Where Toyota’s Electrification Stands Today
In recent years, Toyota has made a bold commitment to electrify its entire lineup, ensuring that every model—whether hybrid or fully electric—will be available by the end of 2025. This strategy is proving fruitful, as approximately 80 percent of Toyota and Lexus sales now consist of electrified vehicles, largely due to popular models like the Prius and Camry. Now, looking ahead, Toyota anticipates a significant surge in its electric vehicle (EV) sales in the U.S., projecting that they will double by 2030. This shift reflects a marked change from previous sentiments within the company, where some executives once considered the electric vehicle trend to be overhyped.
Toyota’s Current Sales Landscape
Toyota’s hybrid models are experiencing substantial growth, driven by an appealing redesign of the Prius and the launch of a fully electrified Camry range. Furthermore, the RAV4 is set to join the hybrid segment soon with an upcoming refresh. However, in the realm of fully electric vehicles, Toyota still has ground to cover. In the past year, the company managed to sell around 30,000 EVs in the U.S.—a stark contrast to their traditional gas-powered sales figures. Despite this, Toyota is optimistic about the future of EVs, with expectations that U.S. sales will experience significant growth over the next five years as the demand for electric alternatives increases. For reference, approximately 1.3 million EVs were sold in the U.S. in 2024, indicating a substantial potential market for expansion.
Upcoming Electric Models from Toyota
In response to the growing demand for electric vehicles, Toyota and Lexus are planning to introduce seven new fully electric models to the U.S. market by 2027. Currently, the Toyota bZ SUV, which has recently undergone a name change, and its counterpart, the Lexus RZ SUV, are part of the lineup moving forward. In the upcoming year, the company is set to unveil two more models: the bZ Woodland and the all-new C-HR EV. Looking toward 2027, consumers can anticipate an all-electric variant of the sleek Lexus ES along with two additional EVs that will be manufactured in the United States.
Strengthening U.S. Production Capabilities
To support this ambitious expansion of its electric vehicle lineup, Toyota is enhancing its production capabilities in the United States. The Georgetown plant in Kentucky will be responsible for one of the yet-to-be-announced electric models, while another will be produced in Princeton, Indiana. Additionally, the company’s battery manufacturing facility in Liberty, North Carolina, is preparing to produce up to 300,000 batteries for electric vehicles, hybrids, and plug-in hybrids.
Cooper Ericksen, Toyota’s senior vice president, shared insights in a Bloomberg interview, stating, "We’ll sell a little bit more every year and grow with the market. But we have to think about how many Canada will use, how many the U.S. will use, and we can then export to other global destinations." This statement highlights the company’s strategic focus not only on the domestic market but also on international sales, suggesting that the new EV models produced in the U.S. could eventually reach consumers around the world.
Conclusion
As Toyota navigates the evolving automotive landscape characterized by increasing electrification, the company remains steadfast in its commitment to transition its offerings. With its robust hybrid sales and an ambitious electric vehicle rollout plan, Toyota is positioning itself to meet the demands of an ever-expanding market. The combination of new model introductions and increased production capabilities signals the manufacturer’s intent to not only keep pace with the competition but to also lead in the realm of sustainable automotive solutions.
