Toyota Motor has announced that it will discontinue traditional gas engines and only offer its popular SUV, the RAV4, as a hybrid or plug-in hybrid model starting from 2026. The move comes after slower-than-expected adoption of all-electric vehicles, with automakers instead focusing on hybrid models to meet fuel economy regulations.
The decision was made due to high demand for the hybrid variant, which accounted for 44% of RAV4 sales last year. Toyota plans to expand its production at its Kentucky plant and increase hybrid offerings, including plug-in models.
RAV4 sales have increased by 9.3% last year, with hybrids making up roughly half of total sales. The move is part of a next-generation redesign that includes interior and exterior design changes, as well as upgrades to performance and technologies.
While pricing details were not disclosed, the current RAV4 starts at $30,645, with the hybrid variant starting at around $33,700. Toyota faces challenges from tariffs imposed by President Donald Trump, which affects the importation of vehicles and parts.
Chief operating officer Mark Templin stated that the company will adapt to the changing market conditions and increase production at its Kentucky plant. The RAV4 is expected to be a top-seller, with a days’ supply among the lowest in the industry, indicating high demand for the vehicle.
Source: https://www.cnbc.com/2025/05/20/toyota-2026-rav4-hybrid.html