Toyota announced a plan to raise annual production of hybrid and plug‑in hybrid vehicles to about 6.7 million units by 2028, a 30 % jump from the 5 million‑unit target for 2026. The figures were reported by the Nikkei business daily and are described by Toyota as rough estimates shared with suppliers for planning purposes.
The move is part of Toyota’s multi‑pathway electrification strategy, which balances hybrid growth with investment in future software‑defined vehicle technologies. By expanding hybrid output, Toyota aims to capture a larger share of the global hybrid market, where hybrids already account for roughly 60 % of its production in 2028 versus 50 % in 2026.
Toyota also plans to lift overall global vehicle output to about 11.3 million units by 2028, roughly 10 % above its 2026 plan. The company is investing $10 billion in U.S. operations over five years to support the increased hybrid production, targeting key models such as the Camry Hybrid and Tacoma Hybrid.
The strategy reflects Toyota’s cautious stance toward battery‑electric vehicles amid supply‑chain constraints, charging‑infrastructure gaps, and declining EV incentives in the U.S. and EU. By focusing on hybrids, Toyota can meet growing consumer demand for electrified vehicles while mitigating battery‑cost volatility and infrastructure uncertainty.
Market reaction to the announcement was positive, with Toyota’s shares rising 3 % in pre‑market trading on February 4, 2026. Analysts noted that the hybrid production target signals confidence in the company’s ability to maintain profitability through production efficiencies and a strong supply‑chain advantage.
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