Toyota’s bold strategy to double down on hybrid vehicles is beginning to pay off, despite Tesla CEO Elon Musk dismissing them as a temporary “phase” and expressing a desire to shift away from them. The Wall Street Journal has reported a 48% surge in hybrid vehicle sales in 2023 over the first three quarters of the year compared to a year ago, demonstrating a surging demand in the market.
Head of sales for Toyota’s North American business, David Christ, stated that Toyota’s production of hybrids that combine gasoline engines with electric motors is at its peak in response to the hot market. Meanwhile, the demand for electric vehicles has cooled off, with a significant slowdown in the pace of growth. This trend has led major carmakers like GM and Ford to reevaluate their investments in electric vehicle production.
Tesla also reported lower earnings in its third quarter, and CEO Elon Musk emphasized the need to make cars more affordable. Additionally, Ford registered a significant increase in hybrid sales while expressing a desire to quadruple them in the next five years. This development has left Toyota’s chairman, Akio Toyoda, who has long been a skeptic of the hype surrounding electric vehicles, feeling vindicated in his belief that the industry should continue to invest in hybrids and hydrogen-powered cars as an alternative.
This surprising turn of events has exceeded the previous expectations. To stay informed about the impact of AI on the future of business, subscribe to the Eye on AI newsletter. Subscribe for free today.
