Toyota Mulls Expansion of U.S. Truck Lineup to Include Electric and Hybrid Models

Toyota Motor Evaluating Expansion of U.S. Truck Lineup

Toyota Motor is currently evaluating the possibility of expanding its U.S. truck lineup to include all-electric or plug-in hybrid electric versions of its Tacoma and Tundra pickups. Jack Hollis, executive vice president of Toyota Motor North America, disclosed that the Japanese automaker is considering various options based on anticipated customer demand and the tightening of federal emissions and fuel economy regulations.

Assessment of Truck Footprint

Hollis expressed his belief in the potential for growth within the entire truck footprint. He emphasized the importance of understanding customer preferences and mentioned the possibility of introducing compact models or other variations to meet market demands. Toyota has previously explored the concept of a broad lineup of battery-electric vehicles (BEVs), including a midsize pickup model similar to the Tacoma, and is now considering the potential for plug-in hybrid vehicles (PHEVs).

Investment and Production Plans

Earlier this year, Toyota announced a $1.3 billion investment in a Kentucky plant to manufacture a new all-electric, three-row SUV specifically designed for the U.S. market. Additionally, the company's Thailand division confirmed plans to produce a BEV version of its small Hilux pickup for global markets. Hollis expressed enthusiasm for the electric Hilux but refrained from speculating on its potential availability in the U.S.

Furthermore, he confirmed that Toyota is actively exploring the development of both BEV and PHEV versions of the Tacoma and full-size Tundra. The most recent redesigns for the Tundra and Tacoma occurred in the 2022 and 2021 model years, respectively.

Consideration of Electric and Hybrid Options

Hollis emphasized that the company is currently evaluating the practicality of both BEVs and PHEVs for its truck models, taking into account the unique characteristics of each vehicle, including the 4Runner and Sequoia SUVs. The assessment aims to determine the optimal mix of electric and hybrid technologies for the lineup.

Market Landscape

The current market features five all-electric pickup trucks available for purchase in the U.S. However, these models are positioned more as luxury vehicles rather than mass-market options, with prices ranging from $50,000 to well over $100,000. Despite the initial rush to introduce all-electric pickups, sales have tapered off in recent times.

Unlike the all-electric segment, there are currently no plug-in hybrid electric pickups on sale in the U.S. Stellantis' Ram brand is anticipated to launch an "extended-range" plug-in vehicle equipped with an electric generator powering an engine later this year.

Industry Response and Regulatory Impact

Toyota, along with several other automakers, is reevaluating its product portfolio in response to the slower-than-expected adoption of electric vehicles. This reassessment is also influenced by the Biden administration's revised emissions rules, which seek to more comprehensively account for hybrid and plug-in hybrid electric vehicles in the automotive landscape.

In a similar vein, José Muñoz, Hyundai president and global chief operating officer, stated that the company is reassessing its plans to exclusively produce all-electric vehicles at a new plant under construction in Georgia. Acknowledging market dynamics and regulatory requirements, Muñoz emphasized the need for flexibility and alignment with evolving demand.

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