Toyota is one of the two biggest automakers in the world, but unlike modern Volkswagen, it's a conservative moving company. For that reason alone, the decision to make the ninth generation of the Toyota Camry only available as a hybrid is a huge bellwether for the entire industry. It should also be a wake-up call to mass-market consumers that it is, indeed, time to make their next car a hybrid. The clues are already there and have been for years, and reasonably so, but people have been reticent to go hybrid. The concern of future costs when a battery dies and the increased complexity involved in adding a battery and electric motors to a car is a real consideration. But now Toyota has made the Camry a hybrid-only car, and that's a huge signal to pay attention to.

Why The Camry?

The Toyota Camry has been around since 1982 and became Toyota's second "world car" after the Corolla. Since its launch, it slowly but surely became the brand's flagship for reliability and one of the most successful mid-size sedans yet. While it is now out-performed in sales by the RAV4, the Camry is still a mover and a symbol of Toyota models' longevity. It's still an important car for Toyota. It's the vehicle that spawned the truism that cars last if their owners look after them, but a Toyota lasts despite its owner.

By putting its hybrid system in the Camry with no alternative for customers, Toyota is signaling that its system is good enough to maintain its reputation for low-cost reliability despite the complexity of the drivetrain.

Why Does This Matter Now?

The days of cheap gas in the US are over. The reality now is that with alternative energy vehicles now on the horizon, oil companies are maximizing profits, and they have us, pun intended, over a barrel. Gas prices have never gone back down to where they were after a big hike, and in January 2021, the average price of a gallon was $2.40. As of March 2024, it became $3.40. In states like California, Nevada, Oregon, Utah, and Washington, the average is well over $4.50 a gallon.

Allowing for inflation, we are paying over twice as much for gas as people were in 1994, and 90 percent more than in 2004, then 50 percent more now than in 2020. People can blame whatever they like - state politicians, presidents, the state of the Middle East - but the fact doesn't change; in a country that relies so intensely on cars to travel, gas prices have only ever gone up, and the degree they're going up year over year now is significant. The difference between 20-something miles per gallon and 50 miles per gallon on a daily commute adds up in the monthly budget. If you're driving a 25-mile-to-the-gallon vehicle right now, you can go twice as far on a tank in a new Camry. If you're filling up once a week, well, the math isn't difficult - you would be cutting your monthly fuel budget on that car in half.

So, Buy An EV, Then?

The unfortunate reality of owning an all-electric car is that it has to suit your lifestyle, and it makes you an early adopter, which has its own drawbacks. If you live in an apartment, chances are there isn't a charger for you to use in the parking area, let alone is it guaranteed to be accessible every night. If you have to street park, then there won't be any chance of a charger magically appearing. Either way, you have to rely on the charging network, which isn't reliable anywhere in the US right now and won't be for a long time.

However, if you have a garage to put a charging station in, an EV may be the answer. In this case, there are some great ones available. Just bear in mind that the depreciation curve is steep as technology is advancing rapidly. What's impressive today likely won't be that impressive in four to five years. Anyone buying an EV right now is, in reality, an early adopter and has to deal with the fact charging isn't as quick and easy as spending five or so minutes at a gas station on your way to or from wherever.

Should You Buy A Toyota Camry, Then?

If you've liked the idea of a Prius, but either it's not big enough, or it's too deliberately weird for you, the new Camry is the answer. But if you want a crossover, this is likely a sign that Toyota is ready to fully commit to the reality of the next 15 years or so - that for all the hype and pushing of full-electric vehicles, the largest percentage of new-car buyers will be going hybrid in the foreseeable future. We wouldn't be surprised if the RAV4 were next to go hybrid only. We suspect the Corolla wasn't first because it would make the Prius irrelevant, and Toyota wants to keep that name until it has a battery it can drop in to make it a cutting-edge high-range EV.