The Savvy Drivers’ Latest Toyota Test Drives
Toyota pricing strategies undercut traditional luxury competitors while offering a suite of amenities that appeal to buyers seeking both innovation and value. As rivals face declines in sales, Toyota Group maintains its position as the world’s largest automotive manufacturer in 2025, capturing a 12.5% market share, a 6.4% increase year-over-year.
What’s really paying off is Toyota’s focus on hybrids and other electrified vehicles, and commitment to innovation and sustainability. Sales of electrified vehicles (hybrids, plug-in hybrids, and EVs) saw a significant jump in Q1 2025, representing over 46% of total sales volume in June. And Toyota forecasts continued growth in electrified model sales, expecting to reach 5.1 million units in FY2026.
2025 Camry: Hybrid-Only. Luxury-Adjacent Features Without the Premium Price Tag
In a show of faith for the sedan segment, Toyota completely redesigned the 2025 Camry and took a bold step in making it available in hybrid-only.
Toyota’s fifth generation hybrid powertrain combines a 2.5-liter four-cylinder engine with two electric motors, delivering a combined 225 horsepower in front-wheel-drive models, representing a 17-hp improvement over the last-generation Camry Hybrid and a 22-hp bump over the outgoing non-hybrid four-cylinder. Out tester had the optional all-wheel-drive system that adds a third electric motor to the rear and bumps power up to 232 hp.
Toyota achieves about the same efficiency as the previous Camry Hybrid while adding both power and torque–51 mpg combined or the standard FWD. And the monroney on our AWD test model was rated 46 mpg.
Revised suspension dampers, new brake tuning, and a thicker rear stabilizer bar significantly add to Camry’s driving prowess. Styling is new inside and out as a wide array of technology features that include an available 12.3-inch center touchscreen and a low-speed hands-free driving system. Our top-spec XLE trim added noise-insulated glass—a huge plus in auditory comfort.
When compared to typical luxury sedans, the 2025 Camry’s pricing—starting at $29,495 and climbing to $41,748 for the fully equipped XLE AWD model with the Premium Plus package—comes in significantly lower while offering advanced technology, safety features, and comfort amenities often found in higher-end vehicles.
Hybrid Powertrains are Now Increasingly Standard Across Toyota’s Popular 3-Row SUV models.
All-Wheel Drive is Standard On All Highlander Hybrid Trims.
The Highlander is the smallest and most affordable among the three-seater options and it comes nicely equipped. The system features a 2.5-liter four-cylinder engine paired with a trio of electric motors to provide 243 hp. It’s EPA-rated at 34 mpg combined, besting the non-hybrid Highlander rated at 25 mpg combined.
The 2025 Highlander hybrid pricing starts around $41K (only about $2K more on average than the gas version), and tops out in the mid $50k range.
Grand Highlander—More Space, Gutsier Engines
We’ve also had opportunity to experience the Toyota Grand Highlander Hybrid. Its standard engine is a 2.4-liter turbocharged four-cylinder hybrid engine paired with a CVT transmission, good for 265 hp and 310 lb-foot of torque. The standard drivetrain for the Grand Highlander is front-wheel drive, with AWD available as an optional upgrade.
Upgrading to the Limited or Platinum trim, give you another engine option. Toyota’s Hybrid MAX combines a turbocharged 2.4-liter engine with performance-oriented electric motors paired to a 6-speed automatic transmission with AWD standard. It’s good for 362 horsepower and 400 lb-ft of torque.
Compared to the previous non-hybrid models rated at 24 mpg, Grand Highlander is rated at 36 mpg with the FWD 2.4L hybrid, or 34 mpg with AWD. And the AWD Hybrid MAX is rated at 27 combined mpg.
The premium for hybrid vs gas on the Grand Highlander isn’t too bad—only about $4k on average. Pricing on the Grand Highlander Hybrid starts around $44K and tops out around $60k.
Sequoia: Hybrid Only. Large & Luxurious With Nearly Double the Towing Strength
Either the Highlander or Grand Highlander (including those with Hybrid MAX) will tow up to 5,000 pounds. If you need more tow power and even more space, the full-size Sequoia can tow up to 9,520 pounds. For shoppers who value sheer power, towing, and premium features—and are ready for the higher price—the Sequoia represents Toyota’s pinnacle SUV offering, standing apart from the brand’s lighter, more fuel-efficient options.
Sequoia is exclusively powered by the same hybrid powertrain as the Toyota Tundra pickup—a 3.5L twin-turbo V6 engine and electric motor (donned I-Force MAX), producing a combined 437 horsepower and astonishing 583 lb-ft of torque–figures that rival or surpass many traditional gasoline engines. Rear-wheel-drive is standard while AWD is an option on most trims and standard on the TRD Pro trim.
The I-Force MAX system is designed for a balance of performance and efficiency, rather than maximizing fuel economy. Thus, Sequoia hybrids are competitive but not exceptional—20 mpg for 4×2 models and 22 mpg for 4x4s.
The last model year for the gas-only Sequoia was 2022 and pricing started around $52K. Pricing for the hybrid-only 2025 Toyota Sequoia starts at $62,425 and tops out at the mid-$80k range. Sales figures since 2022 show a dramatic turnaround. After a major refresh in 2023, Toyota reports a significant increase in Sequoia sales in the years following, indicating buyers willingness to pay more for a higher-end experience.
Hybrid Pickups Redefine Power, Efficiency, and Versatility
By integrating I-Force MAX hybrid engines into its largest and most capable vehicles, Toyota redefines what pickups can be—powerful enough for demanding tasks, efficient enough for daily use, and ready to adapt to a rapidly changing automotive landscape.
Our Tacoma Trailhunter’s off-road ready drivetrain was part-time four-wheel drive with two-speed transfer case and electronic locking rear differential. Add OME (Old Man Emu) double wishbone suspension in front with multi-link with coil springs rear, and 2.5-inch shocks and you’re ready to tackle just about any terrain. All were included in the Trailhunter trim.
The key advantage to the hybrid vs gas engine is more torque and smoother power delivery, especially under load. While the hybrid’s city fuel economy is notably better than the gas engine’s (23 mpg vs 20 mpg), the highway figures are similar, balancing out to 23 mpg combined for either engine choice.
You’ll pay at a premium of at least $10K for the hybrid vs. gas engine. Pricing for Tacoma hybrids starts around $46K and tops out at over $65k. While Tacoma hybrid sales have shown substantial growth compared to 2024, the gas model still continues to be the dominant seller for now.
A Future Where High Performance, Low Emissions, and Versatility Coexist
Toyota’s commitment to hybrid powertrains across its entire vehicle lineup puts it in a power position. Next up, it’s developing performance-focused hybrid engines for Toyota GR (Gazoo Racing) models.
The brand’s hybrid approach is part of a broader “multi-pathway” strategy that includes hydrogen fuel-cell vehicles, green fuels, and potentially other new technologies. And Toyota is targeting significant growth in PHEVs, planning to increase their presence in the U.S. sales volume from 2.4% last year to roughly 20% by 2030.
