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Toyota just hit a milestone: over 1 million electrified vehicles sold in the U.S. last year. That’s a record. But there’s a catch. Almost all of those sales were hybrids. Toyota’s only real EV, the bZ4X, sold just 18,570 units. Even adding the Lexus RZ’s 5,386 sales doesn’t move the needle much. Meanwhile, Tesla’s Model Y alone moved 372,613 units in North America and remains the most popular vehicle on the globe. So while Toyota’s hybrid strategy is winning big today, its future EV game still looks shaky.

Hybrid Toyotas are booming—EVs, not so much

Toyota’s hybrid sales are on fire. “2024 electrified vehicle sales of 1,006,461 – an all-time best ever – up 53.1 percent; represents 43.1 percent of total sales volume,” Toyota reported. The RAV4 Hybrid alone surged 29.3%, while the Tundra Hybrid jumped 22.1%.

But the bZ4X? Toyota claims it enjoyed a 99% increase in 2024—which sounds impressive until you realize that’s because it only sold 9,329 in 2023. And last year it was still behind not just Tesla’s crossover and sedan lineup but also the Ford Mustang Mach-E (51,745) and Hyundai Ioniq 5 (44,400). Even the Cybertruck (38,965) outsold it.

Still, Toyota isn’t backing down. “Our multi-pathway powertrain approach continues to attract customers, meeting their lifestyles and budgets,” said Jack Hollis, TMNA’s executive vice president.

Toyota’s hybrid strategy: playing the long game or falling behind?

Globally, Toyota’s electrified approach is paying off. The company just passed 6 million electrified vehicle sales in Europe and over 30 million worldwide since launching the Prius in 1997. But those numbers rely almost entirely on hybrids.

Toyota is working on the EV front—slowly. “Our teams are working with suppliers and dealers to prepare for a busy 2025,” Hollis said, adding that Toyota is launching 24 new models and starting battery production at its $13.9 billion North Carolina facility.

The company is also betting big on U.S. battery production. I previously wrote about how Toyota stepped in to save the Ultium battery factory in Michigan after GM bailed. That $1.5 billion investment suggests Toyota sees a growing need for American-made batteries.

Toyota just pulled off 1 million electrified sales in a year, a record. But its only real EV is still struggling. For now, Toyota is making money where it counts: hybrids.

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Staff Writer

Henry Cesari

Henry Cesari is a MotorBiscuit Staff Writer who brings his deep interest in vintage cars, trucks, and motorcycles to the site. Having restored his first classic car at just 16 years old, Henry has wrenched on everything from overland campers to Japanese motorcycles and even pre-war Bugattis. Henry is also an avid attendee at local car shows and genuinely enjoys connecting with fellow auto enthusiasts. Henry earned a Bachelor’s in Anthropology and English from the University of Vermont. While Henry is interested in vintage cars, he believes the golden age of cars is yet to come. He is confident journalists will play an important role in this revolution by exposing the industry as it is now and envisioning its possible future.