C-HR, Camry, Corolla, Corolla Cross, Kluger, RAV4, Yaris, Yaris Cross and the Tundra are exclusively offered with hybrid powertrains in Australia.

Lots of other brands are reacting though to growing hybrid vehicle interest and are offering more options. Examples include GWM, Hyundai, Kia, Nissan and Subaru.

There has also been meteoric growth in PHEV sales in Australia. Last year a total of 53,484 examples were sold, which was up 130.9 per cent year-on-year.

Toyota is set to dive into this segment in Australia during 2026 with the forthcoming PHEV version of its new-generation RAV4. It’s set to arrive in the third quarter of 2026 after the regular hybrid versions.