Toyota has begun production of the all-new RAV4 Hybrid at its Georgetown, Kentucky, plant as it works to meet strong consumer demand for the SUV.
The details: The launch marks a major milestone in Toyota's U.S. manufacturing expansion, adding hybrid RAV4 production to the Kentucky facility.
Production of the hybrid SUV at the Georgetown plant is part of more than $2 billion in investments Toyota has announced over the past two years.
The project also includes the groundbreaking of the automaker's next-generation paint facility, designed to improve efficiency and production flexibility.
What they’re saying: “Making our customers smile by delivering high-quality vehicles like the all-new RAV4 Hybrid has been our legacy for 40 years,” said Kerry Creech, president of Toyota Kentucky, per a press statement. “The milestones we celebrate today reflect our team’s commitment to sustainability and our unwavering promise to continue to deliver vehicles our customers love.”
Why it matters: Adding RAV4 Hybrid production in Kentucky should help Toyota better align supply with demand for one of the industry's most sought-after vehicles, easing inventory constraints and shortening wait times for customers.
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Between the lines: The production launch follows inventory shortages and allocation challenges that affected RAV4 availability in 2025.
Toyota sold nearly 500,000 RAV4s in the U.S. in 2024, making it the best-selling vehicle in the market regardless of segment.
The Georgetown plant is expected to build 40,000 RAV4 Hybrids this year, while Longo Toyota in California has reported more than 800 customers waiting for allocation, according to AutoBlog.
Bottom line: Toyota's decision to expand RAV4 Hybrid production in the U.S. should improve availability of one of the market's top-selling vehicles, create additional sales opportunities for dealers, and help to reduce lost sales tied to inventory challenges.
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