KEY HIGHLIGHTS
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Toyota confirms the 2026 RAV4 will be sold solely as a hybrid or plug-in hybrid, phasing out traditional gasoline-only models.
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The auto giant has not yet released pricing details for the redesigned RAV4 — currently the most popular SUV in the United States.
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Toyota North America COO Mark Templin indicated that more RAV4 production may move to Kentucky, though exact plans remain undisclosed amid tariff discussions.
PLANO, Texas — In a major shift for one of America’s top-selling vehicles, Toyota Motor has unveiled plans to make the upcoming 2026 RAV4 available only in hybrid and plug-in hybrid configurations. This marks a significant transformation in the RAV4 lineup, eliminating conventional gas-only models for the first time in the SUV’s history.
While the new RAV4 will retain a 2.5-liter four-cylinder engine, it will now be paired with electric motors and battery systems, aligning with hybrid technology strategies.
Despite slower-than-projected growth in the all-electric vehicle (EV) sector, the global auto industry is increasingly leaning into hybrid vehicles as a way to bridge traditional internal combustion with cleaner technologies — both for performance gains and to meet evolving fuel economy mandates.
Toyota, long considered a pioneer in hybrid vehicles thanks to the late 1990s introduction of the Prius, has stayed the course on hybrids even as other manufacturers pivoted more aggressively toward full EVs.
In the U.S., Toyota’s sales of electrified vehicles — including hybrids, plug-in hybrids, and EVs — accounted for 43.1% of its 2.3 million units sold in 2024.
Surge in Hybrid Popularity Drives Change
The RAV4 experienced a robust 9.3% increase in sales last year, hitting nearly 475,200 units sold. Notably, sales of hybrid RAV4s jumped 29.3%, and plug-in variants rose by 19.3%. Overall, hybrids made up about half of RAV4 sales in 2024.
According to Motor Intelligence, a record 20% of new vehicle sales in the U.S. last year came from electric and hybrid models — totaling 3.2 million vehicles. This includes 1.9 million hybrids (with plug-ins) and 1.3 million fully electric vehicles.
A Hybrid-Only Direction
David Christ, head of Toyota’s North American brand operations, emphasized that consumer preference played a central role in the company’s decision.
“The hybrid models are turning faster, getting more sales orders, and both dealers and consumers are leaning in that direction,” Christ stated during an event at Toyota’s North American HQ. “The message from the market was clear — hybrids are what customers want.”
Toyota anticipates further growth in its hybrid offerings and plans to expand plug-in hybrid options across its vehicle range.
Currently, seven Toyota models are exclusively hybrid — including the Prius and Camry sedans, Sienna minivan, and Sequoia SUV. The RAV4 will become the eighth member of this group.
In 2024, 44% of RAV4 sales were hybrid versions, while plug-in hybrids (offering short all-electric ranges with plug-in capability) represented 6.5%.
Next-Gen RAV4 Debuts Soon
The redesigned RAV4, featuring both interior and exterior upgrades along with improved performance and advanced technologies, will be available later this year at U.S. dealerships.
Toyota has yet to disclose pricing for the 2026 model. For reference, the current gasoline RAV4 starts at $30,645, while the hybrid model begins around $33,700 (including destination fees).
The RAV4 has consistently grown in popularity since its 1996 U.S. debut. Last year’s record-setting sales made it the most-purchased non-pickup vehicle in America.
Navigating Tariffs and Production Realities
Challenges loom, however. President Donald Trump’s 25% tariffs on imported vehicles and parts are impacting Toyota’s RAV4 strategy. While some RAV4s are assembled in Kentucky, the majority come from Ontario, Canada — and all plug-in hybrids are currently imported from Japan.
Overall, about half of Toyota’s U.S. sales come from imported models, including 84.3% of RAV4s and the popular Tacoma truck from Mexico.
Mark Templin said Toyota is evaluating expanding production at its Kentucky facility to help offset tariff risks, though details are still being worked out.
“It’ll sort itself out,” Templin said in an interview. “We’ll likely build more RAV4s in Kentucky. But with a vehicle this popular — it even outsold the F-150 — we’re going to need multiple plants.”
While Cox Automotive reported that the RAV4 was the third-best-selling vehicle in 2024 behind Ford’s F-Series and Chevy’s Silverado, some data suggests that the RAV4 may have actually surpassed them when individual truck variants are separated (e.g., F-150 alone).
2026 Toyota RAV4
Demand Keeps Inventory Tight
Toyota continues to struggle with limited supply. Its “days’ supply” — the amount of inventory available based on current sales rate — is one of the lowest in the industry. The industry average stands at 66 days, but Toyota’s is just 29, with the RAV4 among the quickest-selling models.
Templin acknowledged that uncertainty around tariffs and trade policy makes long-term planning difficult.
“The worst thing for this industry is uncertainty,” he concluded. “What we all need most is consistency.”
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