Toyota Multi-Pathway Strategy Takes Flight: New Models and A 30% xEV Target for Asia by 2030.
At the Japan Mobility Show 2025, Toyota reinforced its “Mobility for All” philosophy and Multi-Pathway Strategy, announcing a significant expansion of its affordable hybrid lineup and committing to launch over 10+ additional xEV models in Asia within the next three years.
The showcase by Toyota and its diversified brands—Century, Lexus, GR, and Daihatsu—was a strong statement of purpose, emphasizing the company’s core philosophy of “Mobility for All”. This approach recognizes that every individual deserves the right mobility solution, ensuring no customer is left behind by offering a choice of sustainable solutions.
Central to the exhibit was the firm’s Multi-Pathway approach to Carbon Neutrality. This strategy encompasses a full array of powertrains, including flex-fuel hybrids in South America, new fuel cell sedans in Japan, and an aggressive push for affordable hybrids in Asia. The belief is that by offering practical solutions tailored to local conditions, Toyota can ensure high-quality, durable, and reliable products.
Asia Strategy Accelerates Hybrid and Local Production
Toyota is set to undergo a significant transformation across Asia this year:
- Affordable Hybrids: The automaker is expanding its affordable Hybrid Electric Vehicle (HEV) lineup with the introduction of the Yaris ATIV hybrid model. This model, also known as the Vios in Malaysia, has already been launched in Thailand and delivers impressive fuel economy, positioning it as a key component for mass market electrification.
- Local BEV Production: Toyota confirmed the commencement of Battery Electric Vehicle (BEV) local production in Indonesia and Thailand.
- Future Targets: The Toyota brand aims to introduce more than 10 additional xEV models in Asia over the next three years, aligning with its ambitious “30 by 30 mission” to sell 30% of xEVs across ASEAN by 2030.
- New Icons and Green Initiatives: The show also displayed the Land Cruiser FJ, which will be produced in Thailand, retaining the model’s trademark reliability and off-road performance. Furthermore, Toyota announced bio-fuel trials and hydrogen refuelling station demonstrations in Asia.
The Malaysian EV Paradox
While Toyota accelerates EV and PHEV production and sales across the region (including BEV local assembly in Indonesia and Thailand), the brand’s direct presence in the Malaysian mass-market BEV and Plug-in Hybrid (PHEV) segment remains conspicuously absent.
Currently, the most notable foray into full electrification in Malaysia has been the launch of the premium, limited volume Lexus RZ. This cautious strategy, focusing almost exclusively on hybrid technology (HEV) for volume models, risks isolating Toyota from the rapidly expanding and increasingly competitive affordable EV market in Malaysia, where rivals like BYD and Chery are quickly gaining market share with fully electric models.
The pressure is mounting for Toyota Malaysia to fully engage its Multi-Pathway Strategy by introducing its affordable BEV and PHEV options to stay competitive against the accelerating wave of Chinese electrification.
