Toyota, a pioneer in hybrid powertrains, is strategically doubling down on combustion engines with electrical assistance to tackle regulatory challenges while still developing battery-electric vehicles (BEVs) and green fuels. Despite the industry's shift towards BEVs, Toyota's chairman, Akio Toyoda, believes that EVs will only account for up to 30% of global sales, advocating for a 'multi-pathway' approach including hybrids, hydrogen vehicles, EVs, and green fuels. The focus on hybrids is evident with the upcoming 2026 RAV4 transitioning to a hybrid-only model, following the successful hybrid-exclusive Camry. Toyota is contemplating converting its entire lineup to hybrid-only models, with potential candidates like the RAV4. This strategic move aligns with the brand's goal to save on regulatory fines and costs, providing extra time for BEV development. The shift towards plug-in hybrids is also seen as a beneficial move to leverage U.S. emissions regulations. Furthermore, Toyota's North Carolina battery plant is planned to significantly enhance its battery production, aiming for 30 gigawatt-hours annually by 2030.