Toyota to Eliminate Gasoline Cars in North America... Will It Become the First Company to End Internal Combustion Engine Vehicles?

Applied to all Camry models
Limited charging infrastructure situation

Japanese automaker Toyota has reportedly internally established a plan to convert all vehicle models sold in the North American region to hybrids. This means they will no longer release internal combustion engine models, and if the plan is realized, Toyota is expected to become the first company to eliminate cars powered solely by gasoline.

According to major foreign media on the 16th, Toyota intends to make its North American sales lineup entirely hybrid. The Camry's model year change (2025 model) already sells only hybrid models in North America. Popular models like the Land Cruiser and Sienna are also available only as hybrids. The RAV4, which ranks high in local sport utility vehicle (SUV) sales, is likely to adopt a similar sales approach from next year. Currently, about half of Toyota's sales volume in North America consists of hybrid models.

Toyota's flagship sedan Camry Hybrid exhibited at last year's LA Auto Show [Photo by Yonhap News]

This strategic shift is analyzed to be related to hybrids emerging as the mainstream in the market. Hybrids were once considered a transitional technology before the era of pure electric vehicles, but recently, as electric vehicle demand has slowed, hybrids have gained attention as an alternative. Battery fires have also contributed to this trend.

With hybrid models leading the way, Toyota has become the top-selling automaker in the United States this year. In 2022 and 2023, General Motors (GM) held the number one spot. The U.S. has somewhat eased its carbon emission reduction plans from the original schedule, citing reasons such as job losses.

Juan Sakoto, Vice President of S&P Global, which consults on biofuels and other areas, recently commented on the characteristics of the North American automotive market: "The Toyota Camry remains one of the best-selling sedans in the U.S., but greater growth is expected after next year," adding, "Electric vehicle demand has slowed, but the number of people seeking hybrids continues to steadily increase."

Since automobiles are considered essential goods and charging infrastructure is still insufficient except in some major metropolitan areas, the number of consumers choosing pure electric vehicles at this point is inevitably limited.