What's the difference?
Let’s make one thing clear from the very beginning - this new Mercedes-AMG GLC63 S E Performance is technically superior to the model it replaces. Whether it’s actually better or not, is the real question at the heart of the matter.
Why? Because, like the C63 sedan stablemate, AMG has opted to replace the previous model’s 4.0-litre twin-turbo V8 engine with a new 2.0-litre four-cylinder hybrid powertrain. It was a move brought about in part because of increasingly stricter emissions standards in Europe, but also ties-in with the German firm’s success in modern Formula One racing.
While the new hybrid system offers more power, more torque and better fuel economy, as the lukewarm response to the C63 has demonstrated, the hard reality for AMG is that its buyers associate it with V8 and even V12 engines. That emotional pull is hard to replace with logic, even if the new model offers technical superiority.
But how does the new powertrain suit the GLC63 - is it just technically better or is it holistically improved?
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.
Like I said right from the start, this new, hybrid version of the AMG GLC63 is technically superior to the model it replaces in every meaningful way. It is faster, more powerful and more fuel efficient and therefore a better performance SUV than the model it replaces.
Is it a better model than the one it replaces? Ultimately that will come down to how much stock you put into the soundtrack and your feelings on an AMG not powered by a V8 engine.
Because if you can see past that, then the AMG GLC63 is an absolutely fantastic performance SUV. Not only does the new powertrain make it faster in a straight line, but the chassis is very well-balanced, making for an engaging driving experience.
For those who can look past the smaller engine they will be rewarded with an incredibly fast and rewarding-to-drive member of the AMG family.
Note: CarsGuide attended this event as a guest of the manufacturer, with travel, accommodation and meals provided.
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.
The GLC63 is unmistakably an AMG from the moment you first lay eyes on it. That’s thanks to the AMG-specific elements, starting with the grille with vertical strikes and the AMG crest on the bonnet; which is now a signature item for the performance sub-brand.
The GLC63 is also fitted with the Night Package II design kit; this adds a darkened grille and black chrome badging to further enhance its visual appeal.
The AMG-specific alloy wheels and more aggressive stance do mean the GLC63 stands out from the rest of the GLC range, helping it look fast even when it’s standing still.
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.
Inside the GLC63 is clearly a derivative of the rest of the range, with its C-Class-inspired design and layout, but there’s enough AMG-specific elements to ensure it looks and feels special. This starts with the AMG steering wheel, which comes not only with a thick rim wrapped in Alcantara, but also some AMG special dials to adjust the various performance settings for the powertrain, suspension and transmission.
Then there are the AMG-specific seats, which look good and offer good support for the driver and front seat passenger. The rear seats offer decent space for what is a mid-size SUV, with room enough for two adults or teenagers or three smaller kids.
Those in the back aren’t particularly well looked after though, with only rear air-con vents and small door pockets but no USB charging ports or other small item storage.
The boot is 590 litres, down from 620L in the rest of the range, thanks to the addition of the rear-mounted electric motor. There’s also no room for the temporary spare the rest of the GLC range gets and instead you have to make do with a puncture repair kit.
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.
The power and torque figures aren’t the only numbers that have risen sharply, with the GLC63 clearly impacted by a double whammy of inflation and the usual new-car price rise.
The GLC63 now starts at more than $191,814 for the SUV and $198,415 for the Coupe, which represents a nearly $30k increase over the old V8-powered model, which was priced at $164,600 just two years ago. Even for luxury car buyers that’s a big jump, especially when you’re trying to convince people of the merits of the four-cylinder powertrain.
That also means it's more expensive than all of its key competitors, including the BMW X3 M Competition, Maserati’s Grecale and the outgoing, petrol-powered Porsche Macan GTS.
To help explain some of this price increase Mercedes-Benz Australia has opted for a high level of standard specification for local cars. Standard equipment includes 21-inch alloys, AMG composite braking, a panoramic sliding sunroof, a unique AMG steering wheel, power-adjustable sports seats in Nappa leather, a head-up display, dual-zone climate control, wireless smartphone charging and a Burmester 3D Sound system.
Also included is the AMG Track Pace suite, for those who want to unleash their GLC on the racetrack.
There’s also a limited run, AMG Edition 1 Package available too, for an additional $12,900. On the outside you get Manufaktur graphite grey magno paint, foiling with colour gradation and large AMG logo on the sides, an AMG Aerodynamics Package, unique alloy wheels with Edition 1 and AMG branding, yellow brake calipers and an AMG fuel filler cap in silver chrome with AMG lettering.
Inside there’s AMG Performance seats, AMG Nappa leather in black with yellow contrasting stitching, AMG illuminated door sills, carbon-fibre AMG trim highlights, yellow seat belts and a unique AMG Performance steering wheel wrapped in carbon-fibre and microfibre.
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.
This is what lies at the heart of the AMG GLC63’s success or failure. As I mentioned at the beginning, the previous generation’s 4.0-litre twin-turbo V8 has been replaced by an F1-inspired plug-in hybrid powertrain.
But don’t think that means AMG is suddenly focused on efficiency over performance. When AMG says the powertrain is inspired by the brand’s success in Formula 1 racing, what it means is the battery and electric motor provides a significant performance boost to support the internal combustion engine, not just save fuel.
To that end the combination of the turbocharged 2.0-litre four-cylinder petrol engine and the rear-mounted electric motor produces an impressive 500kW and 1020Nm. That’s a massive jump over the 375kW/700Nm made by the outgoing V8.
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.
Mercedes makes no secret that the battery is designed for performance, not saving fuel. It only has a 14km EV range but can recharge quickly on the move to provide a power boost when needed.
But despite all that, the GLC63 is actually significantly more fuel efficient than the old V8, using a claimed 7.3L/100km, which is a massive 4.9L/100km improvement over the old model. Although, on our day-long test drive we didn’t manage to come close to that claimed figure and instead saw returns around 11L/100km, albeit after a lot of spirited open-road driving.
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.
Anyone who still believes in the adage ‘there’s no replacement for displacement’ hasn’t driven a modern turbocharged and hybridised engine. The GLC63 is a demonstration of the metaphorical and literal power of modern technology, combining an extremely efficient and potent internal combustion engine with an electric motor to make enormous real-world performance.
To be blunt, the GLC63 feels like a rocketship out of corners, launching with a ferocity and relentlessness the old V8 simply can’t match. It shouldn’t come as a surprise, a mid-size SUV with 1020Nm was always going to have plenty of performance, but even so it’s a shock to the system every time you give the GLC63 full throttle. Officially AMG claims it takes just 3.5 seconds to run 0-100km/h and has an electronically limited top speed of 275km/h - mighty impressive figures for a five-seat mid-size SUV.
To help get all that torque to the road, AMG deploys torque distribution technology that allows for it to be split an even 50/50 front/rear all the way to 100 per cent to the rear tyres.
Other technologies deployed to enhance its handling include AMG Ride Control suspension with adaptive damping and rear-axle steering. There’s also eight AMG Dynamic Select driving modes and four AMG Dynamics settings (Basic, Advanced, Pro and Master), so it’s a complex vehicle that is designed for the enthusiast.
While it’s easy to drive around town, once you get out on the open road you can really get a sense of the GLC63’s performance potential. Beyond just its powertrain the suspension offers good body control and the rear-axle steering helps it feel agile and responsive.
It’s not perfect though. At times the complexity of the system does lead to some hesitation when you put your foot down. It certainly lacks the linear power delivery of the old V8 and makes for a slightly trickier driving experience at times.
As for the sound, which is one of the biggest elements missing from the V8, Mercedes has added AMG Real Performance Sound, which features a pressure sensor in the exhaust that picks up on the engine note and plays it through the speaker system. It certainly helps make for a louder, more noticeable engine noise, but it still sounds more like an A45 than the previous GLC63 and for many would-be buyers, that’s a major turn-off.
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 GLC63 comes standard with a comprehensive suite of safety features including 'Distronic' (Mercedes’ name for adaptive cruise control), 'Active Lane Keeping Assist', 'Blind Spot Assist', 'Traffic Light Assist' and 'Adaptive Highbeam Assist'. It also includes Mercedes’ 'Pre-Safe' accident anticipation system - which pre-tensions the seat belts and will even play a white noise to protect your ears if it senses a crash is imminent.
A parking system that includes a 360-degree camera and active parking assist is also included.
The GLC range was awarded a five-star ANCAP rating in 2022, which pre-dates the latest testing protocols, so doesn’t provide a like-to-like comparison for vehicles tested after that date.
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.
The GLC63 is covered by Mercedes Australia’s usual five-year/unlimited kilometres warranty.
As for maintenance, Mercedes offers service plans, spanning three to five years. Three years will cost you $5025, $6455 for four years and five years is priced from $7180. Servicing intervals are 12 months or 20,000km, whichever comes first.
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.