In a sign that the conflict in Ukraine and rising gas prices may be pushing Americans toward electrified vehicles, Toyota said it’s seeing rising interest in its hybrids.
“We are seeing a much higher inquiry on everything electrified,” Toyota North America vice president of sales Bob Carter said. “Our hybrids, our plug-in hybrids, interest in the bZ4X that will begin wholesaling in late May, is through the roof.”
Carter told members of the media Wednesday that inquiries for hybrid vehicles have sharply increased on Toyota.com and Lexus.com. The increase in interest, however, hasn’t shown in first-quarter sales numbers because supply chain bottlenecks continue to hamper the production of new vehicles, he said.
Dealership inventory is so thin that vehicles are being sold in the U.S. before they’re even built.
“If we built cars with three wheels, there would probably be a consumer waiting for it,” Carter joked.
The company’s first true battery electric vehicle, the bZ4X, will reach dealer lots in the coming months. Toyota has taken a different approach to electrification compared with other U.S. automakers The company is leaning on its lineup of hybrid vehicles and introducing fully electric cars more gradually as infrastructure for plug-ins is built out around the country.
Ultimately, Toyota plans to invest $35 billion in electric vehicles and roll out 30 models by the end of the current decade.
In the near term, Toyota believes its lineup puts it at an advantage as American consumers transition from combustion engine vehicles to electric.
“The only thing we can debate is: How long is this transition period?” Carter said. “And quite frankly, I think we’re so well positioned because we’re the only [manufacturer] that has hybrid plug-ins and hybrids as a core volume powertrain.”
Toyota bested General Motors last year as the top-selling automaker in the U.S. The Detroit automaker had held the title since 1931.
But the company doesn’t expect to hold the title for much longer than supply chain issues are ironed out.
“It’s not sustainable,” Carter said, pointing to Toyota’s history of performing better in crises and its ability to cut through supply chain problems better than some of its peers.
“As supply chains open up, you can expect a mild decline in our market share.”
The company, which has its North American headquarters in Plano, said it is raising wages for workers in its assembly plants in response to pay increases across the industry.
Toyota plans to roll out 21 new vehicle models in 2022. It’s also making progress on the autonomous vehicle front, saying the technology is “very close.”
The company has partnered with self-driving vehicle tech startup Aurora to test autonomous Toyota Siennas in the North Texas region.
Carter said he rode in one of the Siennas from the Plano headquarters to DFW Airport recently with zero intervention from the safety driver behind the wheel.
“It was a fantastic experience,” he said.
