Investment in plug-in hybrid (PHEV) technology is allowing Toyota to aim to launch models that cover more than 120 miles with zero tailpipe emissions.
The carmaker plans to position its future PHEV models as the "practical BEV", sitting alongside a strengthened line-up of electric and hybrid cars.
Toyota will expand its current line-up of electric cars by releasing 10 new models, globally, by 2026, which would amount to 1.5 million vehicles of annual sales.
Hiroki Nakajima, executive vice president at Toyota, said: "We remain firmly committed to our multi-pathway approach. We will continue to tailor electrification to the needs of customers and individual regions by drawing on the strengths and characteristics of each vehicle type."
Nakajima added: "We also have plans to release next-generation BEVs entirely different from those of today―BEVs created by carmakers in 2026. This new generation of BEVs will double driving range by using batteries with far greater efficiency, While also offering designs and driving performance to set hearts racing."
The brand's traditional hybrids will also remain a key part of its model range. Toyota said the associated production costs of its hybrid powertrains have fallen to one sixth of their original cost as a result of generational improvements.
Hydrogen fuel cell (FCEV) powertrain development will be centred around Toyota's commercial vehicle line-up.
Nakajima confirmed: "We will work with business operators to promote FCEVs by starting with commercial vehicles such as medium- to heavy-duty trucks. Additionally, we have started basic research on hydrogen engines for heavy-duty commercial vehicles last year.