Reuters has reported that Toyota is considering U.S. production for the next-gen RAV4, as it looks to reduce the impact of rising import tariffs on vehicles.
Currently built in Kentucky, USA, Woodstock, Canada, and Takaoka, Japan, the next-gen RAV4 was originally set to continue shipping from Japan and Canada for U.S. customers. However, strong demand and trade pressures have prompted Toyota to consider shifting some output to Kentucky, although no final decision has been made.
As expected, the report says that Toyota will unveil the sixth-generation RAV4 later this year, with a gradual global rollout. If the company were to assign new RAV4 production to Kentucky, it’s unlikely to begin before 2027 as retooling the factory and building a local supply chain would take time. Toyota’s Canadian output is expected to continue regardless of the decision.
Exterior
The upcoming compact SUV adopts a more adventurous look, drawing from recent models like the bZ4X and Prius. Key changes observed in test prototypes include a hammerhead shark-inspired front, Y-shaped side creases, and a unique perforated grille. The front features C-shaped DRLs with vertical LED projectors and polygonal bumper wings.
At the side, trapezoidal arches and flush roof rails remain, while the glasshouse becomes curvier. The rear gets sleeker lights, a new rectangular plate garnish, and aerodynamic tweaks like a large spoiler and side fins near the windshield.
Cabin
Inside, the 2026 RAV4 Hybrid should sport features like a panoramic sunroof, gesture-activated tailgate, digital key, all-digital gauge cluster, Toyota Audio Multimedia system, USB-C ports, wireless phone charger, and 360-degree camera. Expect improved front seats with 8-way power and memory, and a new steering wheel design similar to the 2025 Camry. Cabin and cargo space should remain at current levels, while the crossover should upgrade to the TSS 3.0 safety suite.
Under The Hood
Like the new Lexus ES, the next-gen RAV4 is expected to ride on a revised version of the TNGA-K platform. Likewise, we expect Toyota to install a refined version of the 2.5L Dynamic Force gas engine in the hybrid and plug-in hybrid versions which are expected to play an even bigger role in the new model family, with similar fuel efficiency figures, and slightly better electric mode range.
Pricing & Launch
While the full impact of tariffs is yet to be ascertained, we expect the new Toyota RAV4 Hybrid to be priced at under USD 35,000 in the U.S., while the new RAV4 Plug-in Hybrid is expected to begin at around USD 45,000. The revised models are expected at dealers for MY2026, and an official announcement is expected during the second half of the year.
An automobile engineer by training, I’ve analyzed the global car market since 2005, with a keen focus on EVs since 2008. My journey in online automotive publishing spans 17 years, during which I have reviewed cutting-edge automotive technologies and interviewed leading global CEOs and vehicle developers.
