Toyota's Profitable Pivot: Embracing Hybrids for Financial Success

Vantage Market Research

May 02, 2024

As rival automakers quickly ramp up their production of electric cars, Toyota is sticking with its plug-in hybrid vehicle deployment in the UK and around the world. The company has remained their business in the production of hybrid technologies instead gaining focus on EV field like other key players. The company bring hybrids to a large number of audiences by introducing their contribution to the technology's success. 

The profound transformations occurring within the automotive industry is the major reason for company's recent surge in hybrid technologies. The company introduces advancement in microchips, software, and electric vehicles. This in turn reshape a dynamic industry where various other manufacturers faced disruptions.

As a Japanese corporation, Toyota holds the world's largest automaker, having sold over 11 million vehicles in 2023, a figure surpassing Tesla’s sale by more than sixfold. Toyota's ascent in the industry has been gradual over the course of half a century, commencing with the exportation of small cars to the United States. 

Subsequently, the company expanded its operations by constructing factories across the Southern and Midwestern regions, introducing a luxury brand, and venturing into segments previously dominated by its Michigan-based competitors, such as full-size pickup trucks.

Toyota provides over twenty-four hybrid or plug-in hybrid models, comprising nearly 30 percent of its total sales, a significantly higher proportion compared to most other automakers. In the U.S. market alone last year, Toyota achieved sales of 2.2 million vehicles.

During January and February, Toyota experienced a 20 percent increase in its U.S. sales, driven by a remarkable 83 percent surge in sales of its hybrid and plug-in models. Over the nine-month period beginning last April, Toyota amassed a profit of $27 billion, approximately twice the earnings from the corresponding period in the previous year. In contrast, Tesla's profits in 2023 reached $15 billion, reflecting a 19 percent rise compared to 2022.

In parallel, market analysts at Vantage Market Research foresee exponential growth in the Hybrid Car Market, driven by the enactment of stringent emission & fuel economy norms and government incentives for promoting the purchase & adoption of hybrid cars. The global hybrid car market is valued at USD 230.4 Billion in 2023 and is projected to reach a value of USD 598.4 Billion by 2032 at a CAGR (Compound Annual Growth Rate) of 11.2% between 2024 and 2032. 

Hybrid Car Market Size, Share & Trends Analysis Report by Electric Powertrain Type (Series Hybrid, Parallel Hybrid, Combined Hybrid) by Component Type (Battery, Electric Motor, Transmission) by Propulsion (HEV, PHEV, NGV) by Degree of Hybridization (Fully hybrid, Mild hybrid, Plug-in-Hybrid) by Vehicle Type (Hatchback, Sedan, Compact SUV, SUV) by Region (North America, Europe, Asia Pacific, Latin America, Middle East & Africa) - Global Industry Assessment (2018 - 2023) & Forecast (2024 - 2032)