Politics Aside, Toyota Committed to Electrification

Toyota plans to continue expanding its offerings of battery-electric and hybrid vehicles while moving away from larger-displacement V-6 and V-8 internal-combustion engines for its body-on-frame vehicles, says a Toyota Motor North America (TMNA) executive.

David Christ, TMNA Group vice president and Toyota Div. general manager, says during a discussion with members of Detroit’s Automotive Press Assn. that the automaker is committed to an electrification strategy that it will pursue regardless of the changes in the political landscape dictated by Republican President-elect Donald Trump.

Despite repeated attacks by Trump and his running mate J.D. Vance on the shift toward BEVs, the auto industry depends on long-term planning, Christ notes. It can take six years to plan, produce and replace new vehicles and powertrains take even longer to develop, he says. 

Christ says Toyota is building a $14 billion plant in Liberty, NC, to supply batteries for both BEVs and plug-in hybrid-electric vehicles. “You can bet if we’re spending that kind of money, we are going to find vehicles to put them in,” he says. “The investments can’t be undone in four years.”

One of the new vehicles under consideration is a 3-row, battery-electric SUV that could be ready in 2026.

Meanwhile, Christ says early sales of the 3-row Grand Highlander are promising. The SUV is available with a regular ICE, hybrid and a performance-oriented Hybrid Max, featuring a turbocharged, 2.4L and a 58-kW electric motor. The Grand Highlander’s popularity is curtailing sales of regular Highlander with two rows of seats, he says.

The new Toyota 4Runner, launching in early 2025, is an updated addition to Toyota’s family of body-on-frame products, which includes the Tacoma and Tundra pickups as well as the Sequoia and Land Cruiser SUVs, says Christ.

The body-on-frame vehicles, including hybrid versions, have been engineered to accommodate the “spirit of adventure” that appeals to contemporary buyers, according to Christ. The engineering and improvements in the hybrids make them more powerful, more responsive and more fun to drive, Christ notes.

Toyota also has brought down the prices of its hybrid models, making them more affordable, and the hybrid version of the RAV4 is enormously popular, Christ says. Electrified vehicles account for more than 50% of TMNA's sales in the U.S., up from a little over 30% a year ago, and that percentage is expected to continue growing, he says.

As it adds more plug-in hybrids to its model line, Toyota is looking at improving their electric-only range to 45 miles (72 km), which covers the “around-town” driving most owners do as the average daily commute in the U.S. is 37 miles (60 km). ICE power for longer trips.

Christ indicates Toyota is not preparing to build an extended-range electric vehicle where the ICE engine acts as a generator that keeps the battery pack charged.

Toyota has not given up on passenger cars. As they comprise 25% of the new vehicles sold in the U.S., passenger cars are still a promising market, Christ says.

The Crown sedan, which has replaced the Avalon in Toyota’s North American lineup, has been a success in other parts of the world but is just getting established in the U.S., he says. “It is hard to establish a new nameplate,” Christ notes, adding Toyota has introduced an SUV version of the Crown – the 2025 Crown Signia (pictured, below), which is now on sale.

Toyota will be the top-selling brand in the U.S. in 2024, and TMNA is continuing to stress affordability, which is critical to attracting new customers, the executive says.