Toyota bets the farm on the new RAV4 — and the gasoline era is officially over

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Toyota is pushing the new RAV4 onto full production rails, and for the brand this is much more than a routine generation change. The RAV4 is one of Toyota’s biggest sellers in North America, so any pause for plant retooling instantly turns into a headache for dealers and buyers.

The sixth-generation RAV4 is fundamentally different on the powertrain side. In the US, the model is no longer offered with a conventional gasoline engine: only hybrid and plug-in hybrid. The base hybrid with front-wheel drive delivers 226 hp, the AWD version — 236 hp, while the plug-in hybrid pushes 324 hp and can cover around 80 km on electric power alone. For the PHEV XSE and Woodland grades, Toyota promises fast charging from 10 to 80% in roughly 30 minutes.

The production transition has been painful. Toyota had to reconfigure capacity in Canada, the US and Japan, and Canada plays a key role in supplying the RAV4 for North America. Toyota Motor Manufacturing Canada in Woodstock and a second site in Cambridge are already building the sixth-generation RAV4 — the retooling cost roughly 1.1 billion dollars. The model switch has temporarily squeezed availability: the old gasoline versions are on their way out, while the new hybrids cannot yet meet demand everywhere.

The RAV4 is becoming more expensive and more technologically advanced, but buying one quickly may be tricky. In the US, the hybrid lineup starts at $33,350 for the base LE and climbs to $44,750 for the top Limited. The plug-in hybrid is traditionally even pricier — up to $49,950 for the new GR Sport.

Toyota is taking this risk with eyes wide open. The hybrid RAV4 delivers better fuel economy, strong residual value and does not demand a charging infrastructure the way a pure EV does. The PHEV covers the upper end of demand — for those who want to drive around town on electric power but are not ready to give up the gasoline safety net. This is a direct answer not only to the Honda CR-V Hybrid and Hyundai Tucson Hybrid, but also to Chinese PHEV crossovers, which are growing fast in various regions.

The RAV4 remains a strong brand, but now it has to prove its value through more than just reliability. Toyota is essentially telling the buyer: the gasoline era for this crossover is over, and from here on it is electrified power only.