Toyota RAV4 sales fall 29% in 2026, but demand isn’t the problem

The RAV4 is a very popular car in the United States and is also in high demand. Despite this, sales began to decline in 2026, and not by a little. As a reminder, in 2025, Toyota moved 479,288 RAV4s in the United States – the best year on record for this model. However, in 2026, from January to September, this figure has now fallen to just 253,664 RAV4s. Of course, the year is not over yet, but this figure is still lower than last year’s 358,134 units for the same period. This is a notable drop of 29.2%.

Buyers are still lining up to get a RAV4. In fact, according to Motor Intelligence, while dealers held about 51 days of inventory for the average car in September, the RAV4 was moving so quickly that dealers could only hold four days of inventory. Clearly, interest has not faded, and when demand exists, the response then shifts to supply.

Last year’s record was also achieved as Toyota continued to offer 2025 RAV4s. That came with a tradeoff: Because last year’s builds were aimed at the 2025 model year and factories continued to operate, the 2026 model’s facelifts were delayed. In fact, Toyota’s two plants in Ontario were only able to build a few RAV4s in January and February, since they were undergoing upgrades during that time. Car manufacturers protect themselves against the time it takes for renovations by having a stock of the outgoing model. But Toyota still struggles to achieve this, simply because it sells so well.

Where have the missing RAV4s gone?

Aside from the production issue, it’s important to point out that the RAV4’s engine lineup itself has changed this year. The 2026 RAV4 actually abandoned the pure gasoline version for the first time. Instead, you now only get hybrid and plug-in hybrid powertrains. That’s a big change considering how well gas-only models sold last year. In fact, from January to September 2025, approximately 201,912 of those 358,134 units were gas-only. But with hybrids in short supply, buyers who otherwise would have bought the gas variant are stuck.

Without gasoline, RAV4 hybrids are selling much better, up 43.6% through September. Meanwhile, according to AutoForecast Solutions, production of the North American RAV4 fell 30% through September of this year.

Hybrids are just too hard to resist with today’s gas prices. As of September 2026, the price of regular gasoline averaged $4.36 per gallon nationwide, according to the Bureau of Transportation Statistics. This represents a significant increase of 37.6% from $3.17 per gallon last year. The hybrid relieves that pressure with its combined mpg ratings of 41 to 43 – significantly higher than the 30 mpg the 2025 gasoline powertrain could manage.

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