What's the difference?
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.
Can you believe the 1 Series is already in its fourth generation? It might not look incredibly like it, because this new car looks a little like the third.
But it’s been more than half a decade since the F40 1 Series debuted, so BMW decided it was already time for a new kid on the block. Meet the F70.
It’s just landed in Australia and it promises new-gen tech and features compared with its predecessor. We checked out BMW’s new baby at its Australian launch to find out if it delivers.
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.
A brief dalliance with the 1 Series has left me impressed, if wanting to spend more time with it to get a better assessment of the day-to-day liveability of BMW’s entry-level model.
It’s a compelling offering if you’re after a premium small car, and even without the performance of the M135, the 118 is feature-packed.
Keeping pricing competitive should help the 1 Series buck the trend of buyers opting for small SUVs, but ultimately it’s just refreshing to see BMW putting effort into keeping a hatchback relevant (and up-to-date).
Note: CarsGuide attended this event as a guest of the manufacturer, with meals provided.
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.
The 1 Series has worn many faces over the generations and, like a lot of BMW designs that depart from tradition, this one might need to grow on some people.
That’s not to say there’s not a lot to like about the F70, but as BMW evolves its design language some changes might ruffle feathers - a lack of the iconic ‘angel eye’ headlight style being one.
But there’s still a kidney grille up front, with new design elements, plus those headlights that have a new vertical light signature are now sleeker than before, giving the new 1 a different ‘character’.
But from the rear, there are baby 3 Series Touring vibes, and it’s hard to find anything that might upset purists - there’s even the 'Hoffmeister kink' at the c-pillar. That’s the way the window angles back towards the front at the bottom.
Inside, the 1 Series has some proper sporty elements, even in the 118, that reference the M development that went into it.
There’s M-coloured stitching up over the dash fabric, for example, and illuminated aluminium panels with M-coloured lighting.
The steering wheel, wrapped in leather, is also an M feature, plus sporty seats are even present in the 118.
The interior is an overall cleaner look, in part thanks to the proliferation of features accessible by touchscreen, but BMW is refraining from going full ‘Tesla’ and removing all the buttons from the cabin.
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.
Yes, a brand like BMW would probably find it hard to do away with buttons for things like drive modes and things like volume controls or car settings.
Even though a lot of them are shortcuts to a touchscreen menu, it means not needing to scroll or hunt for important driving-based features and options on the 10.25-inch screen.
Even the climate controls are permanently available on the screen so that there’s minimal distraction.
For most non-essential features, however, BMW’s Operating System 9 is a far cry from the easy-to-use iDrive system of just a few years ago, the media control wheel that fell easily to hand and navigated a simple multimedia system of only a few sub-menus.
Fortunately, the screen and everything in the cabin is within reach of the driver, so there’s no awkward leaning or stretching to do anything mid-drive.
The cabin’s physical space is otherwise nicely laid-out, the phone charger pad is out of the way, cupholders fit most receptacles nicely and the door card can hold two regular water bottles plus other small items.
There’s even a small storage ‘shelf’ under the central vents, and near the wireless charger are two USB-C ports and a 12-volt plug.
The ergonomics of the driving position and steering wheel are well-sorted, and seat adjustment and height feels good for both engaged or relaxed driving positions.
Behind that, the second row could be more spacious, even though I managed to fit my 178cm frame behind my own seating position just fine.
There’s not a lot of room to move or stretch out, so most adults will probably find the back seat suitable for short trips only.
Behind that, there’s 380 litres of boot space, or 1200L with the seats folded down.
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 1 Series isn’t much more expensive than before, despite a decent uptick in kit.
At $56,500 before on-roads for the entry grade 118, it’s less than $2000 pricier than its predecessor. It’s about the price of a VW Golf GTI or Subaru WRX, but trades engine power for badge power, as well as a series of features you’d expect from a premium small car.
A 10.25-inch multimedia touchscreen and 10.7-inch driver display are standard, with wireless phone charging, electric heated seats in Veganza synthetic leather, adaptive suspension and plenty of sporty styling thanks to the M Sport pack.
There’s a few more helpful features for keen drivers, even in the 118. Adaptive LED headlights with high beam assist, a head-up display, BMW’s 'Parking Assist Plus' function, speed limit recognition and tyre pressure monitoring.
The 1 Series also has keyless entry and start, an automatic tailgate, plus some standard stuff like a 40/60 split-fold rear seat and (unfortunately) a tyre repair kit under the boot floor rather than a spare tyre.
Then there’s the M135 xDrive, the hot hatch of the pair.
It starts at $82,500 and comes with extras like a massage seat for the driver, a heated steering wheel, a Harman/Kardon sound system, racier styling and a black roof, plus performance goodies like a bigger engine.
The M135 is a bit more expensive than before though, by almost $6000, and comparable rivals like the Audi S3 remain in the mid-$70K range.
Two options packs are available, with the 118's $5000 Enhancement Pack adding Metallic paint, 19-inch M alloys, a heated steering wheel, a sunroof, massaging front seats, a Harman/Kardon sound system and Driving Assistant Professional.
There's also an M Sport Package Pro able to be added to either variant, which adds sportier M styling, a black roof for the 118, and M Sports seats for the front row. This pack costs $2462 for the 118 or $2700 for the M135 xDrive.
Two options packs are available, with the 118's $5000 Enhancement Pack adding Metallic paint, 19-inch M alloys, a heated steering wheel, a sunroof, massaging front seats, a Harman/Kardon sound system and Driving Assistant Professional.There's also an M Sport Package Pro able to be added to either variant, which adds sportier M styling, a black roof for the 118, and M Sports seats for the front row. This pack costs $2462 for the 118 or $2700 for the M135 xDrive.
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.
The two 1 Series variants have rather different running gear.
The 118 comes with a 1.5-litre three-cylinder turbo petrol engine that drives the front wheels via a seven-speed dual-clutch transmission (DCT).
It makes 115kW and 230Nm, and BMW says it’ll hit 100km/h in 8.5 seconds.
That’s in comparison to the beefier 2.0-litre four-cylinder unit in the M135, also turbocharged, but driving all four wheels via a similar seven-speed DCT.
It makes 233kW and 400Nm, and it’ll crack 100km/h in 4.9 seconds according to the Bavarian brand.
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.
BMW says the 118 will sip 6.4 litres of recommended 95 RON fuel for every 100km covered, with its 49-litre tank the same as the M135’s.
In that variant, fuel use increases to 7.8L/100km, as does recommended fuel quality to 98 RON.
We didn’t get a chance to test fuel consumption properly on the launch, so keep an eye on a future review for that, but given the relatively high claim even for the 118, we’d expect the 1 Series isn’t the most frugal drinker.
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 launch drive for the 1 Series included some outer-suburban Melbourne traffic, a stint of highway driving down towards the Mornington Peninsula, and a semi-rural road loop for each variant before the return journey.
So, noting that we didn’t quite get the chance to really work out what it might be like to live with the 1 Series day-to-day, first impressions showed good signs.
Both variants still drive much like you’d expect from even a front-drive BMW, let alone the AWD M135, but the chassis and suspension seem like they’d be good counterparts on a daily drive.
In the M135, communication and compliance seemed well-balanced with each other for even some particularly rough surfaces, and after torrential rain there were some potholes that would properly upset most cars that didn’t faze the 1 Series too much.
The 118 seemed to let a little more road noise into the cabin, but that might have been a symptom of different road surfaces.
The steering is accurate, but the feel in both is a little heavier than needed, especially with the thick-rimmed BMW steering wheel that you’ll know about if you’ve driven anything from Munich in recent years.
It’s a very easy car to drive fast, especially with the combination of 233kW, 400Nm, and all-wheel drive at the M135’s disposal.
The chassis and tyres work quite well together to not only hold a corner at impressive speed, but also keep the car stable so that traction isn’t an issue when launching out.
There’s also the joy of hearing a turbo spool and flutter under load, which is hard to deny as a draw for petrolheads.
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.
There’s plenty of active safety in the new 1 Series, new kit includes an updated 'Driving Assistant Plus', BMW calls it.
It features all the driving assist functions like lane departure warnings and rear cross-traffic alert, but the M135 gets a higher-spec version with extras like front cross-traffic alert, side collision prevention, and evasion assist.
This can be added to the 118 for $5000 in the Enhancement Package, but it seems a bit stiff to put safety features behind a paywall alongside items like a sunroof and a high-end audio system.
Mercifully, the 1 Series’ active safety systems are all pretty unobtrusive. There are very few ‘bings and bongs’ as we’ve come to call them, and any warnings are generally subtle.
There’s a quick way to turn most of them off via a physical button near the gear selector, and its adaptive cruise control is well tuned for urban, highway and rural driving.
Otherwise, the third-gen 1 Series scored five stars with ANCAP in 2019, so we will wait and see if its successor maintains that score.
It’s also got six airbags including front and side, as well as curtain airbags covering both rows.
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.
BMW’s got a fairly standard five-year/unlimited kilometre warranty.
The brand also uses a condition-based servicing system, which uses the multimedia to alert the owner when maintenance is required.
There are servicing packages which remove some of that uncertainty, in the 1 Series’ case a five-year, 80,000km pack costs $2210.