Toyota Motor Corp. confirmed plans to expand hybrid vehicle production capacity at its Kentucky and Indiana plants, citing sustained demand for fuel-efficient models across the U.S. market. The company said hybrids now account for a growing share of its total North American sales, driven by consumer concerns about fuel prices and charging infrastructure limitations for full EVs.

Executives noted that hybrid expansion aligns with Toyota’s “multi-pathway” electrification strategy, balancing battery EV investment with hybrid and plug-in hybrid offerings. Suppliers have been advised to prepare for higher output volumes through 2026 as Toyota seeks to maintain its leadership position in electrified vehicles.