PLANO, Texas — The highest-selling SUV in america will completely be supplied as a hybrid mannequin as a part of a redesign of the RAV4 lineup, Toyota Motor introduced Tuesday evening.
The world’s largest automaker mentioned the 2026 Toyota RAV4 solely will probably be supplied as a hybrid or plug-in hybrid, eliminating a conventional gasoline engine within the automobile for the primary time. It can nonetheless have a 2.5-liter four-cylinder engine, however with hybrid applied sciences corresponding to batteries and electrical motors.
Regardless of a slower-than-expected adoption of all-electric automobiles, automakers have seemed to hybrid fashions — which mix electrical automobile applied sciences with conventional inside combustion engines — to extend efficiency and assist them meet gas economic system laws.
Toyota, which began providing hybrids with the Toyota Prius in late Nineties, has been a worldwide chief and advocate for hybrid adoption, regardless of an business push in recent times for automakers to completely supply all-electric automobiles.
Toyota’s electrified automobile gross sales within the U.S. — together with hybrids, plug-in hybrids and all-electric automobiles — accounted for 43.1% of the corporate’s 2.3 million models bought domestically in 2024.
RAV4 gross sales elevated 9.3% final 12 months to almost 475,200 models bought, together with a 29.3% enhance in RAV4 hybrids and 19.3% acquire in plug-in hybrid electrical automobiles. Roughly half of RAV4 gross sales final 12 months had been hybrids.
Gross sales of all-electric automobiles and hybrid fashions reached a document 20% of latest automotive and truck gross sales within the U.S. final 12 months, to three.2 million electrified automobiles, in accordance with auto knowledge agency Motor Intelligence. That encompasses 1.9 million hybrid automobiles, together with plug-in fashions, and 1.3 million all-electric fashions.
Hybrid-only
David Christ, head of the Toyota model in North America, mentioned the corporate determined to completely supply the RAV4 as a hybrid due to its already established reputation and rising buyer demand.
“The hybrid is quicker turning; it has extra gross sales orders on it, and the shoppers and sellers are asking for it,” he instructed CNBC Tuesday throughout an occasion on the automaker’s North American headquarters. “It was fairly clear that the buyer is voting for the hybrid.”
Christ mentioned the automaker expects to proceed rising its hybrid choices, together with further plug-in hybrid electrical automobile choices.
Seven of Toyota’s present automobiles are completely hybrid fashions, together with the Camry and Prius automobiles, Sienna minivan and Sequoia SUV. RAV4 would be the eighth.
2026 Toyota RAV4 household of automobiles
Toyota
RAV4 hybrids accounted for 44% of gross sales final 12 months, Toyota reported, whereas plug-in fashions — which provide all-electric ranges with a conventional engine that must be plugged in — had been 6.5%.
The redesigned RAV4 is about to go on sale at U.S. Toyota dealerships in later this 12 months. The all-hybrid RAV4 lineup is a part of a next-generation redesign of the automobile that included inside and exterior design adjustments, in addition to upgrades to the automobile’s efficiency and applied sciences.
The corporate declined to reveal pricing till nearer to the automobile’s launch. The present RAV4 begins at $30,645. The hybrid variant begins at about $33,700. Pricing contains necessary supply charges.
The RAV4 has steadily elevated gross sales since its U.S. introduction for the 1996 mannequin 12 months. Final 12 months’s gross sales of the automobile elevated 9.3% year-over-year to a brand new document — making it the best-selling non-pickup nameplate within the U.S. final 12 months.
Tariffs
The RAV4 faces new challenges this 12 months with President Donald Trump’s ongoing tariffs of 25% on automobiles imported into the U.S., in addition to many vehicle components.
Toyota produces the RAV4 at a plant in Kentucky, however a majority of its U.S. gross sales come from automobiles constructed at a plant in Ontario, Canada. It presently completely imports plug-in hybrid fashions for U.S. shoppers from Japan.
Roughly half of Toyota’s U.S. gross sales are imported from exterior of the U.S., together with 84.3% of RAV4 fashions, in addition to its fashionable Tacoma midsize pickup truck from Mexico.
Mark Templin, chief working officer of Toyota Motor North America, mentioned the corporate plans to supply extra RAV4 fashions at its Kentucky plant, however declined to supply particular plans for potential adjustments in manufacturing to mitigate tariffs.
“It will work its approach out. I believe we’ll construct extra RAV4s in Kentucky, which can assist. However that is such a giant quantity automotive. … It was the No. 1 promoting automobile in the whole market, even beating out the F-150,” he instructed CNBC. “Now we’re bringing out one which’s even higher than that automotive. So, I believe that we will want a number of crops to construct that.”
Cox Automotive reviews the RAV4 completed third in gross sales final 12 months behind the Ford F-Sequence and Chevrolet Silverado truck fashions, which embody a number of variants. Nevertheless, different third-party knowledge corporations have mentioned the RAV4 topped gross sales of the Detroit pickups final 12 months when breaking out the fashions, such because the Ford F-150 from the bigger group.
Toyota’s days’ provide — an adjusted quantity based mostly on the speed of gross sales — has been among the many lowest within the automotive business, particularly for the RAV4.
Cox Automotive reviews Toyota’s current days’ provide is at 29 days and the RAV4 is among the many fastest-selling automobiles within the automotive business. The business common is 66 days, in accordance with Cox.
Templin mentioned the automaker has been conducting situation planning for various tariff and manufacturing outcomes, however the state of affairs stays fluid amid Trump’s commerce negotiations with different international locations.
“The worst factor for an business is uncertainty,” Templin mentioned. “Consistency is one of the best factor we might all ask for.”
