While electric vehicle manufacturers go to war with each other over market capitalisation, Toyota is taking advantage of the gap in the market for hybrids.
Toyota pioneered the world’s first hybrid vehicle with the Prius, combining petrol and electric power in one vehicle. Electric vehicles are the future, but they are still pricey, and although sales are doing well, most drivers still prefer their gasoline-fuelled cars.
Toyota has long argued that the motor sector faces a slow transition from gasoline to partial electrification instead of a sudden switch to fully electric cars.
Die-hard gasoline-powered car drivers are more likely to try hybrids than switch to electric. Toyota Hybrid sales have increased by 50% in the last quarter of 2023 compared to the previous year, pushing net profit up by 86% to over $9.5 billion.
Toyota stock jumped 9% after reporting and has outstripped giants Tesla, General Motors, Ford, and Chinese hybrid specialist Li Auto in the past 12 months.
It is yet to be seen if Toyota’s coup succeeds as battery prices get cheaper yearly. Still, regardless, Toyota’s foresight into hybrid popularity has given the world’s largest vehicle manufacturer a definite boost.