Toyota is predicting plug-in hybrid cars will become more popular than electric cars as technological maturity boosts electric driving range to around 100km.
Toyota Australia will expand its plug-in hybrid offerings beyond just the 2026 RAV4, believing the technology has matured to a point where it makes sense for a large customer base.
Speaking to Drive, Toyota Australia Sales and Marketing boss Sean Hanley said, after studying the market, the all-electric driving range on offer by those older models would not have worked for local customers.
“It’s interesting for even Toyota to answer the question [why now for PHEVs?] because if you had asked me five years ago maybe, before COVID … ‘do I see plug-in hybrid as the future at that time?’,” Hanley said.
“My answer was no, I saw hybrid vehicles because they are convenient, there was no real change [in driver behaviour], fill up and go.
“And our experience with plug-in hybrids, Priuses – we had internally at that stage, not on the market in Australia – is that, when we gave them [staff] those cars, [they would] enthusiastically charge them for the first week and didn’t charge up thereafter.
“They reverted back to HEV [hybrid electric vehicle] because it was easy – remembering charging wasn’t quite as good six years ago either.
“What’s changed? Battery technology is better, EV-only plug-in hybrids are giving you fairly decent range – between 80 and 100km, generally speaking.”
Toyota Australia’s first official PHEV model is due to arrive next year in the form of the 2026 RAV4, which uses a 2.5-litre petrol engine and features a 22.7kWh battery.
Electric-only driving range is rated at 100km, while DC fast-charging capability means the new RAV4 PHEV can recoup 10-80 per cent of its battery in about 30 minutes.
Overseas, Toyota also fields a PHEV version of its C-HR small SUV, which uses 2.0-litre and 13.8kWh battery rated for 67km of electric-only range.
The current-generation Prius, which is not available in Australia, uses the same powertrain as the C-HR, but because of its lower and sleeker body style, is rated for up to 70km on electric-only power, according to Toyota.
The previous-generation Prius plug-in hybrid variant, which Toyota brought in for testing, offered only a 40km electric driving range rating from its 8.8kWh battery.
To the end of September this year, PHEV sales have jumped 143.7 per cent compared to the same period last in 2024 – partly due to a surge in interest due to the wind down of the fringe benefit tax (FBT) exemption in April.
Hanley predicted PHEVs will become a dominate powertrain technology in the near future, overtaking even battery electric vehicles (BEVs).
“I truly believe plug-in hybrids are going to accelerate above all in the next five years, it’s happening now but it’s going to get profoundly even more increased,” Hanley said.
“BEVs will increase within reason over that time as well, but PHEV will be the winner, BEVs – in terms of growth will be a close second – HEVs [hybrid electric vehicles] will continue to rise.
“I think people will move from HEV to PHEV, I think you will see that happen, so PHEV will overtake BEV over time.”
Tung Nguyen has been in the automotive journalism industry for over a decade, cutting his teeth at various publications before finding himself at Drive in 2024. With experience in news, feature, review, and advice writing, as well as video presentation skills, Tung is a do-it-all content creator. Tung’s love of cars first started as a child watching Transformers on Saturday mornings, as well as countless hours on PlayStation’s Gran Turismo, meaning his dream car is a Nissan GT-R, with a Liberty Walk widebody kit, of course.
