Toyota redesigns top-selling RAV4 SUV as hybrid-only model in 2026

Toyota Motor has announced that the 2026 RAV4, the most popular SUV in the United States, will be offered exclusively as a hybrid or plug-in hybrid. The move marks a major step in the company’s electrification strategy, as the traditional gasoline-only option will be phased out for the next generation of the model.

The announcement was made on Tuesday night at Toyota’s North American headquarters in Plano, Texas. The redesigned RAV4 will continue to feature a 2.5-liter four-cylinder engine, but it will now be integrated with hybrid technology such as electric motors and batteries.

Toyota, the world’s largest automaker, has long been a leader in hybrid vehicles, dating back to the launch of the Prius in the late 1990s. The company has resisted the industry-wide push for all-electric vehicles by continuing to invest in hybrid systems that offer a balance between performance and fuel efficiency. In 2024, 43.1% of Toyota’s 2.3 million U.S. vehicle sales came from electrified models, including hybrids, plug-in hybrids, and EVs.

Sales of the RAV4 rose by 9.3% last year, reaching nearly 475,200 units. Of that number, 44% were hybrids and 6.5% were plug-in hybrid models. Toyota executives said the rising demand for hybrid options influenced the decision to go hybrid-only for the new model.

David Christ, head of Toyota’s North American brand division, said customer feedback and dealer interest made it clear that the hybrid RAV4 was already the top choice. “The hybrid is faster turning; it has more sales orders on it, and the consumers and dealers are asking for it,” he said.

The new RAV4 joins a growing list of Toyota models that are offered exclusively as hybrids, including the Camry, Prius, Sienna, and Sequoia. RAV4 will become the eighth vehicle in that group when it arrives in dealerships later this year. Pricing details were not revealed, but the current base model RAV4 starts at $30,645, while the hybrid version begins at approximately $33,700, including delivery fees.

The 2026 RAV4 features a full redesign with updates to both the exterior and interior, along with enhancements to performance and technology. The aim is to keep the vehicle competitive as the market for electrified vehicles continues to grow. Last year, combined sales of electric and hybrid vehicles reached a record 20% of all new car sales in the U.S., with 1.9 million hybrid units sold.

Toyota may face additional challenges in the U.S. market due to ongoing tariffs under President Donald Trump’s administration. A 25% tariff applies to imported vehicles and parts, and while some RAV4s are assembled in Kentucky, the majority are produced in Ontario, Canada. Plug-in models are imported from Japan.

Mark Templin, Chief Operating Officer of Toyota Motor North America, said the company may increase production in Kentucky but did not confirm any formal changes. He added that Toyota is exploring multiple scenarios to adapt to trade developments, noting that consistency in policy would benefit the entire auto industry.