Toyota Motor Corporation expects 2026 to become a record year for its hybrid vehicle business, forecasting sales of more than 5 million hybrid electric vehicles (HEVs) worldwide. The automaker also outlined plans to introduce a new generation of hybrid batteries beginning in 2027 as it expands production capacity to meet growing demand.
Toyota Forecasts More Than 5 Million Hybrid Sales in 2026
In its first-quarter results for the 2027 fiscal year, Toyota said it expects to sell more than 5 million hybrid electric vehicles during the 2026 calendar year, which would mark the highest annual HEV sales in the company’s history.
Takanori Azuma, Toyota’s Chief Accounting Officer, said demand for HEVs remains strong and the share of hybrid vehicles continues to increase across many regions.
“Demand for HEVs remains strong, and the HEV mix continues to rise in many regions around the world. Toyota plans to sell more than 5 million HEVs for the first time in 2026. To steadily meet customer demand, we will continue to expand HEV battery production capacity,” Azuma said.
Next-Generation Hybrid Batteries Planned for 2027
Toyota also announced plans to begin rolling out its next-generation hybrid batteries in Japan starting in 2027. The company said the new batteries will deliver improved performance and greater cost competitiveness.
According to Toyota, battery production lines in Japan with capacity for approximately 600,000 hybrid vehicles will be converted to the next-generation batteries between 2027 and 2028.
“For example, in Japan, we plan to convert HEV battery production lines with capacity for approximately 600,000 vehicles to next-generation batteries offering enhanced performance and cost competitiveness between 2027 and 2028,” Azuma said.
Toyota Continues to Expand Its Hybrid Strategy
Toyota introduced the Prius in 1997 as the first mass-produced hybrid vehicle and has continued expanding hybrid technology across its lineup. In the United States, nearly the entire Toyota model range is available with hybrid powertrains, and hybrid variants have begun outselling their gasoline-powered counterparts.
While the company did not provide technical details about the upcoming battery technology, it said the next-generation batteries will improve HEV performance through battery advancements while also reducing costs through upgraded battery technology.
Hybrid Battery Production Set to Increase
Toyota said it expects hybrid vehicle sales to continue growing in the coming years and is considering further expansion of lithium-ion battery production for hybrid models.
The company indicated that the planned increase in battery production is expected to continue through at least the end of the decade, supporting future demand for its expanding hybrid vehicle lineup.
