Toyota Eyes 20% Plug-in Hybrid Sales Growth in US Market, Shares Fall 2% to $182.89

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Toyota Targets 20% PHEV Sales in US by 2030

In a major push toward electrification, Toyota Motor is planning to dramatically increase the share of plug-in hybrid electric vehicles (PHEVs) in its US lineup. According to company sources that spoke with CNBC, PHEVs will make up 20% of Toyota’s US vehicle sales by the end of the decade should its current plans come to fruition. This would mark a sharp rise from the 2.4% recorded in 2025.

This strategic shift represents Toyota’s renewed focus on the PHEV vehicle format it began introducing in 2016, which combines electric driving capability with an internal combustion engine for extended range. The expansion plans are not set in stone, however, as the final trajectory may be influenced by regulatory developments and how receptive customers are to electrified alternatives.

Following the news, Toyota’s US-listed shares suffered a decline in value during pre-market hours. The stock price fell by 2% and hit $182.89, contrasting yesterday’s close at $186.68.

PHEVs as a Bridge in the EV Transition

David Christ, head of the Toyota brand in North America, recently stated that the company intended to expand its PHEV volume across the lineup over the next few years. “We love the PHEV powertrain,” he added, noting that the company was continuously working to improve the amount of miles one can cover with EV technology. Christ also referred to PHEVs as a “bridge” solution for drivers wary of switching directly to battery electric vehicles.

Across the sector, industry research firms anticipate moderate growth in PHEV adoption over the next few years. S&P Global Mobility forecasts that the US PHEV market share will reach 5% by 2030, up from around 2% last year. AutoPacific’s projections are similar, as it estimates that PHEVs will account for 4.2% of sales. AutoForecast Solutions, meanwhile, sees the market share reaching 3.3%.