Automotive

Trump Tariffs Help Toyota Sell

Toyota was in the spotlight in late May 2025 when it unveiled an updated version of its best-selling model, the RAV4. But even without the updates, the Japanese automaker is doing just fine.

New Toyota RAV4: three versions at once and only hybrids

The sixth generation of RAV4 has completely abandoned gasoline engines, switching to electrified powertrains. Now, buyers have two options: a self-charging hybrid (HEV) and a plug-in hybrid (PHEV), both with a 2.5-liter four-cylinder motor. Experts in used cars from Indianapolis, Indy Auto Man, compared the previous generation with the novelty: the RAV4 HEV, available in FWD and AWD versions, demonstrates an impressive increase in power. The front-wheel drive version can boast 229 hp, while AWD added 17 hp, gained an impressive 239 horsepower. The more powerful RAV4 PHEV, available only with all-wheel drive, produces 324 hp (18 hp more than the previous model).

The sixth-generation RAV4 is built on the new Arene platform, which allows the owner to create a software-defined car.

The Toyota RAV4 exterior design has undergone significant changes. The central block combines screens and controls. The multimedia system supports voice control and personalization. An enlarged trunk will provide enough space for transporting luggage.

The model is offered in three versions: CORE for urban drivers, off-road ADVENTURE, and sports GR SPORT with improved suspension and aerodynamics. Toyota Safety Sense system minimizes risks on the road, offering automatic stopping if the driver is unwell and suppression of sudden acceleration.

The key advantage of PHEV compared to other hybrid types is the ability to travel up to 90 miles on electricity alone, which significantly reduces dependence on gasoline and decreases the carbon footprint. The charging system allows you to restore 80% of the battery resource in just 30 minutes, and the innovative V2H (Vehicle-to-Home) function makes it possible to use the car’s energy to power your home.

Sales Boost

For the fourth month, Toyota has increased sales, production, and exports, especially to the tariff-protected United States. According to the latest report, the manufacturer sold 876,864 vehicles in April alone, a 10% increase from a year earlier, with 233,045 items sold in the United States. Toyota’s premium division, Lexus, was no less impressive. Thanks to the success of the RX hybrid, the brand sold 80,494 vehicles worldwide in April, up 15.2% from last year. Sales in the United States were up 24%.

Increased production rates and upcoming price hikes

High demand for Toyota and Lexus models supports the growth of production rates. In April 2025, the Japanese giant produced almost 130 thousand cars (129,414), which is 7.7% more than in the same month last year. Interestingly, the surge in sales of Toyota and Lexus cars in April was caused, among other things, by panic over the threat of tariffs imposed by US President Donald Trump. Toyota had previously taken this calmly, not raising prices until a final decision was made. 

However, the company recently changed its position, admitting that prices for its products could rise significantly, and this increase will fall on the shoulders of buyers. So, we will see if Toyota can maintain the same sales dynamics after the inevitable price increase.

Frank Nadia
the authorFrank Nadia