Transportation

Hybrids Delivering Cash Chest for Toyota, Honda’s EV Ambitions

  • Decelerating EV vehicle demand replaced by interest in hybrids
  • Carmakers shift efforts toward making more gas-electric cars

A Toyota Motor Corp. Prius plug-in hybrid electric vehicle. Hybrid sales jumped 32% to 3.59 million units, accounting for one out of every three cars Toyota sells.

Photographer: Nicholas Takahashi/Bloomberg
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When Toyota Motor Corp. introduced the world’s first hybrid gasoline-electric vehicle in 1997, it made a loss on every Prius it sold. Decades later, booming sales in the category are delivering a much welcome cash boost.

The world’s largest auto manufacturer recently reported annual operating profit of ¥5 trillion ($32 billion), the first time any Japanese company reached that threshold, with an industry-topping margin of 11.9%. Hybrid sales jumped 32% to 3.59 million units, accounting for one out of every three cars Toyota sells.