By Joseph White

DETROIT (Reuters) – The following technology of the Toyota (NYSE:) Camry, the best-selling sedan within the U.S. market, will include solely a gas-electric hybrid powertrain, the boldest transfer but by the Japanese automaker to push hybrid know-how into the center of the U.S. market.

The 2025 Camry will mix a 2.5-liter gasoline engine with an electrical drive system tuned to ship extra energy in each front-wheel drive and all-wheel drive variations of the automotive, Toyota mentioned.

Compliance with harder U.S. gasoline financial system guidelines was a think about Toyota’s choice to make the brand new Camry an all-hybrid car line, dropping four- and six-cylinder combustion fashions that made up about 85% of gross sales within the present mannequin yr, David Christ, head of the Toyota model in North America, informed Reuters. One other issue behind the choice was “the efficiency we had been capable of get out of the hybrid,” he mentioned.

Whereas Toyota has accelerated growth of electric-vehicle know-how, it’s nonetheless betting that demand for hybrids and plug-in hybrids will stay strong because the automaker takes a “multi-pathway” strategy looking for to fulfill buyer wants in each market.

The hybrid powertrain and a brand new digital all-wheel drive system ship 232 mixed horsepower – practically 15% greater than the outgoing Camry with a mechanical all-wheel drive system, Toyota mentioned.

Toyota executives unveiled the ninth technology of the midsized Camry sedan on Tuesday in Los Angeles, forward of the Los Angeles Auto Present that opens on Friday.

The brand new Camry will compete in a section largely deserted by the Detroit manufacturers, excluding Basic Motors (NYSE:)’ Chevrolet Malibu. The brand new Camry’s direct opponents – placing apart scores of compact and midsized SUVs – will embody just a few remaining sedans such because the Honda (NYSE:) Accord, the Hyundai (OTC:) Sonata and Tesla (NASDAQ:)’s all-electric Mannequin 3.

The Tesla Mannequin 3 outsold the Camry in California, a key marketplace for Toyota, in the course of the first 9 months of 2023, in response to information from the California New Automobile Sellers Affiliation.

Toyota didn’t disclose pricing or fuel-efficiency figures for the 2025 Camry, due in showrooms subsequent spring. The most cost effective Camry hybrid mannequin presently sells for about $2,400 greater than probably the most cheap combustion Camry.

Many of the hybrid powertrains promote at a $1,500 to $2,000 premium to combustion fashions, Christ mentioned. “We expect the worth the hybrid powertrain brings is price that form of premium.”

A present Camry hybrid is rated at 52 miles (84 km) per gallon in mixed metropolis and freeway driving, in contrast with a 32-mpg score for the standard four-cylinder Camry. The hybrid saves $650 a yr in gasoline prices in contrast with the combustion mannequin, in response to U.S. authorities gasoline financial system information.

Toyota beforehand switched its Sienna minivan to an all-hybrid powertrain strategy. The Sienna is “our second-fastest turning automotive and the automotive we’ve probably the most reservations for,” Christ mentioned.