Toyota Motor has announced that the next-generation RAV4, arriving in 2026, will be offered exclusively as a hybrid or plug-in hybrid model. The decision eliminates the traditional gasoline-only variant, signaling a significant shift in the automaker’s commitment to vehicle electrification.
The announcement took place Tuesday evening at Toyota’s North American base in Plano, Texas. The new RAV4 will retain its 2.5-liter four-cylinder engine, now paired with hybrid systems that include electric motors and battery packs.
Toyota, the world’s largest automaker, has remained committed to hybrid technology ever since it introduced the Prius in the late 1990s. While many competitors have pivoted toward fully electric models, Toyota has continued to promote hybrids for their blend of efficiency and performance. In 2024, nearly 43.1% of Toyota’s U.S. Out of Toyota’s 2.3 million vehicle sales, a significant portion came from electrified models, including hybrids, plug-in hybrids, and fully electric vehicles.
RAV4 sales climbed 9.3% in the previous year, hitting around 475,200 units. Among these, hybrids accounted for 44%, and plug-in hybrids represented 6.5%. Toyota leadership cited this growing preference as the reason for the shift to an all-hybrid RAV4 lineup.
David Christ, who heads Toyota’s North American brand group, emphasized that customers and dealers have shown a strong preference for the hybrid version. “It’s the fastest-selling variant, with higher demand from both buyers and retailers,” he said.
With this change, the RAV4 joins a group of Toyota models already sold only in hybrid form, such as the Camry, Prius, Sienna, and Sequoia. When it launches later this year, the RAV4 will become the eighth hybrid-only model in Toyota’s U.S. lineup. Pricing hasn’t been disclosed yet, though the current base RAV4 starts at $30,645, while the hybrid edition begins around $33,700, including delivery charges.
The 2026 redesign introduces updates to the RAV4’s exterior and interior, as well as improvements in performance and onboard technology. These upgrades aim to keep the vehicle appealing as hybrid and electric models continue gaining market share. In 2023, electrified vehicles made up 20% of all new car sales in the United States, with 1.9 million hybrids sold.
However, Toyota may encounter obstacles related to ongoing trade tariffs under policies from the Trump administration, which include a 25% duty on imported vehicles and components. Although some RAV4 units are manufactured in Kentucky, the majority come from Canada, and plug-in versions are imported from Japan.
Mark Templin, Chief Operating Officer of Toyota Motor North America, mentioned that the company is evaluating potential increases in U.S. production but did not confirm any specific plans. He added that greater policy stability would help automakers better navigate the evolving trade environment.
