What's the difference?
Typically appealing to those seeking quality engineering and tech without feeling the need to make a boastful badge statement, Skoda is a low-key, ultra-confident brand.
On sale here since 2018, the Skoda Karoq is a comparatively small fish in one of the most hotly contested segments in the Australian new-car market, namely medium SUVs, the leading trio consisting of the Toyota RAV4, Nissan X-Trail and Mitsubishi Outlander.
To increase its appeal against these and other high-profile contenders Skoda Australia has introduced a new entry-level Karoq designed to hit the Goldilocks zone between attractive standard specification and sharp pricing. CarsGuide was invited to its local launch.
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.
This new entry-level Karoq gives the already accomplished mid-size SUV an even sharper value-for-money edge. On top of that it's space efficient, hugely practical and economical. Safety's up to speed, the ownership package is solid and it's a quiet, refined drive. Before joining the RAV4 queue, we'd suggest giving this Skoda some serious thought.
Note: CarsGuide attended this event as a guest of the manufacturer, with 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.
Skoda's distinctively broad, vertically slatted grille stands the brand apart, and even after six years in market the Karoq looks crisp and contemporary with chiselled character lines and jagged head and tail-lights blending successfully with more gently curved surfaces along the car's flanks and turret.
It might be a subconscious side-effect of knowing Skoda is part of the VW Group, but I can't help seeing hints of Tiguan here and there, particularly around the side windows and rear end.
But cool touches like aero-influenced inserts in the 18-inch alloy rims reinforce the Karoq's individual look.
Move to the inside and while the 8.0-inch central media touchscreen and 8.0-inch digital instrument display are on the pace the overall design shows the car's age.
Quality trim materials lift the tone, the cloth seats with contrast stitching look (and feel) great, but the understated dash design in particular is 'traditional', the vibe accentuated by liberal use of piano black highlight elements.
That said, the mix of on-screen functions and physical controls works well ergonomically and the leather-trimmed, partially-perforated, flat-bottom steering wheel is hard to fault.
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.
In terms of dimensions, at just under 4.4m long, a bit more than 1.8m wide and a fraction over 1.6m tall the Karoq is a relatively small medium SUV.
Yet, its 2638mm wheelbase means there's enough space between the axles for generous accommodation front and rear with enough room left over for a decent boot.
There's ample room for me, at 183cm, in the front with plenty of breathing space between driver and co-pilot. Not to mention heaps of storage including big door bins with room for large bottles, an open area in the centre console under an extending and height-adjustable centre armrest, various coin and oddments slots, a good size glove box, a broad lidded dash-top compartment and a drop down box near the driver's right knee.
Move to the rear, and sitting behind the driver's seat set to my position, I've got good head, leg and shoulder room. Best for two adults, although three would be possible for (cozy) short trips.
Three up to teenage kids will be fine back there, but if your kids are in a capsule, child seat or booster you'll be good with two but three will be a bridge too far.
Again there are door bins with enough room for oversize bottles, three cupholders in the fold-down centre armrest (one is 'venti'-sized) as well an oddments tray at the back of the front centre console and map pockets on the front seat backs. Adjustable ventilation is another plus.
With all seats up the Karoq offers a healthy 588 litres (VDA) of storage space, expanding to 1810L with the 60/40 split rear seat folded. A rear seat 'ski-port' style door also increases flexibility.
There are numerous bag and tie-down hooks as well as thoughtful storage spaces around the boot space. A full-size (speed limited) spare sits under the floor and while the tailgate misses out on power assistance, there's a typically useful dangling grab handle to help with closing.
For those keen on towing the FWD Karoq is rated up to a 1.5-tonne braked trailer (750kg unbraked).
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.
To tempt people away from the Toyota RAV4 juggernaut you need a distinctive brand personality, which the Karoq has in spades, as well as a standard features list long enough to entice but not so lengthy that it sends the asking price over the top.
And this new Karoq entry-grade model is set at $39,990, drive-away, which is a shot across the bow of the base RAV4 GX 2WD sitting at $39,760, before on-road costs.
It's also in the same ballpark as the X-Trail ST five-seat 2WD ($37,250 before on-roads) and Outlander ES five-seat 2WD ($37,740 BOC).
So, the balancing act between price and equipment lands with standard feature highlights including dual-zone climate control, adaptive cruise control, 18-inch alloy rims, auto LED headlights, an 8.0-inch multimedia touchscreen, wireless Android Auto and Apple CarPlay, a reversing camera, built-in nav and eight-speaker audio.
That's pretty handy, although it's worth noting while the start is keyless, entry to the car isn't, and while the Karoq Style and SportLine boast an auto tailgate, this grade misses out.
Clearly, there's been careful fine-tuning of the value equation but the car maintains a premium look and feel that stacks up well in the segment.
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 Karoq is powered by a 1.4-litre, all-alloy, direct-injected, turbo-petrol four-cylinder engine sending 110kW (at 6000rpm) and 250Nm (from 1500-3500rpm) to the front wheels via an eight-speed automatic transmission.
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.
Skoda's official combined cycle fuel economy number for the Karoq is 6.5L/100km, the 1.4-litre turbo-petrol engine emitting 147g/km of CO2 in the process.
On the launch drive program for this new entry-level model, covering city, B-road and freeway running along the coast south of Sydney, NSW, we recorded an average of 7.6L/100km.
That's useful for a conventional combustion engine without the benefit of electric hybrid assistance. Worth noting, however, minimum fuel requirement is the pricier 95 RON premium unleaded.
You'll need 50 litres of it to fill the tank which equates to a theoretical driving range of 770km using the official figure or around 660km using our on-test result.
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.
Despite riding on sizeable 18-inch alloys (shod with 215/50 Goodyear Eagle F1 rubber), first impressions behind the Karoq's wheel are dominated by how composed and refined it is.
Even on coarse, irregular B-roads the car remains supple yet balanced and well buttoned down in the corners. The steering is nicely weighted and road feel is good.
Skoda says the Karoq will accelerate from 0-100km/h in 9.2 seconds, which isn't ferociously fast but the 1.4-litre turbo four delivers its peak pulling power from 1500-3500rpm, which means you're never short of mid-range urge.
The smooth eight-speed auto also helps keep things on the boil although power delivery isn't always linear. Squeeze the throttle and the engine can take half a beat before responding in something of a rush.
Shift from 'Normal' to 'Sport' mode and the transmission will respond more urgently, holding on to ratios longer and changing down more readily. And if you want full control, move the lever over into the 'Tiptronic' manual position for satisfyingly rapid changes on-demand.
The engine remains quiet, only making its presence felt at higher revs, the supportive front seats remain comfortable over lengthy stints and the brakes (vented discs front, solid rotors rear) deliver firm, progressive stopping power even under the pressure of an enthusiastic twisty backroad run.
Under the heading of miscellaneous observations, the multimedia system is easy to navigate and quick to respond, the extending, height-adjustable front centre armrest is brilliant and the adaptive cruise system responds to changes quickly yet calmly.
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 Skoda Karoq's previous five-out-of-five ANCAP star rating has timed out, given the assessment was from 2017, so it's now unrated.
But that doesn't mean it's underdone in terms of active crash-avoidance tech, this base version featuring AEB (operational from 4.0-250km/h) with pedestrian and cyclist detection, adaptive cruise control, 'Lane Assist', 'Side Assist' (with rear cross-traffic alert), Parking Distance Control (front and rear), a reversing camera, rear AEB as well as tyre-pressure and fatigue monitoring.
If a crash is unavoidable, there are seven airbags on-board - dual front, front side, full-length side curtain and a driver's knee bag.
Multi-collision brake minimises the chances of subsequent collisions following an initial impact and there are three top tethers and two ISOFIX anchors for baby capsules and/or child seats across the second row.
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.
Skoda is ahead of the mainstream pack, offering a seven-year, unlimited kilometre warranty, which is two years up on the majority of the Karoq's competitors.
Roadside Assist is complimentary for the first year, renewed annually if you have your Karoq serviced at an authorised Skoda dealer.
The main service interval is 12 months/15,000km, which is in line with most of the competition, and Skoda offers a seven-year service pack for $2750, or $393 per workshop visit, which is competitive with much of the segment but some way off the Toyota RAV4 non-hybrid at $215 per service on a capped-price deal.
On top of that, through Skoda Choice you can opt for a Guaranteed Future Value offer ranging up to five years, with variable deposit and finance currently at a 6.99 per cent rate.
At the end of the term you can trade-in for a new Skoda, pay out the balloon amount and keep the car or simply hand it back.
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.