Why This American Best Selling Car Will Soon Only Come Hybrid

Last Updated 2 years ago

With ongoing increases in retail prices of gasoline, American consumers are looking for ways to save some money at the pump. The obvious solution? Fully electric and hybrid vehicles. And automakers are competing to fulfill this demand.

On Tuesday, November 12th, the Japanese automobile manufacturer Toyota revealed its plans to make its best-selling sedan, the Camry, only available in the Hybrid version as of 2025.

The 2025 Camry will feature a 2.5 liter gas engine paired with an electric drive that promises to have more power than the 2024 model, and of course, will be more efficient.

Credit: Toyota

This seems like a risky bet for Toyota since just looking at the sales of the Camry in 2023, about 85% correspond to the combustion model. But, is it risky at all?

Let’s dive into some of the reasons why Toyota’s decision makes sense and how it will benefit American customers.

Credit: Toyota

Toyota’s Strong Position in the Hybrid Segment

Toyota was the first automaker to launch a hybrid model in the United States in 2001 with the introduction of the Toyota Prius.

The Japanese automaker has decades of knowledge developing hybrid technology, which makes a statement to the American public about Toyota’s expertise in this topic.

The 2025 generation of the Camry will be available only in a gas-electric hybrid version. And Toyota assures that its powertrain delivers 232 horsepower, about 15% more than the mechanical all-wheel drive system.

Although their 4 and 6-cylinder combustion models made up 85% of the Camry sales this year as per David Christ, head of the Toyota brand in North America, sales of hybrid vehicles in the country have increased.

In 2021, the sales of Hybrid cars in the country increased by 76% (801,550 vehicles), representing 5% of the US light vehicle sales as per Reuters.

Credit: Kenny Leys on Unsplash

While sales of EVs also increased 83% (434,879), it only represented a mere 3% of the market.

Electric vehicles have the spotlight in the news. However, the truth is that there are still a considerable amount of American drivers who are hesitant about EV technology and prefer hybrid vehicles since they offer a technology that they are more familiar with.

Gas Savings: The Immediate Benefit to Consumers

The federal government is using regulations to force automotive manufacturers to increase the average mileage requirement for their fleets. Biden’s administration proposed a 58 mpg fuel economy standard for 2032.

In 2022, the average mpg was 27. For models 2024 to 2026, the average fleet fuel economy must be 49 mpg by 2026 based on the current law.

Credit: Michael Fousert on Unsplash

This is an effort to reduce air pollution and transition to zero-emission vehicles in the US. According to the National Highway Traffic Safety Administration, the proposal will reduce gasoline consumption in the US by 88 billion gallons by 2050.

Although this has an important impact on the environment, these policies will help American families and businesses save money on gas by having more efficient vehicles available in the market.

Credit: CHUTTERSNAP on Unsplash

According to Toyota’s website, the most affordable version of the gas-engine 2024 Camry costs $26,420 with 28 mpg in the city and 39 mpg in the highway, while the most affordable Hybrid version costs $28,855 offering 52 mpg combined.

There is a difference of only $2,400 between both versions, but the efficiency of the hybrid is 82% higher in the city than the gas version. A considerable difference that consumers will have to take into consideration.

The U.S. government fuel economy data reported that the hybrid saves $650 a year in gas compared with the combustion model. Those savings in gas will pay for the premium cost of the hybrid in only 3.7 years.

Hybrid Vehicles are More Affordable Than EVs

The top 3 competitors of the Toyota Camry in the electric and hybrid sedan category are:

• Honda Accord Hybrid 2024 – Starts at $32,545
• Hyundai Sonata Hybrid 2024 – Estimated price is $30,000
• 2024 Tesla Model 3 – Estimated price is $42,000

Credit: Charlie Deets on Unsplash

The most affordable version of the 2024 Toyota Camry Hybrid costs $28,855, making the Tesla Model 3 approximately $10,000 more expensive than the comparable hybrid options.

Gas Stations vs Charging Stations

Imagine this: You are driving from one state to another in an electric vehicle, and in the middle of the road you need to recharge your it, but the closest charging station is located in the next city. Scary?

Now imagine how many gas stations you think you can find before you reach the charging station. I bet you, the number would be more than one.

This is not surprising for anyone. The NACS (Association of Convenience and Fueling Retailing reported more than 145,000 gas stations active across the United States.

On the other hand, as of the time of this article, the U.S. has 59,699 public charging stations as reported by the U.S. Department of Energy. It means that for every 5 gas stations there are only 2 charging stations available in the country.

Credit: Rick Govic on Unsplash

For drivers who are hesitant about EVs due to driving range, hybrid vehicles offer them greater fuel economy performance than combustion-only vehicles without the main drawbacks of electric vehicles.

In summary, the Toyota Camry, the best-selling car in America will be available only in its hybrid version. While Toyota can describe this decision as risky, we believe that this is great news for American drivers due to the following:

• The most recent model of the Cambry hybrid is 82% more efficient in the city than the combustion engine model.
• Savings in gas estimated to be around $650 for the hybrid model compared to the gas-only version are worth considering.
• Hybrids are more affordable than Electric Vehicles
• The U.S. has developed an extensive infrastructure to supply gasoline across the country. Today, for every 2 charging stations for EVs, 5 gas stations can serve hybrids. This way driving a hybrid does not represent any limitation to enjoying long multistate road trips.