Over 25% of vehicles sold world-wide were electric in 2025, and that percentage is steadily increasing. So VW & Ford were "too hot", Honda is looking like "too cold" and Toyota might be the "just right" of the three bears.
Most hybrids aren't liquid-cooled (although that is changing), and the smaller size means that a hybrid puts a lot more cycles per mile on the battery than an EV does.
Which in practice means that a hybrid battery lasts about 100,000 miles whereas an EV lasts about 250,000 miles.
A Prius is an amazing car; a 300,000 mile Prius is often still in good shape and worth the expense to replace the battery in. Which means you might put 3 batteries in a Prius and then look at how expensive it would be to replace the battery in an EV 3 times and choke. But very few people are going to spend the significant dollars it costs to replace the battery in a 250,000 mile Tesla so in practice that's an expense you'll never have.
eg, from one:
We clarified that the standard mileage for the Toyota Prius Prime is up to 500,000 miles, but we would place the high mileage point for the car at around 300,000 miles. Once the vehicle passes this point in its lifespan, it’s far more likely to experience issues that cost ample money to keep in excellent condition.
https://www.electricbike.com/the-curious-case-of-the-600000-...
https://driving.ca/vehicle-types/hybrid-vehicles/hybrid-high...
https://vanmag.com/city/people/vancouver-taxi-driver-worlds-...
The biggest issue with the Prius (at least for the years in my price range), is that the driving experience is liable to make one fall asleep at the wheel. They're the perfect cars for monks; if you're willing to forego all earthly driving pleasures, you can get high 40s mpg.
My grandmother drove a Prius, and there was a stir in my extended family as to whether she should still be driving, as she'd been seen going 20mph below the speed limit and was driving pretty far to the right side of her lane.
I got the opportunity to drive her Prius and promptly found myself alternating between going too fast and going too slow. Between the awkward pitch of the windshield and the gross-feeling electric power steering, I wasn't the best driver either. I never have any of these problems in my 2005 Honda Civic LX or my family's 4-cylinder 2011 Ford Ranger. The Prius felt like one of those stoned driving simulators that police departments bring to high schools in an effort to prevent DUIs.
I like the idea of hybrids and EVs, but it's hard to justify completely losing the pleasure of driving for 10 extra mpg. For all I know, newer models may have improved this, but they're still to expensive for me to pay any real attention to.
The biggest issue I think every auto maker needs to solve is cost. The average car payment is insane, with dealership markups it's even worst than it would be otherwise. I'm not sure how we got here on that, to me car interiors are no nicer than they were from 2005ish on. I don't even know what the cost is going into.
You want a Supra to drive much better than fine. But if you're in the market for a Corolla, "fine" might be better than some of the cars you're comparing against.
Add the fact that EVs are a lot simpler, and I don't really see the reasons to pay the Toyota premium. Perhaps less depreciation?
They are suffering with just incredibly terrible reliability. Every model was a failure on top of terrible support.
It's Rivian and Tesla, and it's not even close for the rest.
The adoption curve hasn't been nearly as steep as predicted, and the political landscape is unstable. Other manufacturers are also pulling back on their EV investments.
I'm not saying Honda isn't overdoing it, but a retreat from EVs isn't surprising.
EV's are a half trillion dollar market (20 million cars annually, average selling price $25K) that increased by 20% in 2025.
That's a massive increase in a massive market.
It's not the 50% per annum we were seeing earlier, but 20% of a big number is often more impressive than 50% of a big market.
Two of Honda's biggest markets are Japan and the US. The US is cooling on EVs with incentives and regulation changes making adoption less urgent. Japan already has an extremely low adoption rate. So the incentives for Honda to invest heavily just aren't there right now.
Other manufacturers are also pulling back. Ford is cutting way back on the Lightning for example.
In Japan, it's more a matter of not having good domestic options. Japanese people don't buy non-Japanese cars. When the Leaf was selling well world-wide, it sold well in Japan. But it's been a few years since the Leaf sold well anywhere. Now with good Toyota options and spiking gas prices I expect EV's to pick up in Japan. Nowhere is more dependent than Japan on the straight of Hormuz.