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Toyota RAV4 faces supply shortages and heavy competition from Honda CR-V in 2026 model year

Toyota is experiencing a significant supply shortage for the 2026 RAV4, a vehicle that has historically been a top seller in the United States. The shortage is primarily caused by the transition to an all-hybrid powertrain, which required extensive retooling of production plants in North America and Japan. This transition has resulted in a production deficit that Toyota estimates will cost the company nearly 55,000 sales this year. Due to the limited supply, some dealers have applied significant markups to the 2026 RAV4, while the Honda CR-V has gained market share. The Honda CR-V is on pace to become the best-selling non-pickup in the United States for 2026, while the RAV4 has fallen to roughly eighth place on the sales charts. The 2026 RAV4 offers a variety of hybrid and plug-in hybrid options, including a plug-in hybrid model that provides up to 54 miles of all-electric range. In head-to-head testing, the RAV4 plug-in hybrid outperformed the Hyundai Tucson plug-in hybrid in terms of all-electric range and fuel economy, though the Hyundai model offered more comfortable seating and a higher-quality interior.

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