Toyota held a 58% share of the global hybrid vehicle market as of the end of 2025. Recently, Toyota Motor Corporation unveiled its core strategy for the coming years—going all-in on hybrid electric vehicles. According to the plan, by 2028, Toyota aims to increase the annual production of hybrid and plug-in hybrid electric vehicles to approximately 6.7 million units. This represents a significant 30% increase compared to the 2026 target of 5 million units. By then, hybrid models will account for about 60% of its estimated global total production of 11.3 million vehicles, solidifying their position as the absolute pillar of the business. This decision is based on a precise response to market realities. bZ3 In 2025, Toyota’s global sales (including Daihatsu, Hino, and Lexus) increased by 4.6% year-on-year to 11.3 million vehicles. Behind this achievement, hybrid models were a key driver, constituting a substantial 42% of global sales. In contrast, pure electric vehicles accounted for only 1.9%, with sales falling short of 200,000 units. Specifically in the Chinese market, Toyota’s sales in China surpassed 1.78 million units in 2025, showing a slight increase of 0.25% year-on-year. This made Toyota the only Japanese brand to achieve positive growth. Hybrid models contributed approximately 35% of these sales, forming the core sales support. In the U.S. market, Toyota’s sales grew by 8% to 2.51 million units, with hybrid models like the Camry being a primary growth driver. In its home market of Japan, the penetration rate of hybrid models reached as high as 50%. According to statistics from the market research firm GlobalData, as of the end of 2025, Toyota held a 58% share of the global hybrid electric vehicle market, far surpassing competitors like BYD. bZ7 Looking ahead to 2026, Toyota’s development trajectory is already quite clear. The company has set a target of exceeding 10 million units in global production to meet the soaring demand for hybrid models, particularly centered in the United States. Simultaneously, for the Chinese market, Toyota is intensifying efforts to promote its electrification transformation and localization adaptation. For instance, GAC Toyota’s most significant pure electric model, the bZ7, is set to launch in March, fully equipped with the Harmony cockpit system and Momenta’s intelligent driving system. Concurrently, the Highlander and Sienna will be updated to extended-range versions, incorporating the same intelligent configurations. GAC Toyota has set a goal for 2026 to achieve a new energy vehicle sales proportion exceeding 20%.