Toyota Faces High Demand and Limited Supply for New Hybrid RAV4

Toyota Motor has a rare problem for an automaker: There is so much demand for its new RAV4 and the inventory is so limited that dealers only have a few days' supply.

"It is really unusual to see cars fly off the dealers' lots like this," said Jessica Caldwell, head of product insight at Edmunds. "It is not something that exists in that very practical, very suburban, small-midsize crossover segment."

At Colonial Toyota in Milford, Connecticut, the lack of RAV4s has left owner Bobby Crabtree with several open spots for new vehicles at his dealership.

"This lot can handle another 250 vehicles, so I am probably about a third full of that capacity," Crabtree said as he looked out at scores of new and used Toyotas.

Not all of those open spaces would be filled with new RAV4s during normal times, but there certainly would be more, he said.

Toyota's RAV4 has been a red-hot model over the past several years, with almost 480,000 sold in the U.S. last year. It was the third best-selling model in the country in 2025 behind the Ford F-150 and Chevrolet Silverado, two full-size pickups that have been top sellers for years, according to Cox Automotive.

When Toyota announced it would be rolling out new versions of the RAV4, two things stood out. First, the crossover utility vehicle would only be sold as a hybrid. Second, production would be limited at first and then steadily increase. In other words, there would not be the normal allotment of new RAV4s at dealerships.

That has not stopped buyers like Nancy and Ira Berman of Danbury, Connecticut. When they ordered their RAV4 in March, they knew they would be waiting a while before they got their new SUV.

"The wait was a slight annoyance," said Nancy Berman. "It didn't stop us from going and doing this because we do have our other Toyotas to drive."

Six months after placing their order, the Bermans will soon get their new RAV4.

For Toyota, the shift to an all-hybrid RAV4 lineup comes as more buyers are pivoting to those types of cars due to gas prices that remain elevated. In 2026, more than 18% of the vehicles sold in the U.S. have been hybrids, according to J.D. Power, still well behind the 75% of vehicles with internal combustion engines but above the 7% of pure electric vehicles.

With dealers unable to stock their lots with new RAV4s and customers being told they will have to wait weeks or perhaps even months for a vehicle, it raises the question of whether Toyota could lose sales. So far, Toyota's U.S. sales in 2026 are still up 0.3% through July. Given the appeal of the RAV4, Caldwell said the impact of dealers having a limited supply is likely limited.

"There are other vehicles within the Toyota lineup that consumers can go to," Caldwell said. "Toyota has a lot of brand loyalty, people who buy a Toyota usually stay with Toyota for many years not just one vehicle purchase but several."