The US automotive market experienced a historic year in 2025 thanks to the outstanding performance of Toyota and Lexus. Both Japanese brands consolidated their leadership with record figures, driven by a strategy focused on the electrification and reliability of their models.

This success not only reflects consumer preference for hybrid and plug-in vehicles, but also marks a turning point in the competition against Tesla and other electric brands.

The Toyota Motor North America division reported total sales of 2.51 million units during 2025, representing an 8% increase compared to 2024. Of this total, electrified vehicles accounted for 47%, equivalent to 1.18 million units, with a year-over-year growth of 17.6%.

Toyota continues to dominate with hybrids and plug-in hybrids

Toyota reinforced its position as leader Toyota achieved its highest sales in the US, with 2.14 million vehicles sold, an 8.1% increase year-over-year. This marks its fourth-best year ever and its highest level since 2017. Nearly half of these sales, 1.05 million units, were electrified models, which grew 19% year-over-year. Toyota's success reflects a clear strategy: to offer efficient and reliable hybrid and plug-in hybrid options that meet the growing consumer demand for sustainable mobility without compromising performance or quality. The brand has managed to position itself as a benchmark for trust and durability in the US market.

Lexus achieves its best year ever

For its part, Lexus celebrated an unprecedented year in sales, with 370,260 vehicles delivered, 7.1% more than in 2014. Electrified models represented 35.6% of the total, equivalent to 131,851 units, 7.2% more and the highest figure recorded for the luxury division.

This performance reinforces Lexus' strategy of combining premium luxury with sustainable technology, attracting an audience that seeks eco-friendly innovation without sacrificing comfort or performance.

The brand's flagship hybrids have been key to dominating the high-end segment and consolidating Lexus' reputation as a pioneer in electrified luxury.

Multi-million dollar investments that strengthen local production

Toyota has also invested significantly in the United States to ensure its long-term leadership.

In 2025, it opened its first battery plant in North Carolina with an investment of nearly $14 billion, generating up to 5,100 local jobs. In addition, it allocated $912 million to modernize five manufacturing plants, creating 252 new jobs, as part of a larger $10 billion, five-year plan. These actions not only increase production capacity but also strengthen the supply chain for electrified vehicles, solidifying Toyota as an economic pillar in the region. Tesla and the electric competition under pressure. While Toyota and Lexus celebrate, Tesla faced a challenging year with quarterly sales below expectations: 418,227 units in the last quarter of 2025, totaling 1.64 million for the year. BYD, on the other hand, surpassed Tesla with 2.26 million units sold in the same period. Factors such as the elimination of the $7,500 tax credit for electric vehicles, increasing Chinese and European competition, and difficulties in key markets have limited Elon Musk's company. Analysts predict that demand for electric vehicles in the US will gradually stabilize, favoring brands with established hybrid portfolios like Toyota. Outlook for 2026: These historic results redefine the American automotive landscape, where the combination of reliability and electrified options from Toyota and Lexus is gaining ground against competitors. Andrew Gilleland, vice president of operations for Toyota in North America, noted: “The enthusiastic customer response to affordable and diverse options demonstrates that our electrification and local production strategy is working.” By 2026, the trend is expected to continue with a greater emphasis on local production and sustainability. Toyota seems to have the winning formula.

The brand's flagship hybrids have been key to dominating the high-end segment and solidifying Lexus's reputation as a pioneer in electrified luxury.

Multi-million dollar investments that strengthen local production

Toyota has also invested significantly in the United States to ensure its long-term leadership.

In 2025, it opened its first battery plant in North Carolina with an investment of nearly $14 billion, generating up to 5,100 local jobs. In addition, it allocated $912 million to modernize five manufacturing plants, creating 252 new jobs, as part of a larger $10 billion, five-year plan. These actions not only increase production capacity but also strengthen the supply chain for electrified vehicles, solidifying Toyota as an economic pillar in the region. Tesla and the electric competition under pressure. While Toyota and Lexus celebrate, Tesla faced a challenging year with quarterly sales below expectations: 418,227 units in the last quarter of 2025, totaling 1.64 million for the year. BYD, on the other hand, surpassed Tesla with 2.26 million units sold in the same period. Factors such as the elimination of the $7,500 tax credit for electric vehicles, increasing Chinese and European competition, and difficulties in key markets have limited Elon Musk's company. Analysts predict that demand for electric vehicles in the US will gradually stabilize, favoring brands with established hybrid portfolios like Toyota. Outlook for 2026: These historic results redefine the American automotive landscape, where the combination of reliability and electrified options from Toyota and Lexus is gaining ground against competitors. Andrew Gilleland, vice president of operations for Toyota in North America, noted: “The enthusiastic customer response to affordable and diverse options demonstrates that our electrification and local production strategy is working.” By 2026, the trend is expected to continue with a greater emphasis on local production and sustainability. Toyota seems to have the winning formula.

The brand's flagship hybrids have been key to dominating the high-end segment and solidifying Lexus's reputation as a pioneer in electrified luxury.

Multi-million dollar investments that strengthen local production

Toyota has also invested significantly in the United States to ensure its long-term leadership.

In 2025, it opened its first battery plant in North Carolina with an investment of nearly $14 billion, generating up to 5,100 local jobs. In addition, it allocated $912 million to modernize five manufacturing plants, creating 252 new jobs, as part of a larger $10 billion, five-year plan. These actions not only increase production capacity but also strengthen the supply chain for electrified vehicles, solidifying Toyota as an economic pillar in the region. Tesla and the electric competition under pressure. While Toyota and Lexus celebrate, Tesla faced a challenging year with quarterly sales below expectations: 418,227 units in the last quarter of 2025, totaling 1.64 million for the year. BYD, on the other hand, surpassed Tesla with 2.26 million units sold in the same period. Factors such as the elimination of the $7,500 tax credit for electric vehicles, increasing Chinese and European competition, and difficulties in key markets have limited Elon Musk's company. Analysts predict that demand for electric vehicles in the US will gradually stabilize, favoring brands with established hybrid portfolios like Toyota. Outlook for 2026: These historic results redefine the American automotive landscape, where the combination of reliability and electrified options from Toyota and Lexus is gaining ground against competitors. Andrew Gilleland, vice president of operations for Toyota in North America, noted: “The enthusiastic customer response to affordable and diverse options demonstrates that our electrification and local production strategy is working.” By 2026, the trend is expected to continue with a greater emphasis on local production and sustainability. Toyota seems to have the winning formula.Toyota allocated $912 million to modernize five manufacturing plants, creating 252 new jobs, as part of a larger $10 billion, five-year plan. These actions not only increase production capacity but also strengthen the supply chain for electrified vehicles, solidifying Toyota's position as an economic pillar in the region. Tesla and the electric competition under pressure. While Toyota and Lexus celebrate, Tesla faced a challenging year with quarterly sales below expectations: 418,227 units in the last quarter of 2025, totaling 1.64 million for the year. BYD, on the other hand, surpassed Tesla with 2.26 million units sold in the same period. Factors such as the elimination of the $7,500 tax credit for electric vehicles, increasing Chinese and European competition, and difficulties in key markets have limited Elon Musk's company. Analysts predict that demand for electric vehicles in the US will gradually stabilize, favoring brands with established hybrid portfolios like Toyota. Outlook for 2026: These historic results redefine the American automotive landscape, where the combination of reliability and electrified options from Toyota and Lexus is gaining ground against competitors. Andrew Gilleland, vice president of operations for Toyota in North America, noted: “The enthusiastic customer response to affordable and diverse options demonstrates that our electrification and local production strategy is working.” By 2026, the trend is expected to continue with a greater emphasis on local production and sustainability. Toyota seems to have the winning formula.Toyota allocated $912 million to modernize five manufacturing plants, creating 252 new jobs, as part of a larger $10 billion, five-year plan. These actions not only increase production capacity but also strengthen the supply chain for electrified vehicles, solidifying Toyota's position as an economic pillar in the region. Tesla and the electric competition under pressure. While Toyota and Lexus celebrate, Tesla faced a challenging year with quarterly sales below expectations: 418,227 units in the last quarter of 2025, totaling 1.64 million for the year. BYD, on the other hand, surpassed Tesla with 2.26 million units sold in the same period. Factors such as the elimination of the $7,500 tax credit for electric vehicles, increasing Chinese and European competition, and difficulties in key markets have limited Elon Musk's company. Analysts predict that demand for electric vehicles in the US will gradually stabilize, favoring brands with established hybrid portfolios like Toyota. Outlook for 2026: These historic results redefine the American automotive landscape, where the combination of reliability and electrified options from Toyota and Lexus is gaining ground against competitors. Andrew Gilleland, vice president of operations for Toyota in North America, noted: “The enthusiastic customer response to affordable and diverse options demonstrates that our electrification and local production strategy is working.” By 2026, the trend is expected to continue with a greater emphasis on local production and sustainability. Toyota seems to have the winning formula.favoring brands with established hybrid portfolios like Toyota.