From Yahoo Finance: 2025-05-21 23:12:00

Toyota Motor Corporation will only sell the 2026 RAV4 SUV as a hybrid or plug-in hybrid, discontinuing gas-powered models. Strong demand for hybrids led to 44% of RAV4 sales being hybrids in 2024. The switch to hybrid-only models aligns with Toyota’s expanding lineup of hybrid vehicles.

The decision to switch to hybrid-only RAV4 models coincides with rising tariffs and slow adoption of all-electric vehicles under President Trump. 84.3% of RAV4s sold in the U.S. are imported, mainly from Canada and Japan. Toyota may increase RAV4 production in Kentucky but has not disclosed tariff mitigation plans.

The RAV4 remains a best-selling vehicle with high demand and low inventory. Toyota’s move to hybrid-only models is part of its strategy to expand its lineup of hybrid vehicles. The company’s COO hinted at boosting RAV4 production in Kentucky.

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Read more: Toyota Redesigns America’s Best-Selling RAV4 SUV to be Fully Hybrid