What's the difference?
Large family-friendly luxury SUVs tend to be handsome in design but somewhat restrained. Until now. BMW has introduced a major facelift for its flagship SUV, the six- or seven-seat X7. Emphasis on face.
The new X7 adopts the striking but controversial front-end from the new 7 Series sedan, but the big, bold SUV is hiding some rather significant changes under the skin. Aside from a beefier diesel that now comes with mild hybrid tech, there’s also a redesigned cabin, massively upgraded tech, more standard features, oh, and a price increase.
This is probably the most important new car launch of the year.
The 2026 Toyota RAV4 needs to be bang-on exactly what customers want, because it’s not only Toyota’s most popular model globally, it was the most popular new car in the world last year.
It’s also Toyota Australia’s second-most popular model behind the Toyota HiLux the highest-selling non-ute in the nation.
Crucially, The HiLux has just been launched in a new generation albeit not a revolutionary change, and it somewhat overlaps with the generation changeover of the RAV4.
Toyota is also facing a significant sales dip, the first quarter of sales for the brand in 2026 is down 23 per cent compared to the same time last year. It’s a bigger dip than the industry as a whole, as its market share is down from 19.9 per cent to 15.7 per cent in the same periods.
The new RAV4’s launch must bring strong sales as the vast majority of the brand’s dip is thanks to the mid-size SUV’s changeover.
But as well as an influx of new competitors, the RAV4 must also contend with a lack of ANCAP safety rating for its first few months on sale.
Has Toyota done enough to convince Australia its family SUV is still worthy of its position as the best-selling passenger car getting around? We headed to its Australian launch in Tasmania’s north to find out.
When lined up against its direct rivals, the expensive X7 xDrive40d represents reasonable value for money.
It has a unique and bold look and a sumptuous, visually striking and well-appointed interior that has acres of space for family, friends, or for ferrying frequent flyers to the airport.
That wallop of performance from the big beefy diesel is the cherry on the top. This is how you do a mid-life update.
The RAV4 is undeniably better than the last generation, and brings with it a level of driving refinement the most popular car in the world should have.
It also levels up its tech without falling into the overcomplicated, messy systems newcomers to the market think will impress buyers. While the base GX is a sound option, the few extra mod cons in the GXL are worth the extra cash.
But its lack of ANCAP rating is surely a point of anxiety for Toyota, and while the safety systems seem sound, we can’t definitively say this RAV4 is as safe as Toyota claims it is.
If you’re willing to trust Toyota on that, you’ll find a very enjoyable car that’s uncomplicated and efficient. But if those five stars from ANCAP matter to you, give it a few months and see how the new RAV4 performs before you put your money down.
There’s quite a bit that’s interesting about the X7’s design. Especially looking at it front on.
BMW certainly took a bold step when it introduced its toothy grille design for the X7 and the 4 Series range.
But the Bavarian brand has made some even braver design moves recently by introducing a blocky front-end with split headlights on its new-gen 7 Series flagship sedan. That look has now found its way onto the face of the updated X7.
As with the 7 Series, it won’t be to everyone’s taste. But you can’t deny it has a lot of presence.
The tail-lights have been tweaked and look good, but the sheer size of the X7 - it’s 5.2 metres long and 1.8 metres tall - means there’s no disguising the fact that it is a big, boxy SUV.
Inside the update ushers in significant design changes. The old dash and cowl is gone in favour of the ‘Curved Display’ that connects the instrument cluster and multimedia.
New slimline air vents, LED backlit ‘X7’ graphics on the passenger side of the dash, and a new gear shift toggle that replaces the old shifter elevate the cabin and give it a much more modern vibe than the old X7 - one that’s in keeping with the excellent iX electric SUV.
Each RAV4 in the range is more visually distinct than before, but most variants feature a similar honeycomb grille that’s a departure from the ‘safe’ design language Toyota is known for.
The outlier is the Edge variant, which gets a more traditional front-end treatment as well as its 20mm wider wheel tracks to go along with the intended purpose of light off-roading.
Despite the fact Toyota has clearly tried not to change the new RAV4 too much in too many ways compared to the last generation (and why would you when it was already so popular), the new design feels a little more adventurous.
It includes elements of Toyota’s latest design language including the ‘c-shaped’ headlights and more streamlined tail-lights but retains the overall size and shape of the RAV4.
The RAV4 is 4600mm long, 1855mm wide and 1680mm tall, a very similar size to before and as such its interior feels similarly spacious.
Inside, the layout is tidy with a little more visual distinction for controls than the last-gen RAV4.
Updated, sleeker buttons and controls replace the ageing fixtures and large screens make the mid-size SUV feel much more up to modern standards.
Regardless of the price point, a three-row SUV needs to be super practical and capable of family duties.
And if you want a BMW X5 but need a lot more space, this is the next logical step.
Let’s start in the front row. As mentioned, the new X7 gains the screen and tech set-up from other new BMW models like the iX and updated 3 Series. The Curved Display combines a 12.3-inch digital instrument cluster with digital speedo and a 14.9-inch multimedia screen.
You can customise the cluster layout and move things around on the multimedia screen, too. The latter is a touchscreen but you can also find what you need via the 'iDrive' controller in the console.
I have had some experience with this system in the iX and while it’s not without its flaws, it is a top notch system. There’s a lot to wrap your head around, but the use of app icons helps. And you can swipe through to your chosen screen.
It took far too long to work out how to find the trip computer, something that should be much easier to access, as well as a couple of other functions. And the climate controls are housed in the digital screen. I would always prefer a separate space with buttons for air-con.
But the graphics and displays - including the excellent head-up display - are excellent.
Other tech you get with the X7 includes the BMW’s 'Digital Key', which is an app that allows iPhone users to lock and unlock their car remotely, and BMW ID driver profile.
If you buy this car, just allow yourself some time to familiarise yourself with all that tech.
Elsewhere up front there’s a lovely new three-spoke steering wheel, and cute touches like the metal air vent toggles, black and metal touches and the choice of inserts.
The front seats are luxurious and comfortable and offer loads of side and thigh support. They have memory functions, too. There’s no shortage of headroom up front, either.
Storage-wise, the door will fit the largest of bottles, as well as other items thanks to generous door bins, while the central lidded box is also sizeable.
What about that second row?
The X7 xDrive40d usually comes standard with seven seats, but our test car was fitted with the $1500 captain’s chair option which drops seating capacity down to six people.
If you need the extra seating this is not the option for you, but it is great for families with bigger kids, and it would make for an excellent airport transfer car.
The seats are unbelievably comfortable and can be adjusted to suit your preference. They also have ISOFIX points and armrests.
Rear seat occupants have access to their own climate controls, air vents, USB ports, cupholders and ample door storage.
There is a massive amount of occupant space as well - stretch those legs out and enjoy it!
One of the X7’s selling points is that it is a genuine three-row SUV. That third row is not just for occasional use for very small children, like so many seven-seat SUVs. That row can be used every day.
Even with my six foot stature, I could easily climb in and out of the third row. That’s made even easier thanks to the mechanical seat functions.
Just hit the lever at the top of the second row seat and the motor moves the seat forward and up to ensure there’s a big enough aperture to get in and out of the rear seats.
You can also raise and lower the third row electronically via buttons on the boot wall - and they stow flush into the boot floor. Neat!
Once in the third row, there’s air vents, USB ports, bottle holders and storage and quite comfortable seats with more than enough leg and head room.
There’s even a third row section of the sunroof, operated from the second row. Lots of clever touches that people who use the third row will appreciate.
The boot has a few cool features, too, including a split tailgate.
You can even sit on the lower section - it can handle a load of up to 250kg - a perfect place to sit and watch the polo.
You can lower the suspension to aid loading larger items, and the X7 comes with a space-saver spare wheel.
Capacity is 300 litres with all seats in place, and I easily fit a pair of smaller suitcases in with that configuration. It increases to 2120L with the two rear rows folded.
But despite the sleeker look inside the new RAV4, Toyota hasn’t fallen into the trap of shoving as many digital features into the system as possible.
Many newcomer brands create confusing digital environments by having menus upon menus filled with options and features, but Toyota has avoided this by retaining a simple, almost siloed system.
In the multimedia display, navigation, media, phone and settings are the key shortcuts visible down the side of the screen, though a customisable home screen allows you to make the system your own.
It’s far preferable to the many sub-menus and confusing layouts some manufacturers (especially newcomers) use, and means you’re able to focus on driving.
There are also still plenty of physical controls for the key functions of the car, no need to go into digital settings to sort your drive mode or climate.
The new system, dubbed 'Arene' by Toyota, is a much-needed update for the RAV4, bringing it into the current decade when it comes to tech.
Its voice command system is still a little too keen to interrupt, but the general function is extremely easy to get acquainted with.
The interior is also physically extremely sensible, with good vision and light thanks to a low dashboard and large windows, well-considered ergonomic positioning, comfortable seats and storage options.
The centre console storage bin lid is also able to be opened from either side, or removed and flipped between a hard plastic surface or cushioned elbow rest, though a bit of non-slip surface on the plastic side wouldn't go astray.
Behind the front seats, the second row passengers don’t have a massive amount of amenity, but are far from cramped. The vents, armrest with cupholder, bottle storage in the door and document holder on the backs of the seats are all quite standard, though the outboard seats are heated in the top spec Cruiser.
Behind that, a huge 705L of space in the boot includes a netted pocket if you opt for the Edge grade, plus there's a proper spare wheel under the boot floor. Wins all round.
We are way out of Kluger and Sorento territory with the BMW X7. This is a bus for cashed-up families.
The upper-large SUV was introduced in mid-2019, but as part of the mid-life update, BMW has changed up the model grades. There are still two, but the xDrive30d and M50i have been replaced by the diesel-powered xDrive40d M Sport, and the performance-focused V8 petrol-powered M60i.
For the purpose of this review, we drove the 40d M Sport, which gets a power boost over the outgoing 30d - more on that in a bit.
As a result of the significant update, BMW has increased pricing on both grades. For the xDrive40d, it now starts at $174,900, before on-road costs, which represents an increase of more than $30,000 over the old 30d.
If you’re after a bigger dollop of performance, the M60i will cost you $205,900.
While the xDrive40d pricing seems steep, it undercuts a couple of other big luxury diesel SUVs including the Mercedes-Benz GLS400d ($179,500 BOC) and the Toyota LandCruiser-based Lexus LX F Sport ($176,091 BOC).
The most affordable diesel-powered version of the new-generation Range Rover starts from $226,806, so in that regard, the X7 40d is the best value in its class!
As well as the updated powertrain and in-car tech, the X7 xDrive 40d now comes with a hefty standard features list including metallic paint, 22-inch wheels, the M Sport pack, five-zone climate control, Harman Kardon 16-speaker sound system, a drive recorder, comfort seats, ‘Comfort Access’, roof rails, electric sunblinds, panoramic glass sunroof, digital radio, a head-up display, ambient lighting, wireless Apple CarPlay and Android Auto, and leather interior.
Our test car was fitted with a number of options that pushed the price to just under $185,000. The extras included huge 23-inch alloy wheels ($3500), BMW Individual 'Dravit Grey' body paint ($2400), a trailer tow hitch ($2500) and second row captain’s chairs ($1500).
Note that if you opt for that tow hitch, you’ll lose the ability to open the hands-free tailgate with a kick motion.
The RAV4 is more expensive than it was before. Of course it is.
That’s because it comes with more stuff, and it’s got new oily bits and more software to play with, plus everything gets more expensive anyway, right?
There are five trim levels, most with 2WD or AWD options and the base GX starts from $45,990, before on-road costs, in 2WD guise - a few thousand more than before.
Standard kit isn’t mind-blowing compared with a lot of newcomers to the market, but for an established model like the RAV4 it’s expected.
The GX (which can be had in AWD for $49,340) comes with 17-inch dark grey alloy wheels, LED headlights, dual-zone climate control, a 10.5-inch touchscreen display for multimedia, a 12.3-inch digital instrument cluster, fabric upholstery, six-speaker audio and five USB-C ports plus wireless Apple CarPlay and Android Auto.
If you opt for all-wheel drive, you also get downhill assist control and 'Trail' and 'Snow' drive modes.
Importantly, the RAV4 comes with a spare wheel, though on the GX it’s just a space-saver which costs $300 to upgrade to a full-sizer.
The $48,990 GXL adds 18-inch alloy wheels, privacy tinting, an eight-way powered driver’s seat, rain-sensing wipers and a wireless smartphone charger. That one’s $52,340 in AWD guise.
The Edge is $55,340, comes in AWD-only, and has its own front-end design plus 18-inch dark matt grey metallic alloy wheels on a 20mm wider track, plus a larger 12.9-inch touchscreen, premium trim, heated seats, illuminated entry and a power tailgate. It’s the variant Toyota says is more aimed at light off-roading than its siblings.
The XSE is also AWD-only and starts at $58,340, with 20-inch black alloy wheels, better LED headlights, a surround view parking monitor and two-tone paint. It also has synthetic leather and suede sports front seats with contrast stitching and three-stage front seat heating and ventilation, plus a sunroof. Front and rear bumpers feature integrated skid plates on the XSE.
The Cruiser is available as a 2WD from $56,990, or AWD from $60,340, and adds 20-inch machined black alloy wheels, high-grade LED headlights, leather-accented seat trim, a head-up display, digital rearview mirror, heated outboard rear seats, powered tailgate with kick sensor, another wireless smartphone charger and a premium nine-speaker JBL audio system.
The X7 xDrive40d is powered by a 3.0-litre, in-line six-cylinder turbo-diesel engine, that gets a boost in power - it pumps out 259kW of power and 720Nm of torque - 64kW/100Nm more than the 30d.
It now also comes with 48-volt mild hybrid tech, which uses an electric motor integrated in the eight-speed automatic transmission.
It drives all four wheels via BMW’s 'xDrive' all-wheel drive system and it is fitted with air suspension for a cushy ride. Towing capacity is rated at 3.5 tonnes braked or 750kg unbraked.
If you are keen on off-roading in the X7, it has a 221mm ground clearance, and a fording depth of 500mm, but maybe best to keep it on the tarmac.
The 2.5-litre four-cylinder engine with series-parallel hybrid is less powerful than before, but Toyota says it did this for better efficiency and has made up for it with improvements to the battery and electric motors.
The figures are now 143kW and 221Nm (in 2WD and AWD variants), the power down from 160kW in the last generation. All RAV4s still use a continuously variable transmission (CVT).
Basically, lower numbers, but performance on par with the current RAV4 Hybrid according to Toyota.
According to BMW, the official combined cycle fuel figure for the X7 40d is 8.0 litres per 100 kilometres.
Our fuel figure after nearly a week of mixed city, freeway and country driving was 9.0L/100km, which isn’t too far off the mark.
It has an 80 litre fuel tank and an approximate driving range of 1000km.
The new RAV4’s efficiency is of much interest, obviously, and with figures claimed at 0.2L less per 100km over the last RAV4, it’s another case of incremental improvements.
The 2WD comes with a claimed 4.5L/100km, the AWD with 4.6L. During testing we saw numbers as low as 6.8L and 6.9L, respectively, and that was giving it the beans in some pretty twisty mountain roads.
Keep in mind the RAV4 needs 95 RON minimum now, rather than the 91 RON it could deal with before.
With a big plush SUV like this, you’d expect a comfortable ride. And for the most part, the X7 delivers that, while offering more than a bit of grunt, as well.
The X7’s height ensures a high driving position, and there’s plenty of glass for decent visibility.
Propelling a 2.5-tonne SUV could be a struggle for a lesser engine, but the meaty diesel offers ample torque and the mild hybrid set-up helps to reduce initial turbo lag significantly - that means it is responsive from a standing start.
I wouldn't have thought a vehicle of this size and shape was capable of a 5.9-second 0-100km/h time, but here we are.
As a result of all that torque and power, overtaking is a breeze - providing there is enough room on the other side of the road for both cars to fit.
That size and heft have an impact on cornering and dynamics. You simply can’t carve through tight corners in this car, but with that said, it’s more entertaining than you’d think.
Steering feel is weighted on the heavier side and it’s as sharp as it needs to be in a car like this. It would be weird if the steering was too pointy.
Ride quality is top notch - as it should be - and while the massive optional 23-inch wheels and low profile tyres mean you’ll notice potholes and the like, it largely soaks up imperfections with ease.
That level of refinement extends to the hushed ride, too. The cabin is a quiet and serene place to spend time - but not quite to the same degree as a 7 Series.
Parking in tight spots is a challenge, and manoeuvring in narrow streets could take a while, too. But you could tell that just by looking at the X7.
Put it this way - the RAV4 doesn’t feel like it’s lacking power. Despite the lower output, the new generation car doesn’t seem to struggle with having enough pick-up to keep moving along, even in spirited driving.
The first time I properly took off it surprised me with how punchy the response was. And from there on the new RAV continued to impress.
It’s one of a few things that, dare I say, makes the RAV4 rather fun to drive.
Like its predecessor, it’s built on the 'TNGA' platform, which underpins pretty much everything Toyota builds these days.
It’s a well-sorted basis for a car, making even this relatively large family SUV feel nimble.
Some changes to the suspension help here, too. New geometry and spring and damper rates mean the RAV4 is sharper and better controlled than before.
That control comes with the trade-off that it’s not always cloud-soft, but given Australian preferences and the need to keep the rubber on our rough as guts roads, Toyota has the balance right here.
It also hasn’t seemed to matter massively whether the RAV4 is front- or all-wheel drive even in the wet on twisty Tassie roads. The 2WD requires a little more care being flung into corners but the mid-sizer holds its own well enough.
There’s clearly more ability in the RAV4 than it’ll make known, almost as to keep the driver behaving safely just in case, while being confident in knowing the RAV4 is more capable than many will ever find out.
It’s handled high speeds, sharp corners and unsealed roads to a higher degree than anyone would reasonably expect of a family SUV.
It helps that the steering, throttle and braking are all well-calibrated. Planting your foot brings urgency without a jolt, there’s no guesswork in the steering and the brakes won’t have you lurching at a tap but can pull you up rather rapidly if needed.
It’s easy to drive, which is pretty big compliment and surely one of the key goals for the engineering team.
The X7 has size on its side when it comes to occupant protection, but it also comes with a decent level of safety gear as standard.
Features include auto emergency braking (AEB) with pedestrian and cyclist detection, a safe exit assist function to avoid 'dooring', and an advanced lane keeping aid, ‘Parking Assistant Professional’, ‘Trailer Assistant’, and hill descent control.
The X7 is yet to be crash tested by the local safety authority, ANCAP, or by Euro NCAP.
Toyota doesn’t have an ANCAP rating for the RAV4 yet, which is a massive problem for the brand, especially for its fleet buyers.
The systems in place seem pretty sound, and the brand says it’s the safest RAV4 yet.
We have no reason to doubt that, but we can’t just take a manufacturer at their word, that’s why ANCAP exists.
Eight airbags, AEB pre-collision, emergency steering assist, full-speed active cruise control, front and rear cross traffic alert, lane trace, automatic high beam, parking support brake and blind spot monitor are all standard across the range, which is a plus.
It’s also all quite well programmed.
From behind the wheel, you’ll notice persistent but gentle steering wheel nudges when approaching the shoulder, and occasional chimes for driver distraction when using the main screen, but otherwise it’s very well calibrated and cements the experience Toyota has with making its systems easy to use.
After copping a bit of flack from motoring media and buyers, BMW finally increased its warranty terms last year from three years to an industry standard five-year, unlimited kilometre warranty on its vehicles, including the X7.
Rather than a set servicing schedule, BMW offers condition-based servicing which is when the vehicle’s computer alerts the owner that it requires a service.
BMW doesn’t offer capped-price servicing, but does have a pre-paid 'Service Inclusive Package' with terms ranging from three years/40,000km to five years/80,000km and beyond.
A five-year basic package for the X7 costs $2800, which is not too bad considering the positioning of this model.
Toyota’s standard five-year/unlimited kilometre warranty is not just disappointing compared to other mainstream brands, but should be much higher given the brand is the biggest in the country (and world) and trades on its reputation for reliability.
The warranty can be extended to seven years from delivery if you maintain your logbook servicing with Toyota dealerships, but even then it falls short of Nissan and Mitsubishi’s 10-year (also servicing-conditional) warranties.
Capped-price servicing costs $325 per service and is available for five years or 75,000km, with intervals every 12 months or 15,000km.
Toyota boast a long-established national network of around 300 dealers covering all states and territories including major cities and key regional and rural centres.