Toyota is riding a sales wave that’s almost too hot to handle. The Japanese automotive giant is facing what CFO Kenta Kon described as “very strong demand” across key markets, to the point where the company can barely meet orders. After a record first half of fiscal 2026 that saw Toyota and its luxury Lexus brand sell a combined 5.27 million vehicles a 5% jump compared to the prior year demand shows little sign of slowing down.
The engine behind this growth? Hybrids. Toyota sold a staggering 2.27 million hybrids in just the first six months, with electrified vehicles (including battery EVs, plug-in hybrids, and fuel-cell models) making up 47% of all sales. Vehicles like the best-selling RAV4, now boosted by Toyota’s cutting-edge software-defined platform Arene, are carrying the brand’s momentum forward, especially in competitive markets like North America and China.
Production has ramped up accordingly, with September’s global output hitting over 918,000 vehicles a surge driven largely by a 29% increase in U.S. production. But tariffs and supply chain hiccups continue to bite, leading to increased costs and the delicate balancing act of keeping prices in check while preserving customer loyalty.
Despite these challenges, Toyota has upped its operating profit forecast for the full fiscal year to 3.4 trillion yen ($22 billion). It’s a clear demonstration of the company’s resilience, solid product lineup, and laser focus on hybrids during a shifting automotive landscape.
Simply put, Toyota can barely keep up as drivers worldwide clamour for cleaner, efficient rides but the company is making moves to keep those engines humming and those lot flags flying high.
This surge is a sign of the green shift gaining momentum. Toyota’s balancing act to meet soaring sales while managing costs will define its race through 2025 and beyond.
