Toyota doubles down on hybrid technology in Ontario-produced SUVs

Toyota Canada transitions away from gas-only models to hybrid and plug-in hybrid models of RAV4.

The largest automotive manufacturer in Southwestern Ontario will no longer produce gas-only models.

Toyota Canada has confirmed that its next-generation RAV4 – built in Woodstock and Cambridge – will only be available in hybrid and plug-in hybrid models.

An industry insider is not surprised.

“No, no, this was the plan. The hybrids are selling like hotcakes, and it is an easy little add-on for the consumer,” said Brendan Sweeney of the Trillium Network for Advanced Manufacturing.

Toyota Canada reported record sales of the current RAV4 Hybrid, with 4,470 sold in March. That compares to 4,331 gas models purchased.

Sweeney believes the end of the gas-only model will not dampen production or employment levels.

“The hybrid is a nice thing because it has more stuff in it. So, they might actually need a few more people, not many more, but maybe more. But at worst, employment probably stays pretty steady at Toyota over the medium term,” he said.

Toyota employs over 8,000 people at its two assembly plants.

Meanwhile, Sweeney is confident the impact of U.S. tariffs on its Canadian-made vehicles will be “sorted out” by the fall.

That would be good news, as nearly 90 per cent of Ontario-built RAV4s are shipped south of the border.

“I think there are deals to be had,” he said, adding there is a solid future ahead for the Canadian automotive industry. “It’s just going to look a little different than it did, you know, in the heyday and in the 1990s.”

To make his point, Sweeney notes the decline in Canadian production by the traditional Big Three automakers.

“At the moment, if we look into the 2030s, the future of the Canadian automotive industry largely hinges on Toyota, Honda, and Volkswagen.”