Toyota Is Spending $1 Billion to Build More RAV4s and Camrys in America

Betting on What Already Works

Toyota announced a $1 billion investment as part of its broader $10 billion U.S. spending plan over the next five years. The move includes boosting production capacity for its top-selling models – the RAV4 and Camry – at its Kentucky plant.

Increased production capacity could give the RAV4 and Camry a better shot at competing with the top volume sellers in the U.S., including the Ford F-Series and Chevrolet Silverado. In 2025, the RAV4 ranked as the third-best-selling vehicle in the country, with 479,288 units sold – slightly more than half the total posted by the market-leading F-Series. The Camry, meanwhile, placed eighth with 316,185 units sold, ahead of the Tesla Model Y. Notably, it was the only sedan to crack the top 10 in a market that continues to favor crossovers and SUVs.

In addition, increasing Camry production would allow the company to meet demand for U.S.-built models destined for export to Japan, alongside the Tundra and Highlander.

Electrification Without the Rush

Toyota also plans to prepare its Kentucky plant for battery electric vehicle (BEV) production, a move that could help it avoid exposure to tariffs faced by foreign-built EVs like the Hyundai Ioniq 6. Of the $1 billion investment, $800 million will be allocated to the Kentucky facility, while the remaining $200 million will go to its Indiana plant.

The Indiana plant will aim to increase production capacity for the Grand Highlander, the brand’s three-row midsize crossover that rivals the Ford Explorer. While it may not match the volume of the RAV4 and Camry, it was still the Japanese marque's sixth-best-selling model in the U.S. last year after the Tundra.

The Multi-Path Advantage

Toyota reiterated that the investment is part of its multi-pathway strategy, suggesting it is not rushing into a full transition to electric vehicles – a push that has backfired for some automakers. Demand in the U.S. has recently shifted toward hybrids, aligning with the RAV4 going fully hybrid for the 2026 model year.

This latest $10 billion spending plan brings Toyota’s total U.S. investment to nearly $60 billion since it began operating in the country nearly 70 years ago. The company also said it currently employs 50,000 people and has produced more than 35 million vehicles across 11 U.S. plants.

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