- The dramatic move follows Toyota’s change to all-hybrid last year with the Camry, America’s No. 1 midsize sedan.
- An outdoorsy new Woodland model will be available as a hybrid or PHEV. AWD will be standard.
America’s bestselling non-pickup will switch to an all-hybrid lineup when the 2026 Toyota RAV4 compact SUV goes on sale later this year.
The dramatic move follows Toyota’s change to all-hybrid last year with the Camry, America’s No. 1 midsize sedan.
Toyota is dramatically increasing sales of hybrid and electric vehicles at the same time the company says U.S. tariffs will raise prices and make it harder for people to afford a new vehicle.
“A 25% tariff is not sustainable long term without significant price increases,” Toyota North America Executive Vice President and Chief Operating Officer Mark Templin said at the company’s sprawling headquarter complex in Plano, Texas. “They put a new car out of reach of many consumers.”
The new RAV4 lineup will include plug-in hybrid (PHEV) and performance GR-Sport models as the automaker looks to expand sales of its franchise vehicle. The PHEVs will produce 320 horsepower, up from 302 for the 2025 RAV4. The sporty GR-Sport will be a PHEV.
For the first time, hybrids will be available on front- and all-wheel models.
An outdoorsy new Woodland model will be available as a hybrid or PHEV. AWD will be standard.
Toyota will announce electric range, fuel economy and prices closer to when sales begin.
Key features:
Toyota’s "hammerhead" grille and front lights are new, along with LED taillights.
The interior features a 10.5- or 12.9-inch touch screen, depending on trim level. Digital climate controls are integrated into the bottom of the screen.
A 12.3-inch digital instrument replaces 7-inch mechanical gauges. Upper trim levels will get a toggle-switch gear selector.
The RAV4’s dimensions don’t change, but the body grew stiffer to reduce noise and improve ride and handling.
Contact Mark Phelan: mmphelan@freepress.com. Follow him on Twitter @mark_phelan. Read more on autos and sign up for our autos newsletter. Become a subscriber.
