Registration volume of hybrid passenger vehicles in Japan in 2024, by manufacturer

In 2024, Toyota recorded roughly 844,270 newly registered hybrid passenger electric vehicles (HEV) in Japan. HEVs constituted the clear majority of Toyota’s new vehicle registrations in the Japanese automobile market, more than double the number of new registrations of its gasoline-powered vehicles.

The domestic HEV market is dominated by Toyota

Toyota has been the leading automobile manufacturer in Japan for decades and was the first company worldwide to introduce a hybrid electric vehicle model, the Toyota Prius, for commercial large-scale sale in their portfolio. With the recent global trend toward the electrification of automobiles, Toyota’s hybrid electric vehicle sales received a tailwind, especially in the domestic market. In 2024, Toyota sold more HEVs in Japan than all other competition combined. Considering that HEVs comprise over 60 percent of new car registrations in the domestic market, Toyota continues to secure its position as the dominant Japanese automobile company. 

Japan’s HEV market boom

Japan’s automobile market is witnessing a paradigm shift away from cars running on conventional combustion methods toward electrified vehicles. However, the strategy of Japan’s large automobile players regarding the new challenge of electrification was decidedly different from the rest of the world, which heavily invested in battery electric vehicles (BEVs). Japanese manufacturers paid respect to domestic consumer sentiments and to the corresponding market demand. Japanese customers were reluctant to accept fully electrified cars, preferring instead HEVs. Consequently, Japan’s electric vehicle market continues to be heavily slanted in favor of HEVs, while other types of next-generation vehicles, such as BEVs, fuel-cell battery vehicles, or plug-in hybrid electric vehicles, remain insignificant.