Toyota Motor North America (TMNA) has posted its U.S. sales results for March and the first quarter of 2026, and the news isn’t as positive as we’re used to from the Japanese brand. In March, Toyota sold 182,606 vehicles, down by 6.9%, while quarterly sales reached 488,468 units, steadier but still down by 0.3%. These numbers exclude Lexus sales; when taking the luxury brand into account, TMNA sales dropped by 17.3% in March. As we’ll see when digging into the numbers, a decline in sales for the best-selling RAV4 brought the company’s overall numbers down significantly—but there’s a good reason for that.Camry Takes Over The Top Spot Toyota launched the all-new RAV4 crossover last year. The company’s best-selling vehicle for years, transitioning to the new generation of the model has been complicated. While demand for the SUV remains high, production is still ramping up for the new RAV4, which has impacted early sales.“We maintained stable sales year-over-year, even while navigating production constraints and limited inventory during the ramp-up of our traditional volume leader, the new RAV4,” said Andrew Gilleland, senior vice president, Automotive Operations Group, TMNA. As a result, RAV4 sales dropped to 21,693 units in March, a sharp year-on-year decline of 47.7%. It went from being Toyota’s best-selling model a year ago to fourth spot last month. These were Toyota’s top-selling models last month:Toyota Camry: 30,680 (+3.4% YoY)Toyota Tacoma: 24,998 (+4.4% YoY)Toyota Corolla: 23,210 (+8% YoY)Toyota RAV4: 21,693 (-47.7% YoY)Toyota Grand Highlander: 13,895 (+26.8% YoY)It’s rare that an automaker’s best-selling vehicle in 2026 is a sedan, but the Camry achieved this honor for Toyota in March and for the quarter. RAV4 first-quarter sales declined by 48.1% to 59,869 units, down from 115,402 units in the same quarter last year. In February, we reported on TMNA bosses informing dealers that 2026 RAV4 inventory would be tight. To compensate, dealers have been asked to redirect customers to other models in the company’s lineup in the meantime. It’s a tough ask, since nothing else offers the RAV4’s near-perfect combination of practicality, efficiency, and value.Grand Highlander Hybrid and Corolla Cross Hit New Highs Toyota reported all-time best-ever sales for the gas-powered Corolla Cross and Grand Highlander Hybrid, although it’s unclear if this relates to March or first-quarter sales specifically. In Q1, Grand Highlander Hybrid sales reached 20,532 units, a healthy increase of 86.9%. Corolla Cross Hybrid sales, on the other hand, declined by a massive 78.4% in March, so the bulk of this crossover’s 11,709 sales were for the gas-only model. A series of recalls affecting the Corolla Cross Hybrid specifically may have something to do with that.The 4Runner (+77.4%), bZ (+139.5%), and GR Supra (+99.4%) were the fastest-growing models in terms of March sales. The all-new C-HR EV started with only 13 sales in March, but that’s expected to increase in the months ahead.What It Means Toyota’s latest sales report isn't a reason to panic yet. While sales are down overall, this has much to do with the transition to the new RAV4 generation and doesn’t reflect lower demand for the crossover. March 2025 was also an especially strong month across the industry, while record car prices and winter weather further hampered sales last month.In the meantime, the Camry has shown its resilience and continued relevancy, despite the decline in demand for sedans. It was last Toyota’s top-selling model (in terms of annual sales) in 2016, before the RAV4 took over. For anyone who wants a RAV4 but can’t find one due to low inventory, the Camry is a viable alternative with its punchy hybrid powertrain and sub-$30k starting price.