Toyota Says RAV4 Shortage Will Cost It Nearly 55,000 Sales

The Waitlist Keeps Growing

The Toyota RAV4 has been a major success story in the U.S., ending the Ford F-150's decades-long reign as America's best-selling individual model in 2024. However, the compact crossover experienced a production slowdown during the launch of the redesigned 2026 model, affecting sales and leaving dealerships with long customer waitlists.

But now, Toyota has announced that production of the 2026 RAV4 Hybrid has already begun at its Georgetown plant in Kentucky, which Automotive News reports could assemble 40,000 units this year. That should be a welcome addition, as the publication noted that Longo Toyota in California has more than 800 customers waiting for an allocation, while Earl Stewart Toyota in Florida presold all 40 new units listed on its website weeks or months before delivery.

Demand Through The Roof

Demand overwhelmed supply partly because plants in Canada and Japan that produce U.S.-bound RAV4s underwent retooling to support the model's shift to a hybrid-only lineup for 2026. Toyota also carried out extensive validation work to ensure production quality, including more than 700,000 miles of testing and fine-tuning.

As a result of the inventory shortage, Toyota estimates the RAV4 will finish the year down nearly 55,000 sales in the U.S. Even so, George Haddad, chairman of the Toyota National Dealer Advisory Council, remained optimistic, saying the temporary slowdown would be “worth it” in the long run.

After all, hybrids have become a safer bet for automakers as EV demand softened following the end of the $7,500 federal tax credit last year. Rising gas prices have also pushed more buyers toward fuel-efficient options, and the RAV4 offers both conventional hybrid and plug-in hybrid variants.

Ready To Compete

The 2026 Toyota RAV4 starts at $31,900, excluding destination fees. It comes standard with a 2.5-liter hybrid four-cylinder powertrain, with the all-wheel-drive hybrid variants producing a slightly higher 236 horsepower. Key rivals include the Honda CR-V and Hyundai Tucson.

In addition to starting production of the latest RAV4, the Georgetown plant also broke ground on a new paint facility that promises to reduce carbon emissions by 30% and save around 1.5 million gallons of water annually. The plant has received $2 billion in investment over the past two years, supporting other models built at the facility, including the upcoming three-row Highlander EV.

View the full article