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While EVs Reign, Toyota Bets Big on a Brand New Prius Hybrid

While legacy automakers are looking fully electrify their fleets, Toyota has doubled down on its classic hybrid.
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And then there's the Prius. 

You know the Prius. That's Toyota's  (TOYOF)  hybrid vehicle that combines an internal combustion engine with an electric motor.

The vehicle was launched as the world's first mass-produced hybrid car in 1997, the year "The Lion King" debuted on Broadway, and IBM’s  (IBM) - Get Free Report Deep Blue chess-playing computer defeated chess champion Garry Kasparov.

The Prius won the Car of the Year Japan Award in '97 and the Prius NHW11 -- sometimes called "Generation II" -- was the first Prius sold outside of Japan, with sales in limited numbers beginning in 2000 in Asia, America, Europe, and Australia.

The Prius went through several generations over the years as the auto industry went through some massive changes. 

While the legacy vehicle makers, such as GM  (GM) - Get Free Report and Ford  (F) - Get Free Report, are in the process of fully electrifying their fleets, Toyota has been moving a bit slower as it rocks on to Electric Avenue.

The company plans to produce only 3.5 million electric vehicles by 2030, or only a third of its total vehicles. Meanwhile Tesla, the market leader, plans to produce 20 million electric vehicles a year by 2030.

Some people might think that the Prius wouldn't find any love in this juiced-up world.

Toyota Started From Scratch on the new Prius

But they would be wrong. 

Toyota, the world's second largest automotive group based on market value behind Tesla  (TSLA) - Get Free Report, unveiled new versions of the Prius on Nov. 16.

"The All-New #Prius is Here!" the company tweeted. "The Prius, the world's leading eco-car, has just undergone a model change! With a focus on 'design" and 'driving,' it will lead the world in a beautiful direction once again!"

The company said the Series Parallel Hybrid (HEV) models will launch in winter this year and Plug-in Hybrid (PHEV) models will launch in spring 2023.

"The development team decided to start from scratch and look at what the Prius needs to remain popular for the next 25 years," Toyota said in a statement. "Based on a desire to renew the Prius itself and communicate the appeal of hybrid cars to an even wider audience, the Hybrid Reborn concept was created."

Toyota said the reworked hybrid system produces 193 hp in standard form and 220 hp in the plug-in-hybrid model, while a 2.0-liter inline-four gasoline engine replaces the old 1.8-liter unit.

"New prius makes me believe that you can still make cool looking car in modern times," one person tweeted.

Toyota Banks on a Better Looking Prius

"Toyota Prius, suddenly looking a whole lot better," another tweet read.

Following Japan, the new Prius will be launched in North America, Europe, and other countries around the world.

"The first-generation Prius was conservative in all regards except the powertrain," said Peter Wells, professor of business and sustainability at Cardiff University. "This generation reverses that position: a now-conservative choice of powertrain in a much stronger visual design. "

Wells said that Toyota has been relatively reluctant to embrace the rush to battery electric, which is a reflection of their market position globally -- relatively small in Europe for example -- the product segment for Prius, and an inherently cautious management.

"I can understand the logic," he said. "The hybrid Prius will be profitable at a time when many pure BEVs are not. Transition to a pure BEV would be possible in the future if the market warrants such a move, but in the meantime pure electric means bigger batteries to offer meaningful range and that still means a higher price."

The Prius, Wells added, "also goes against the contemporary trend towards cross-over and SUV style vehicles, so perhaps future volume expectations are relatively modest."