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[BUSINESS] · Japan, United States · 2 sources

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Toyota RAV4 2026 model faces production cuts amid Middle East tensions

Toyota unveiled the 2026 RAV4 Plug‑in Hybrid GR Sport, a compact SUV equipped with a 2.5‑liter four‑cylinder engine, 324 hp total output and standard all‑wheel drive. The PHEV version can travel up to 52 miles on electric power alone, offers a spacious five‑seat cabin, 33.6 cu ft of cargo space and towing capacity of 3,500 lb, and features a new 5G‑enabled infotainment system.

The automaker later announced it will cut the production of RAV4 internal‑combustion models by nearly 100 000 units through November, extending the impact into early 2027. The reduction stems from geopolitical instability in the Middle East, high fuel prices and weakened demand in the MENA region and East Asia. Despite the cuts, U.S. dealers report long waiting lists, and Toyota plans to boost RAV4 and Land Cruiser output in Japan by 4,200 units to partially offset the shortfall, while also adjusting volumes of other models in China.