What's the difference?
The Toyota RAV4 is arguably Australia’s darling and has been for years. It’s long set the benchmark in the mid-size SUV segment - a position rivals like the Hyundai Tucson, Kia Sportage and Mazda CX-5 would love to occupy.
It’s also been close to a decade since we’ve seen anything new from the RAV4, so expectations for this sixth-generation update are understandably high. For this family review, we’re testing the flagship Cruiser Hybrid 2WD, which brings the most features and the biggest price tag in the line-up.
On paper, it promises meaningful upgrades, particularly in technology and refinement, while holding onto the practicality and efficiency that made it so popular in the first place.
But with stronger competition and rising expectations in this segment, the question is no longer whether the RAV4 is good, it’s whether it’s done enough to stay at the top.
There aren’t many cars like the new Cupra Terramar VZe as it’s a mid-size plug-in hybrid flagship that sits firmly at the premium end of the mainstream market. That’s either a huge advantage… or it’s not.
Because when you don’t have a clear set of rivals, you tend to stand out.
There are alternatives, of course. Things like the BYD Sealion 6 Premium, Chery Tiggo 7 Super Hybrid, GWM Haval H6 GT, Mitsubishi Outlander PHEV and Volkswagen Tiguan eHybrid - but they each approach this space a little differently, whether it’s in pricing, positioning or execution.
Which leaves the Terramar VZe carving out a niche for itself. So the question is, does this plug-in hybrid make a compelling case?
The new Toyota RAV4 Cruiser Hybrid 2WD builds on what made it so popular in the first place. It’s easy to drive, efficient and well equipped, with enough features to suit a wide range of buyers.
The updated technology is a clear step forward and lifts the overall experience, but there are still elements that feel out of step with the flagship positioning, particularly the use of hard plastics and some less refined finishes. Even so, it remains a practical and well-rounded option in the segment.
The Cupra Terramar VZe looks fantastic on the road and confidently handles most things you throw at it. The plug-in hybrid set-up offers a nice blend of performance and efficiency. But… when you start digging into the price and ownership promise and what you do (and don’t) get for your money, it doesn’t always feel like the most compelling package. Sexy and sporty? Definitely. Value-for-money? Mmm.
The previous RAV4 had a distinct, unmistakable look, particularly from the rear but the new design feels a little more subdued by comparison.
It leans into a more conventional SUV shape, with a front grille that borrows heavily from the HiLux, including a strong use of body-coloured panelling. It still presents well at the kerb, but it doesn’t quite have the same standout presence as before.
Inside is where the biggest changes have happened. The dashboard sits lower, there are more storage cubbies and the new displays modernise the space nicely. There are fewer physical buttons than before, with some seat and climate controls now integrated into the touchscreen. It’s not my preference, but overall the layout remains intuitive and easy to navigate.
Looking around the cabin, it still feels very Toyota in its execution. There’s a noticeable use of plastics, even in this flagship grade, though there are enough soft-touch areas to keep things feeling solid and well put together.
One small drawback is the dual-opening, reversible centre console lid as it tends to squeak and doesn’t feel quite as robust as the rest of the interior.
Design is one of the areas where the Terramar makes a strong first impression. It’s sharply styled, and very much aimed at buyers who aren’t quite ready to let go of their sportier tastes, even if their car choice suggests otherwise. The stance is wide, the proportions are tidy and those 20-inch copper alloy wheels do a lot of the heavy lifting visually.
Up front, the grille features a triangular LED lighting signature that, for anyone who grew up with it, looks a little like the Triforce (Zelda). Around the back, there’s a full-width light bar with a 3D illuminated logo which enhances the overall 'cool-edge' style the Terramar has.
Inside, that same theme carries through. The cabin is clean but still visually interesting, with plenty of soft-touch materials and leather throughout. Copper-coloured accents are used generously but not to the point where it feels overdone and give it a firm identity.
The optional panoramic roof lifts the space and the 12.9-inch central display sits front and centre, giving the cabin a properly high-end feel.
As far as mid-size SUVs go, the Toyota RAV4 still hits a solid beat when it comes to overall practicality. It doesn't get everything right but it does enough.
The space up front is generous and the seats are comfortable, especially with their added heat and ventilation functions. Access is decent enough with wide door apertures and an easy ground clearance and the only drawback is the high lip in the footwell, which can catch your foot slightly when getting out.
Storage is a highlight due the sheer number of options with a deep middle console, centre trays, sunglasses holder and dashboard shelving. Add in a couple of cupholders and drink bottle holders and it shouldn't be difficult to keep the cockpit tidy.
In the second row, there’s plenty of space for adults, with good leg- and headroom and a seat that’s supportive enough for longer trips. The leather trim feels nice, and practical touches like large map pockets and cupholders are appreciated.
However, for a flagship grade, it feels a little underdone on features. You get rear air vents and USB-C ports, but miss out on things like climate control, sunblinds and more thoughtful storage solutions. There are two ISOFIX points and three top-tether anchors, though realistically two child seats will fit best.
As mentioned, the technology upgrades are a big step forward. The new multimedia system is clean, responsive and easy to use, and while wireless Apple CarPlay can get confused if you have multiple device connections stored, it works seamlessly once pared back to one.
There’s built-in satellite navigation, a highly customisable digital instrument cluster that can display directions, and a solid mix of charging options including dual wireless pads, a 12-volt socket and four USB-C ports (two in each row).
Around the back, the boot is well-shaped and easy to load, with a claimed 705L of capacity when measured to the roofline. A powered tailgate, 12-volt socket and temporary spare tyre all add to its usability.
That said, the adjustable boot floor and cargo cover feel a bit flimsy and awkward in practice, which is slightly at odds with the otherwise practical and family-friendly focus.
In terms of practicality, the Terramar feels a little mixed depending on where you’re sitting.
Space and comfort first. The front row is where it feels most at ease. The sport seats are supportive, with enough adjustment to stay comfortable on a longer drive and the added heating and driver’s memory function round things out nicely. That said, elbow room can feel a little tight if you’re sitting alongside someone broad-shouldered.
The rear row is more of a compromise. Legroom behind my driving position is on the tighter side, and for context, I’m 168cm, though headroom holds up reasonably well, even with the panoramic roof. The shape of the seat base and storage cut-outs also make the bench feel narrower, so it’s better suited to two adults than three.
Storage is about what you’d expect, without really exceeding it. Up front, the glove box is the largest cubby, supported by a centre console, a phone cradle and a pair of cupholders, although they’re different sizes, so only one emotional support bottle will fit.
In the rear, it’s a similar story. You get a couple of bottle holders and cupholders, but you miss out on map pockets.
On the tech and amenities front, most functions are housed within the 12.9-inch media display. The graphics are clear and the touchscreen is responsive, though the touch-based climate controls underneath it can be fiddly at times. That said, the overall layout becomes fairly intuitive after a short adjustment period, even if physical buttons would still be welcome.
Connectivity is well covered, with wireless Apple CarPlay and Android Auto, the former holding a steady connection during my time with it, along with built-in navigation. Charging options are solid, too, with four USB-C ports across the cabin, a 12-volt outlet and a wireless charging pad.
The rear gets its own climate control, though without fan speed control, and again, at this price point, it feels like there’s room for a little more in the way of convenience features - particularly things like heated outboard seats.
At the back, boot space comes in at 400L, which is the smallest in the Terramar range due to the battery placement. It’s broadly in line with key alternatives like the BYD Sealion 6 Premium, which offers slightly more capacity, but the difference isn’t dramatic in day-to-day use.
In practice, it’s been enough for a week of errands with a small family, and the flat loading floor and powered tailgate make it easy to live with. There’s no spare tyre, though, just a puncture repair kit, which won't suit everyone.
There are six grades available in the new RAV4 line-up, split across a hybrid powertrain for now, with a plug-in hybrid set to join the range soon. We’re in the flagship Cruiser FWD hybrid for this family test, which is priced from $56,990, before on-road costs, and yes, that’s creeping close to $6.0K more than the outgoing model.
But here’s the twist, it’s still one of the more affordable options compared to its nearest rivals. The Hyundai Tucson Hybrid Premium starts at $58,350 MSRP, while the Kia Sportage GT-Line Hybrid FWD jumps significantly higher at $71,540 MSRP.
Even the Mazda CX-5 Akera, which sits in the same segment from $54,990, doesn’t offer a hybrid powertrain. So while the price hike stings a little, the value argument still stacks up.
Straight outta the gate, the biggest glow-up is the tech. The new 12.9-inch touchscreen runs Toyota’s 'Arene' operating system, bringing cleaner graphics, a more intuitive layout and over-the-air updates. It’s not as flashy as some rivals, but it’s a big step forward from the outgoing system and it’s easier to live with day-to-day.
There’s also a refreshed 12.3-inch digital instrument cluster, wireless Apple CarPlay and Android Auto, a colour head-up display and a digital rearview mirror.
Add in the nine-speaker JBL sound system, dual wireless charging pads, four USB-C ports and built-in satellite navigation and you have a nicely rounded tech package.
Being the flagship, the Cruiser leans into the premium feel with heated and ventilated electric front seats, leather upholstery, heated rear outboard seats and a panoramic moonroof. But interestingly, those last two are the only standout upgrades over lower grades.
Practical items include a powered tailgate, 12-volt socket and a temporary spare tyre but you miss out on some top-grade items in the second row that you might expect. Like climate control, device pockets and sunblinds. Omissions families will notice.
The new Cupra Terramar is available in four grades, and we’re in the flagship VZe, the only one to feature a plug-in hybrid powertrain, priced from $77,990, before on-road costs.
Given where it sits, there’s still not a lot that lines up neatly against it. The closest is probably the Volkswagen Tiguan eHybrid R-Line, expected to land at around $74,550, before on-roads, along with the Mitsubishi Outlander PHEV EV GSR from $73,990 MSRP.
Beyond that, you start to drift into more value-focused territory with options like the BYD Sealion 6 Premium ($52,990, MSRP), Chery Tiggo 7 Super Hybrid Ultimate ($43,990, drive-away), and GWM Haval H6 GT Ultra ($50,990, drive-away). So, significantly cheaper, while still offering a fairly generous level of equipment.
As for the Terramar VZe, it doesn’t arrive empty-handed. You get leather upholstery, electric front seats with heating, a heated steering wheel, wireless Apple CarPlay and Android Auto, 20-inch alloy wheels, a full LED light suite, a 12.9-inch media display, 10.25-inch digital instrument cluster and a 12-speaker Sennheiser sound system. There’s also built-in navigation, four USB-C ports, a 12-volt socket and a wireless charging pad.
It’s a solid list but at this price point a couple of omissions stand out. Front seat ventilation isn’t offered, there’s no heating for the rear outboard seats and the panoramic sunroof, which feels like it would round things out nicely, is still a $2000 option.
None of those are deal-breakers on their own, but in this part of the market, they’re the kind of details that you'll notice.
Under the bonnet, the RAV4 pairs a 2.5-litre four-cylinder petrol engine with an electric motor as part of its updated hybrid system. Toyota doesn’t quote a combined torque figure, and total power has dropped slightly to 143kW, down 17kW from the previous front-wheel drive variant.
On paper, that reduction might raise a few eyebrows, but in practice it’s not something you notice often. What is more apparent is the improvement in refinement, with smoother transitions between electric and petrol power that make the overall driving experience feel more polished.
Under the bonnet, the Terramar VZe pairs a 1.5-litre, four-cylinder, turbo-petrol engine with a single electric motor, for a combined output of 200kW and 400Nm.
On paper, those figures sit a little behind some of the more value-focused plug-in hybrid options, like the BYD Sealion 6 Premium and GWM Haval H6 GT, and it’s also front-wheel drive, where some rivals offer all-wheel drive.
In practice, though, it doesn’t feel underdone. The six-speed automatic shifts cleanly and the transition between electric and petrol power is smooth. As a whole, the set-up feels well calibrated.
Efficiency remains a strong point for the RAV4. Toyota claims a combined cycle (urban/extra-urban) fuel consumption figure of 4.5L/100km, and with a 55-litre fuel tank, that equates to a theoretical driving range of over 1000km.
In the real world, my average came in at 5.5L/100km across a mix of urban and open-road driving, which is an impressive result. The only caveat is Toyota’s recommendation for 95 RON premium fuel, which may add slightly to running costs over time.
The VZe uses a 20kWh lithium-ion battery, which is on the smaller side compared to some alternatives but it still delivers a useful amount of electric driving range at 109km (WLTP).
With its Type 2 CCS charging port, you can access DC fast charging at up to 50kW, with a claimed 0-80 per cent top-up taking around 26 minutes. On AC, it’s more of an overnight affair, so it suits a home charging routine.
Officially, energy use is rated at 1.8L/100km on the combined (urban/extra-urban) cycle, and after a mix of highway and urban driving, I saw a trip computer figure of 1.5L/100km.
That’s an impressive result but it comes with a bit of context. I'm charging it daily to make the most of the claimed electric-only range, and that has a big influence on the numbers you’ll see in the real world.
On the road, the RAV4 Hybrid 2WD performs confidently across most situations. It can sound a little strained when pushed hard, but there’s enough power on tap to keep up with traffic without issue.
The ride leans towards slightly firm, paired with responsive steering that gives it a more controlled feel through corners than you might expect. It remains stable at speed and around town feels punchy and easy to drive.
For those who prefer a stronger regenerative braking effect, switching to 'B' mode adds a noticeable increase, which works well in urban traffic. Refinement is another highlight. It’s impressively quiet on the move, even at highway speeds and feels well suited to longer trips.
One of the standout improvements is the 360-degree camera system. Where the previous version fell short, this one is clear and easy to use, making parking straightforward.
On the road, the Terramar VZe makes an immediate impression. Power delivery is prompt, and even with the battery depleted, it feels responsive off the mark. There’s enough in reserve that you don’t feel like you’re chasing performance, even when you lean on it.
The handling follows a sporty brief. Suspension tuning does a good job of smoothing out the bigger bumps, but it still lets a fair amount of road feedback in, particularly when you’re pushing through a corner. The steering is on the firmer side and the brakes are quite sensitive, which takes a moment to adjust to, but together they give the car a more engaged feel. That said, it won’t be to everyone’s taste.
Visibility is one area that takes a bit more effort. The lower window line and thicker pillars give it a more enclosed feel than a typical mid-size SUV, so you find yourself being a bit more deliberate with blind spot checks, particularly around the A-pillar.
Ride comfort holds up despite the firmer set-up, and the sports seats do a good job of keeping you settled. Around town and under electric power, the cabin is impressively quiet, though you notice more road and engine noise creeping in at highway speeds or under heavier acceleration.
Around tighter spaces, it feels smaller than it is. The 11.5-metre turning circle and quick steering make it easy enough to manoeuvre, and the 360-degree camera is a useful addition, although the image quality doesn’t quite match the expectations set by the price point.
Due to myriad delays, Toyota wasn’t able to submit the new RAV4 for testing with ANCAP before the new and more stringent 2026 protocols kicked in, and thus it’s unrated for now, with a yet-to-be-detailed upgrade to come later to meet the stricter standard.
For now, it has a strong suite of safety equipment included, like eight-airbags, side exit assist, front and rear cross-traffic alert and emergency phone call capability. The adaptive cruise control is one of the better systems I’ve used in a long time and only the driver monitoring is annoyingly intrusive, otherwise the safety stuff seems well-calibrated for everyday use.
Other safety equipment includes lane departure warning, lane keeping aid, active steering assist, traffic sign recognition, and forward collision warning. There is also autonomous emergency braking (AEB), car, pedestrian and cyclist detection and junction turning assist.
For families there are two ISOFIX child seat mounts and three top-tether anchor points.
On the safety front, the Terramar holds a maximum five-star ANCAP rating from 2025 testing and comes equipped with seven airbags.
The standard active safety suite is comprehensive, covering the essentials like lane keeping aid, lane departure warning, lane centring, forward collision warning, blind-spot monitoring, rear cross-traffic alert, driver attention monitoring and a side-exit warning system.
In use, the adaptive cruise control is well calibrated, though the steering assist is a little overzealous. It requires quite a firm hold on the steering wheel to override warnings or prevent emergency intervention... like braking, as it did me going 80km/h in a tunnel.
It’s also worth noting a couple of omissions. There’s no emergency call functionality, and hill descent control (HDC) isn’t included.
The autonomous emergency braking has junction, car, cyclist, motorcyclist and pedestrian detection and is operational form 5.0-85km/h (up to 250km/h for car detection).
The RAV4 is backed by Toyota’s five-year, unlimited-kilometre warranty, which now sits slightly behind some rivals offering longer coverage (upwards of seven-years on some).
Servicing is more competitive. A five-year capped price program comes in at $1625, averaging $325 per visit, with intervals set at 12 months or 15,000km. That’s well priced for the segment.
You also get complimentary roadside assistance, which is service-activated, along with a one-year subscription to the 'myToyota Connect' app. This allows remote access to functions like climate control and locking or unlocking the vehicle, adding a layer of convenience.
In terms of ownership, the Terramar is covered by Cupra’s five-year, unlimited-kilometre warranty. That’s fairly standard for the segment, though it sits behind some rivals now offering longer seven-year plus programs. Inclusion of five years' roadside assistance is a welcome addition.
Servicing can be pre-purchased with either a three- or five-year plan, with the latter priced at $2590, which is in line with what you’d expect for this class. Intervals are set at every 12 months or 15,000 kilometres.
One thing to keep in mind is the size of the Cupra service network. It’s still relatively limited, with around 14 centres nationwide, so depending on where you’re based, that may take a bit more planning.