Toyota has started producing the RAV4 hybrid at its Georgetown, Kentucky, plant and has begun construction of a new paint facility as part of a broader investment in its US operations.

The moves are tied to $2bn of investment announced since 2024 and further extend the carmaker’s manufacturing base in the US.

At the Georgetown site, Toyota has added the all-new RAV4 hybrid to assembly lines as it increases output capacity for electrified vehicles.

The plant is also due to start producing the Highlander battery electric vehicle in September this year.

Toyota Kentucky president Kerry Creech “Making our customers smile by delivering high-quality vehicles like the all-new RAV4 hybrid has been our legacy for 40 years.

“The milestones we celebrate today reflect our team’s commitment to sustainability and our unwavering promise to continue to deliver vehicles our customers love.”

Toyota said the new paint facility is expected to cut carbon emissions by 30% and reduce water use by around 1.5 million gallons annually.

Toyota’s Georgetown operation has received more than $12bn in total investment since production started and has manufactured 15 million vehicles.

The site employs nearly 10,000 people.

The latest steps are part of Toyota’s broader investment in its Kentucky manufacturing operations and its wider US electrification strategy.

Earlier this month, the company said it plans to start selling US-built Camry sedans in Japan later this year, in a step aimed at reducing Japan’s trade surplus with the US and easing trade friction between the two countries.

Toyota intends to ship right-hand-drive Camry models made at Toyota Motor Manufacturing Kentucky (TMMK) in Georgetown from the autumn, with yearly volumes expected to reach 10,000 vehicles.