Toyota Motor revealed that the 2026 Toyota RAV4, the best-selling SUV in the United States, will be offered exclusively as a hybrid or plug-in hybrid model, marking the first time the vehicle will be available without a traditional gasoline-only engine. The updated RAV4 will retain its 2.5-liter four-cylinder engine but incorporate hybrid technology such as electric motors and batteries to boost fuel efficiency and performance. This move reflects the automaker’s long-standing commitment to hybrid vehicles, which have gained traction as a bridge between conventional combustion engines and full electric vehicles amid slower-than-expected adoption of all-electric cars.
Toyota, a pioneer in hybrid technology since the launch of the Prius in the late 1990s, continues to expand its electrified vehicle lineup in the U.S. In 2024, hybrids, plug-in hybrids, and fully electric vehicles accounted for 43.1% of Toyota’s 2.3 million U.S. sales. The RAV4’s sales increased by 9.3% last year, totaling nearly 475,200 units, driven in part by a 29.3% rise in hybrid sales and a 19.3% increase in plug-in hybrid sales. Hybrids made up roughly half of the RAV4’s sales in 2024.
Industry data shows that hybrid and electric vehicles together accounted for 20% of new car and truck sales in the U.S. last year, totaling 3.2 million electrified vehicles. This includes 1.9 million hybrids, including plug-in variants, and 1.3 million fully electric models. David Christ, head of the Toyota brand in North America, explained that the decision to make the RAV4 exclusively hybrid was influenced by strong customer demand and higher sales orders for hybrid variants. He emphasized that consumers and dealers are increasingly choosing hybrids, making it clear that the market is favoring electrified powertrains.
Toyota plans to expand its hybrid offerings further, including more plug-in hybrid electric vehicle models. Currently, seven Toyota vehicles, including the Camry, Prius, Sienna, and Sequoia, are sold exclusively as hybrids, with the RAV4 becoming the eighth model in this category. Last year, hybrids accounted for 44% of RAV4 sales, while plug-in hybrids represented 6.5%.
The redesigned 2026 RAV4, featuring updated exterior and interior designs, along with performance and technology enhancements, will reach U.S. dealerships later this year. Pricing details have not yet been released, but the current RAV4 starts at $30,645, with the hybrid variant beginning around $33,700, including delivery fees.
Since its introduction to the U.S. market in 1996, the RAV4’s sales have steadily grown, with 2024 marking a record year that made it the best-selling non-pickup vehicle in the country. The model faces challenges this year from tariffs, including a 25% tariff on vehicles and many auto parts imported into the U.S., which affects Toyota’s production and pricing strategies.
Toyota manufactures the RAV4 at its Kentucky plant but imports a majority of the vehicles sold in the U.S. from a facility in Ontario, Canada. Plug-in hybrid models are currently imported from Japan. Roughly half of Toyota’s U.S. sales are imported, including 84.3% of RAV4 models and the popular Tacoma midsize pickup from Mexico.
Mark Templin, Toyota Motor North America’s chief operating officer, indicated plans to increase RAV4 production in Kentucky to help mitigate tariff impacts, although no specific changes have been announced. He noted the RAV4’s status as the top-selling vehicle in the U.S. market, even surpassing the Ford F-150 in some sales reports. Given the vehicle’s high demand, Templin emphasized the need for multiple plants to meet production volume.
Toyota’s RAV4 is among the fastest-selling vehicles, with a days’ supply of just 29 days compared to the industry average of 66 days. Templin stressed the challenges tariffs create but underscored that industry stability and consistent policies would benefit all automakers moving forward.
READ MORE: