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For years, Toyota has been active in challenging the narrative that prioritizes battery electric vehicles (BEVs) as the sole solution for decarbonizing transportation. The company has long argued that hybrid vehicles—including those utilizing alternative fuels—could play a more immediate role in reducing emissions than BEVs. Recent government policy changes and studies from institutions like Harvard suggest Toyota may have been right all along. These studies indicate that hybrid vehicles, particularly when coupled with cleaner fuel sources, can achieve substantial emissions reductions while avoiding many of the challenges associated with full electrification.
The Rising Appeal of Hybrid Vehicles
A study led by a group of Harvard researchers published in Nature Communications in 2024 finds the U.S. will fall short of its target for reducing vehicle emissions by nearly 15 percent over the next decade because of unrealistic goals for increasing electric vehicle production. But adding more hybrids to the mix can help fill the gap in the clean energy transition.
Hybrid vehicles have gained traction because they offer a balanced approach to reducing emissions, combining fuel efficiency with affordability and practicality. As a result, interest is growing in hybrid vehicles that run on alternative fuels such as propane autogas. This combination enhances cost savings and reduces emissions even further compared to gasoline or diesel-powered vehicles.
Two leading companies specializing in propane autogas conversion systems—Westport Fuel Systems and Alliance Autogas—are at the forefront of this movement. They see a bright future for hybrid vehicles powered by propane autogas, particularly as automakers continue to develop more hybrid medium-duty trucks and vans that will appeal to fleet operators.
The Toyota RAV4 Hybrid: A Game Changer for Fleets
Among the most popular choices for propane autogas fleet conversions is the Toyota RAV4 hybrid, which has gained significant traction in the transportation sector. According to Stephen Holland, Vice President of Engineering at Alliance Autogas, the company has been actively engaged in hybridization efforts, with the RAV4 being a major success story. Holland describes hybridization as the “short-term answer” to reducing emissions, especially in vehicle classes where full electrification is not yet feasible.
Yellow Checker Star (YCS) Transportation in Las Vegas has one of Nevada’s largest taxi fleets with more than 900 vehicles. Nearly the entire YCS fleet utilizes propane autogas and close to half of those vehicles are hybrid. The company’s shift toward hybrid vehicles has allowed them to increase their commitment to sustainability. Holland says Alliance Autogas provides the conversion systems for YCS, with the company expanding its fleet of propane-powered hybrid taxis, including many Toyota RAV4 hybrids.
Toyota RAV4 before and after autogas conversion showing the propane tank installed in the spare tire area.
Beyond Passenger Vehicles: Hybridization of Work Trucks
While much of the current focus on hybrid vehicles is centered on passenger cars like the RAV4, industry leaders believe the real transformation will occur in the medium- and heavy-duty truck sectors. Holland says hybridization will become increasingly important for work trucks where full battery electrification is impractical due to weight constraints and limited range.
For work trucks and service vehicles that require substantial power, hybridization offers an efficient way to maintain performance while significantly improving fuel economy. The ability to use a smaller engine with additional torque from an electric motor reduces fuel consumption and emissions when the vehicle is not under heavy load.
Policy Shifts and Market Trends Favoring Hybrids
Recent political and economic developments are further fueling interest in hybrid vehicles. With the Trump administration moving to scale back support for nationwide EV charging infrastructure, concerns about charging accessibility and grid capacity have grown. As a result, hybrid vehicles are becoming an increasingly attractive alternative.
Ashley Nuel, Vice President of Investor Relations at Westport Fuel Systems, notes that discussions around alternative fuels and hybrid vehicles have changed significantly over the past year. Vancouver, British Columbia-based Westport Fuel Systems is a leading supplier of affordable fuel delivery components and systems for a wide range of alternative low-carbon and zero-carbon fuels. The company provides systems to convert gasoline and diesel vehicles to propane and works with automakers to offer propane autogas hybrid vehicles.
Nuel points out that hybrid vehicles, particularly those running on cleaner fuels like propane autogas, are gaining renewed interest as a viable pathway to decarbonization.
“Six to eight months ago, everything was about electrification and that’s changing in a big way, particularly in North America,” says Nuel. “The discussion of anything that would be around fossil fuels is now not taboo anymore. The idea of a hybrid is absolutely having its time in the sun right now because it’s going to be a much more popular option.”
This shift is not confined to North America. According to Davide Colombano, Marketing Manager at Westport Fuel Systems in Italy, European policymakers are also reconsidering their stance on internal combustion engine (ICE) bans. While the EU had initially planned to phase out ICE vehicles by 2035, there is now discussion about whether hybridization should play a more prominent role in the transition to cleaner transportation since Europe is also falling short on emissions reduction targets.
Westport Fuel Systems worked with Kia on its new Niro Tri-Fuel, the company’s first full-hybrid that can also run on propane. The Niro can cover 1,000 miles before refueling.
The Future of Hybrid Propane Autogas Vehicles
As hybrid vehicle technology continues to evolve, propane autogas is emerging as a practical and cost-effective solution for fleets and individual motorists looking to reduce their carbon footprint. Companies like Westport Fuel Systems and Alliance Autogas remain committed to expanding hybrid conversion systems, anticipating strong demand for hybrid work trucks and service vehicles in the coming years.
With Toyota’s long-standing emphasis on hybridization now being backed by independent research and shifting market dynamics, the role of propane autogas hybrid vehicles is set to expand. As fleets seek reliable, cost-efficient, and sustainable solutions, hybrid vehicles running on alternative fuels could become a dominant force in decarbonization efforts.
