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Toyota's 2026 RAV4 SUV to Have Hybrid and Plug-In Hybrid Options Only
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Toyota Motor Corporation (TM - Free Report) has revealed that the 2026 RAV4 will be offered exclusively as an electrified vehicle as part of a redesign of its top-selling SUV. Buyers will be able to choose between a hybrid electric vehicle or a plug-in hybrid electric vehicle, along with three new design variants.
Both versions of the 2026 RAV4 will feature a 2.5-liter four-cylinder engine. The standard hybrid will deliver 226 horsepower with front-wheel drive and 236 horsepower with all-wheel drive. The plug-in hybrid version will increase output to 320 horsepower, up from 302 hp in the previous model. The sixth-generation RAV4 will be available in Core, Rugged and Sport styles, and offered in seven different trim levels. Other updates include a new touchscreen display, a six-speaker audio system and enhancements to the vehicle’s safety features.
The 2026 RAV4 is expected to arrive at dealerships across the United States later this year. Since its U.S. debut in 1996, the RAV4 has gone through five generations, evolving with the changing needs of drivers. The new sixth-generation continues that tradition with a renewed focus on functionality and agility.
Despite Toyota selling more than 10.2 million vehicles globally in fiscal 2025, including Lexus, only around 145,000 of those were fully electric, representing just 1% of total sales. By contrast, EVs accounted for about 14% of all global vehicle sales in 2024.
Last September, Nikkei reported that Toyota had told suppliers it would cut its EV production target by 20%, reducing it from 1.5 million to 1 million units by 2026. Toyota has been known for its cautious approach toward fully electric vehicles, often resisting the shift that many other automakers have embraced. However, the company has started to unveil several new EVs and related technologies, signaling a shift in strategy.
Toyota’s New Launches & Sales Target
By 2027, Toyota aims to launch 10 new EVs in key global markets. In Europe, the automaker has introduced the Urban Cruiser and C-HR+ electric SUVs, which will be sold alongside the updated bZ4X. Production of Toyota’s first three-row electric SUV for the United States will begin next year in Kentucky and Indiana. Battery shipments have also started from Toyota’s new North Carolina facility, its first overseas in-house battery plant.
In China, Toyota launched its most affordable EV, the bZ3X, in March, starting at just over $15,000. The company plans to launch the bZ7 and the Lexus ES EV by mid-2026 to regain ground in the Chinese market, the largest EV market in the world. Earlier this year, the bZ4X was the best-selling EV in Norway, a leading EV-adoption country.
Toyota expects to sell 9.8 million vehicles globally this fiscal year, up from 9.36 million in the previous year. Combined Toyota and Lexus sales are projected to hit 10.4 million units, a 1.2% increase from fiscal 2025, driven by improved production capacity. Electrified vehicle sales are forecasted to rise to 5.18 million units, up from 4.75 million the previous year.
The Zacks Consensus Estimate for RACE’s 2025 sales and earnings implies year-over-year growth of 12.37% and 4.8%, respectively. EPS estimates for 2025 and 2026 have improved 30 cents and 36 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for STRT’s fiscal 2025 sales and earnings implies year-over-year growth of 3.49% and 8.11%, respectively. EPS estimates for fiscal 2025 and 2026 have improved 73 cents and 91 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for MGDDY’s 2025 sales and earnings implies year-over-year growth of 0.43% and 37.76%, respectively. EPS estimates for 2025 and 2026 have improved a penny and 4 cents, respectively, in the past seven days.
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Toyota's 2026 RAV4 SUV to Have Hybrid and Plug-In Hybrid Options Only
Toyota Motor Corporation (TM - Free Report) has revealed that the 2026 RAV4 will be offered exclusively as an electrified vehicle as part of a redesign of its top-selling SUV. Buyers will be able to choose between a hybrid electric vehicle or a plug-in hybrid electric vehicle, along with three new design variants.
Both versions of the 2026 RAV4 will feature a 2.5-liter four-cylinder engine. The standard hybrid will deliver 226 horsepower with front-wheel drive and 236 horsepower with all-wheel drive. The plug-in hybrid version will increase output to 320 horsepower, up from 302 hp in the previous model. The sixth-generation RAV4 will be available in Core, Rugged and Sport styles, and offered in seven different trim levels. Other updates include a new touchscreen display, a six-speaker audio system and enhancements to the vehicle’s safety features.
The 2026 RAV4 is expected to arrive at dealerships across the United States later this year. Since its U.S. debut in 1996, the RAV4 has gone through five generations, evolving with the changing needs of drivers. The new sixth-generation continues that tradition with a renewed focus on functionality and agility.
Despite Toyota selling more than 10.2 million vehicles globally in fiscal 2025, including Lexus, only around 145,000 of those were fully electric, representing just 1% of total sales. By contrast, EVs accounted for about 14% of all global vehicle sales in 2024.
Last September, Nikkei reported that Toyota had told suppliers it would cut its EV production target by 20%, reducing it from 1.5 million to 1 million units by 2026. Toyota has been known for its cautious approach toward fully electric vehicles, often resisting the shift that many other automakers have embraced. However, the company has started to unveil several new EVs and related technologies, signaling a shift in strategy.
Toyota’s New Launches & Sales Target
By 2027, Toyota aims to launch 10 new EVs in key global markets. In Europe, the automaker has introduced the Urban Cruiser and C-HR+ electric SUVs, which will be sold alongside the updated bZ4X. Production of Toyota’s first three-row electric SUV for the United States will begin next year in Kentucky and Indiana. Battery shipments have also started from Toyota’s new North Carolina facility, its first overseas in-house battery plant.
In China, Toyota launched its most affordable EV, the bZ3X, in March, starting at just over $15,000. The company plans to launch the bZ7 and the Lexus ES EV by mid-2026 to regain ground in the Chinese market, the largest EV market in the world. Earlier this year, the bZ4X was the best-selling EV in Norway, a leading EV-adoption country.
Toyota expects to sell 9.8 million vehicles globally this fiscal year, up from 9.36 million in the previous year. Combined Toyota and Lexus sales are projected to hit 10.4 million units, a 1.2% increase from fiscal 2025, driven by improved production capacity. Electrified vehicle sales are forecasted to rise to 5.18 million units, up from 4.75 million the previous year.
TM’s Zacks Rank & Key Picks
TM carries a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks in the auto space are Ferrari N.V. (RACE - Free Report) , Strattec Security Corporation (STRT - Free Report) and Michelin (MGDDY - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for RACE’s 2025 sales and earnings implies year-over-year growth of 12.37% and 4.8%, respectively. EPS estimates for 2025 and 2026 have improved 30 cents and 36 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for STRT’s fiscal 2025 sales and earnings implies year-over-year growth of 3.49% and 8.11%, respectively. EPS estimates for fiscal 2025 and 2026 have improved 73 cents and 91 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for MGDDY’s 2025 sales and earnings implies year-over-year growth of 0.43% and 37.76%, respectively. EPS estimates for 2025 and 2026 have improved a penny and 4 cents, respectively, in the past seven days.