Toyota: Leading the mainstream market towards purchasing hybrid electric vehicles In 1957 Toyota introduced its first vehicle to the American market, the Toyopet Crown. The small, fuel-efficient vehicle had been very successful in Japan, but had not been as successful in the U.S. market. With relatively cheap gas available in the United States, the American consumer saw no need for a reliable, fuel-efficient vehicle produced by a foreign automaker. In its first venture into the US market, Toyota learned some valuable lessons; Car manufacturers need to align their vehicles with customer needs, and a high-quality product is not always successful in the market. Toyota found an opportunity to re-enter the US market during the fuel shortages of the 1970s. For the first time, American consumers were looking for fuel-efficient vehicles, and Toyota had the answer. In 1965, foreign auto groups held only 5 percent of the U.S. auto market. This share is constantly increasing and foreign car manufacturers currently hold 40% of the market. With one foot in the U.S. market, Toyota has developed a reputation for designing simple, fuel-efficient, reliable and affordable vehicles. As of April 2003, with a solid reputation, flexible, low-cost production, and more than $134 billion in cash and assets, Toyota aims to become the world's largest automobile manufacturer. The auto industry and environment in the United States have changed dramatically since Toyota entered the U.S. scene nearly 50 years ago. In the 1950s there were 50 million vehicles on the roads, before the new millennium this figure rose to just under 500 million (an increase of 90%). Carbon dioxide emitted by traditional combustion engines in automotive technology......middle paper....... Toyota should continue to capitalize on its status as a market leader in innovative automotive manufacturing by committing resources to research and development of fuel cell vehicles. Toyota should also bridge this gap between hybrids and fuel cells by developing technology that is adaptable to both vehicles. With continued success in the innovation and production of hybrid vehicles, combined with licensing agreements with other manufacturers, increased government emissions regulations, and a fully integrated marketing campaign, hybrid vehicles will gain a strong hold on the U.S. market. Toyota is well positioned to become the global standard in hybrid electric vehicles. With its reputation as a market leader in this category, Toyota is in a favorable position and could soon achieve its goal of becoming the world's number one automotive manufacturer.