In a surprising turn of events, the Toyota RAV4 surpassed the Ford F-150 last year to become the best-selling vehicle in America. However, the company is now facing challenges regarding production due to tariffs imposed during the Trump administration, which could keep the production in the United States.
Currently, the RAV4 Hybrid is produced in Kentucky, but Toyota is preparing to release a redesigned version of the crossover later this year. Despite this, reports indicate that the new model will initially be imported from Canada and Japan. This plan is now under scrutiny due to the 25% tariff on automotive imports, which could incentivize Toyota to reconsider its production strategy.
According to Reuters, sources familiar with the matter have revealed that Toyota is exploring the possibility of manufacturing the new RAV4 in the U.S., potentially at Toyota Motor Manufacturing Kentucky. If approved, production could begin as early as 2027. However, Toyota has declined to comment on these speculations, stating only that they are focused on improving manufacturing processes to better serve both customers and employees.
The shift towards U.S.-based production isn’t solely driven by tariffs. The rising demand for the RAV4 is another key factor. Last year, sales of the RAV4 rose by 9.3%, totaling 475,193 units. Given the strong demand, Toyota may struggle to meet supply needs through Canadian and Japanese production alone. Additionally, U.S. production would help mitigate the impacts of currency fluctuations, particularly the yen.
While details about the upcoming RAV4 remain scarce, spy photos of the vehicle indicate significant design changes. The new model will feature a redesigned front end, inspired by the latest Toyota Camry, with a distinctive mesh grille, vertical air curtains, and C-shaped headlights. The body design will be more evolutionary, with a higher beltline, streamlined bodywork, and angular cladding, along with updated taillights and a more concealed exhaust system.
The 2026 RAV4 is expected to be built on Toyota’s TNGA platform and could potentially be a hybrid-only model, following in the footsteps of other models like the Camry and Sienna. The hybrid powertrain may include a 2.5-liter four-cylinder engine producing 225 hp, with an all-wheel drive version featuring a rear-mounted motor to provide increased power and traction, bringing the total output to 232 hp.
As Toyota continues to navigate these challenges, the future of RAV4 production remains uncertain, but the shift to U.S. manufacturing seems increasingly likely as the company looks to meet growing demand while navigating the complexities of international trade.
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Disclaimer: This news report is based on available sources and industry insights. Information regarding future production plans and vehicle specifications is subject to change and has not been officially confirmed by Toyota.
