Hybrid attack: Toyota to upgrade batteries to maintain leadership
The world's leading hybrid vehicle manufacturer does not want to lose its edge: it will launch advanced batteries that will offer improved electric range and reduced weight. Here is what we know about them.
Toyota is planning a comprehensive upgrade for its hybrids, which constitute the bulk of the Japanese brand's sales — the largest in the world not only in general sales but also in the hybrid sector. Toyota does not want to lose its relative advantage: in the next two years, it intends to upgrade the batteries for all models. According to a report by Automotive News, at least 600,000 vehicles worldwide will benefit from improved battery technology in 2027 and 2028.
As of the first half of 2026, hybrids already account for more than half of all Toyota sales worldwide. The manufacturer expects them to exceed the sales threshold of 5 million units per year starting from the current year, making Toyota the first manufacturer in the world to sell such a quantity in a single year.
Recall that the Japanese manufacturer was the first in the world — with the first generation Prius — to offer the technology in a mass-market production vehicle. Since then, there have been several generations of Prius, but the technology has spread and is currently offered in the vast majority of the manufacturer's models. In fact, some models in Israel are currently offered only with a powertrain combining gasoline and electricity, without "pure" gasoline versions.
Toyota has not yet revealed full details about the new battery technology, but promises a "gradual transition from nickel to lithium," meaning a shift from old nickel-metal hydride technology to lithium-ion. These lighter batteries with improved energy density allow for more interior space and improved electric driving ranges, alongside even lower gasoline consumption.
The new battery technology will also be used by Toyota in fully electric models, such as the bZ4X, which is also marketed in Israel. According to the manufacturer's estimates, these will allow for driving ranges of up to 800 km and cost savings of 20% compared to existing technology.
In addition, the manufacturer is currently working on bipolar lithium-ion batteries, which are expected to allow for a driving range of up to 1,000 km between charges. These are expected to reach the market in the next two years and will offer an additional 10% savings in production costs compared to the intermediate generation expected later this year or in early 2027.
Toyota hopes that the implementation of improved battery technologies will allow it to curb the decline in sales recorded this year. Toyota reported 2.55 million deliveries in April-June, a decrease of 3.5% from the same quarter last year. However, sales of electrified vehicles — including hybrids and electrics — jumped by 12% to 1.41 million, representing 55% of total global sales.
Sales of hybrid models rose by almost 7% to 1.24 million units, while fully electric vehicles more than doubled their delivery volume to 114,000 units.
It was also reported by the manufacturer that, unlike at the beginning of the US-Israel war against Iran, shipping and logistics costs have returned to normal levels. "Initially, because we could not cross through the Strait of Hormuz, we had to go around via the Cape of Good Hope in South Africa to ship to the Middle East, which doubled logistics costs and shipping time," explained the manufacturer's Chief Financial Officer, Takanori Azuma. "Now we are examining several logistics routes, such as unloading cars before the Strait of Hormuz and transporting them by land."
Toyota expects that in the fiscal year ending March 31, 2027, it will manage to sell 9.7 million cars. This is a slight growth compared to the previous forecast of 9.6 million cars, a number that was also recorded in the past fiscal year.
