Here's How Toyota Made a 100% Hybrid 2026 RAV4 Lineup Possible

Toyota has bulked up its North American supply chain to make the all-hybrid 2026 RAV4 lineup a reality.

One of the biggest bits of news to come out of the biggest new-vehicle reveal of the year— the 2026 Toyota RAV4—is that every single model will now be a hybrid. This is great news for those who like to save gas, but as many who have tried to order a RAV4 hybrid from a dealership will tell you, there are wait times associated with the electrified powertrain.

Through the first quarter of 2025, Toyota USA sold 115,402 RAV4s, with very nearly half (55,868 units) being electrified. Canada's split is roughly similar: 4,470 hybrid and plug-in hybrid RAV4s out of 9,442 sales. How is the brand going to make the switch to full hybrid without seeing a major dip in sales figures for North America's best-selling SUV? At the reveal event, we asked Frank Voss, recent president of Toyota Motor Manufacturing Canada and newly minted president of Toyota Motor Manufacturing, Texas.

"We have localized the supply chain. Batteries are coming out of North Carolina. We basically brought (hybrid system) Gen 5 here. Motors are local. The powertrain is being localized," explained Voss. "It gives us a lot more flexibility to be able to accommodate need. The Canada plant is going to be at capacity. Of course, we are going to keep Kentucky in the fold, Kentucky is going to produce hybrids. Those two plants together, hopefully will provide enough volume so that we can overcome this shortage we've been struggling with for so long."

"The Gen 5 hybrid system is on Camry today," adds Scott MacKenzie, director of Corporate and External Affairs at Toyota Canada. "So the batteries for Camry are coming out of North Carolina. The motors are coming from North America. So the powertrain to Frank's point is localized, and it's not moving from A to B, it's A and B, so we've just got overall more capacity."

The other advantage is on Toyota's side, where simplification can further streamline production. "It helps us as well, because reducing powertrain variations helps us be more efficient," explains Voss. "So in the plant we can save space, we can make processes to be more dedicated."

Voss then talked about the driving experience advantages that come with a hybrid powertrain, something we here at AutoGuide have long agreed with. In fact, in most every case where a Toyota (or Lexus) is offered with a hybrid powertrain, that is our recommended choice, for the smoothness, low-speed responses, and yes the fuel savings.

While we suspect some buyers might be turned off by the lack of gas-only trims, especially the loss of a mechanical AWD system for the e-AWD setup in the '26 RAV4, history shows the move to hybrid-only hasn't hurt Sienna or Camry sales. We'll see how the market responds to its favorite SUV when the 2026 RAV4 starts rolling into dealerships later this year.

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