Toyota RAV4 Production Rolls Out in Canada

Everythiiing

Jan 24, 2026 • 3 min read

Assembly line at Toyota's Woodstock plant with new RAV4 SUVs being manufactured.

Toyota Signals Commitment to Ontario Auto Workers with New RAV4 Rollout

In a significant move for Canada's automotive industry, Toyota has reaffirmed its commitment to its Canadian workforce by launching the production of the sixth generation of the popular RAV4 SUV at its Woodstock, Ontario plant. The company, which is the largest automotive employer in southwestern Ontario, doubled down on its dedication to Canadian manufacturing despite uncertainties plaguing other parts of the auto industry.

New RAV4 Production Begins in Woodstock

The production of the latest RAV4 model, exclusively available as an electric hybrid, is now underway at Toyota's Woodstock facility. This marks a major milestone for the company, which has invested $1.1 billion to produce the redesigned vehicle in Canada. "This is a significant demonstration of Toyota’s confidence in our people, our plants, and our manufacturing ecosystem," Tim Hollander, the president of Toyota Motor Manufacturing Canada (TMMC), stated during a factory tour. "It also reflects our long-term commitment to Canada and the communities where we operate."

Innovations in the Sixth Generation RAV4

The new RAV4 is a completely redesigned model, built from the ground up. One of the key innovations is that Toyota reconfigured its Woodstock and Cambridge plants to build battery packs for the new RAV4s in-house, instead of importing them from Japan. This move not only enhances the vehicle's local production but also supports the development of advanced manufacturing capabilities within Canada.

Toyota's Strong Presence in Ontario

Toyota Canada has a rich history in the country, with plants in Woodstock and Cambridge employing roughly 8,500 people. The company's southwestern Ontario operation is notable for producing the most vehicles on the continent. Despite 2025 being a challenging year for Ontario's auto industry, with job losses at General Motors and Stellantis plants, Toyota has continued to invest in its Canadian operations. The company has invested a total of more than $12 billion in Canada, and there are currently no plans to cut back on these investments.

Impact on Local Communities

The continuation of RAV4 production in Ontario has a positive ripple effect on local communities. It not only secures jobs for thousands of workers but also supports a network of suppliers and service providers. The stability brought by Toyota's investment is particularly important in an industry that has faced significant disruptions in recent years.

Challenges and Opportunities Ahead

While Toyota's commitment to Canadian manufacturing is clear, the auto industry still faces several challenges. Upcoming CUSMA trade talks are a particular concern, as the agreement is up for review in 2026. Scott MacKenzie, Toyota Canada’s director of corporate and external affairs, acknowledged the uncertainty surrounding these negotiations. "I don't think we know where that's going to end up, but we'll make those decisions once the details are more clear," he said. "We believe that the most effective way for the North American industry to operate is integrated with all three countries participating. I think the best situation is no tariffs."

Government Support and Industry Collaboration

Liberal MP Kareem Bardeesy, who serves as parliamentary secretary to Industry Minister Melanie Joly, was present at the factory tour. He emphasized the importance of securing existing partnerships while adapting to new realities in the auto industry. "This plant and the ecosystem and consumers and team members who are part of that, integrated between Canada, the United States, Japan and elsewhere, is an example of that integration," Bardeesy noted. The government's support and collaboration with industry leaders will be crucial in navigating the complexities of the auto sector.

Future of the RAV4 and Canadian Manufacturing

The launch of the sixth generation RAV4 in Canada is a testament to Toyota's belief in the country's manufacturing capabilities. The company's decision to build battery packs in-house for the new RAV4s underscores its commitment to innovation and local production. As the auto industry continues to evolve, Toyota's investment in Ontario serves as a beacon of stability and growth for Canadian workers and communities.

What This Means for Consumers

For consumers, the new RAV4 offers a blend of advanced technology, efficiency, and reliability that Toyota is known for. The exclusive hybrid option provides an eco-friendly alternative without compromising on performance. With the vehicle being produced locally, Canadian buyers can also take pride in supporting domestic manufacturing and the jobs it creates.

Conclusion

Toyota's rollout of the new RAV4 generation in Canada is more than just a new product launch; it's a statement of confidence in the Canadian automotive industry. As the company continues to invest in its Ontario plants, it not only secures the future of its operations in the region but also contributes to the economic stability of the country. The sixth generation RAV4 is set to be a game-changer, both for Toyota and for the Canadian auto industry as a whole.

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