Toyota RAV4 vs Honda City

What's the difference?

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Toyota RAV4
Toyota RAV4

$45,990 - $66,430

2026 price

Honda City
Honda City

2018 price

Summary

2026 Toyota RAV4
2018 Honda City
Safety Rating

Engine Type
Inline 4, 2.5L

Inline 4, 1.5L
Fuel Type
Unleaded Petrol/Electric

Unleaded Petrol
Fuel Efficiency
4.8L/100km (combined)

5.7L/100km (combined)
Seating
5

5
Dislikes
  • Price hikes
  • Needs ANCAP rating
  • Divisive styling

  • Underdone engine
  • Average CVT performance
  • Multimedia system is a disaster
2026 Toyota RAV4 Summary

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.

@carsguide.com.au The 2026 Toyota RAV4 is here and it looks like this… sort of. #toyota #rav4 #toyotarav4 #cartok #fyp ♬ original sound - CarsGuide.com.au

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.

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2018 Honda City Summary

Honda built its four-wheeled automotive empire on the back of small cars, flying in the face of 1970s convention that bigger was better. As the ubiquitous Civic grew larger and larger, a niche for a smaller car appeared, and that niche was subsequently filled by the City in sedan guise, and the Jazz hatch that sits alongside it.

The buying public, however, is simply not as interested as it once was in small hatches and sedans, and Honda, along with other importers, is feeling the pinch when it comes to slumping sales for its smaller models.

But are we all missing out on something here? After all, the Thai-built City is priced from a rock-bottom $15,990 in base manual form – which is not a lot of money for a Honda.

We’re trying the range-topping, $21,590 VTi-L to see what we may have been missing.

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Deep dive comparison

2026 Toyota RAV4 2018 Honda City

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