The Toyota RAV4 is, by a huge margin, the Japanese automaker’s best-selling vehicle in the US. It sold 475,193 of them last year alone, an increase of more than 40,000. Not only that, but the RAV4 outsold the next-best Camry by 165,317 units. The SUV is a big deal for the automaker, and the company is going to want to keep it that way if it can. Toyota has a bit of a problem, though. Production of the RAV4 is spread across Japan, Canada and the US, with just the hybrid built in the US. With the Trump administration instituting 25% tariffs on imported cars, that presents a problem, and according to Reuters, it’s a factor that has Toyota considering some production changes.
The Production Split May Shift To America
According to the news outlet, Toyota was planning on still exporting a large portion of its RAV4s from the Japanese and Canadian plants for the US market. Though that could drive the price up on the popular SUV with tariffs. Additionally, Reuters reports that some sources at Toyota reported that those facilities might not be able to keep up with demand. In fact, a Toyota executive said that even the current model is limited by production, suggesting that the company could top 500,000 units a year if it could build them. So, the company is considering adding production capacity at the plant in Kentucky.
That factory, in addition to the RAV4 hybrid, also builds the Camry and its twin the Lexus ES. It also builds four- and six-cylinder engines and a wide array of other mechanical parts. It’s currently able to build 550,000 vehicles and 600,000 engines a year, and it has been operational since 1988. Reuters didn’t say whether additional RAV4 capacity would come at the cost of another model, or if it would expand the plant. If the company does expand production there, Reuters says it would start with the next-generation RAV4. Even with expansion in the US, the outlet says that some examples would still be coming from Japan and Canada.
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An all-new RAV4 is on the horizon, and Toyota will have to get it right to keep its best-selling title.
What To Expect From The Next RAV4
In regards to the next-generation RAV4, the same Toyota executive that noted the production limits also hinted that it may not be hugely different from the current one. Photos of a Chinese-market version of the RAV4 also suggest this, showing a vehicle clearly closely based on the current SUV, but with new styling. So, the next RAV4 may follow the path of the latest Camry with updated powertrains and styling, but still using an old platform. In fact, we could easily see the RAV4 adopting the Camry’s updated hybrid 2.5-liter four-cylinder, which now makes 225 horsepower. This might help make additional production easier to implement, since it won’t be drastically different. We’re expecting the model to make its appearance sometime this year in time for a 2026 model year introduction.
Source: Reuters
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