Needs HD Radio

I hope Toyota adds HD Radio in the future.

HD Radio doesn't have the selection of satellite radio, but you get much better sound quality. Your local FM HD radio stations sound like you're playing a CD and you have no subscription fees!

Does Toyota have any plans on adding HD Radio on any Toyota models or is it in conflict with their XM contracts?

 

You can have both.
BMW offers an HD radio option and they also offer an option to get Sirius satellite radio and you can have them together or separately.

HD radio isn't exactly directly competing with satellite radio. They offer different benefits.

Satellite radio is a pay monthly subscription service where you get a huge selection of commercial free stations that will follow you even when you drive cross country. You get a large quantity of stations, but you only get so-so sound quality.


With HD radio, you get a bit more selection of local stations than you get with only a standard analog radio (some local stations that have only 1 analog feed have multiple digital HD radio feeds) and you get much more clean and clear sound up to CD quality sound no monthly fee since they are local stations with local ads sponsoring the cost. When you drive to a different region of the country, you get different stations just like analog radio. All you need is a radio that can receive the HD radio signal.

Someone might want HD radio locally and satellite radio for road trips or might want to switch back and forth at different times.
XM Radio isn't a substitute for HD radio anymore than it is a substitute for analog radio. I don't think many people would want their analog radio removed and have XM as their only radio in their car.
HD radio will probably end up replacing analog radio just like digital TV replaced analog TV today.