Toyota Slashes RAV4 Output as Dealers Burn Through Stock in Hours

Toyota is scaling back global production by 100,000 units through February 2027, with its best-selling RAV4 taking a major hit. The cuts come as the automaker grapples with weak demand in the Middle East and East Asia, where high fuel prices have dampened new-vehicle sales. Standard gasoline-powered RAV4 models are among those facing reduced output, despite hybrid RAV4 production recently resuming at Toyota’s Kentucky plant after delays.

The company had already warned of roughly 55,000 lost RAV4 sales in the US this year due to supply chain disruptions. Toyota is offsetting some of the overseas cuts by boosting RAV4 and Land Cruiser 250 production in Japan by 4,200 units in the second half of its current fiscal year. The move won’t ease the pressure on dealers, who are already struggling to keep up with surging RAV4 demand.

Some dealerships report having hundreds of customers on waiting lists, while others are seeing RAV4 inventory turn over in hours rather than days. The production cuts extend beyond the RAV4, with key China-market models like the bZ3X, bZ7, and Chinese-spec Camry also affected. Toyota’s struggles in China are particularly acute, as its latest EVs have failed to compete with local brands like BYD, Nio, and Xiaomi, forcing the automaker to rethink its sales strategy in the region.

The company had previously flagged that geopolitical tensions—including the conflict in Iran and disruptions at the Strait of Hormuz—would remove 83,000 vehicles from its overseas production schedule by November, but the cuts are now confirmed to continue into 2025 and beyond.