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.
I’m just going to cut to the chase here. This Honda Civic hybrid is a good car. A great one, even.
But for some reason, nobody is really buying it. And it’s not just because it’s not an SUV – it has been outsold in its segment this year by the the BMW 1 Series, the Mercedes A-Class, the MG4 EV, and the VW Golf. Premium and non-premium alike, they’ve all got the little Honda licked.
So, what’s going on? A CarsGuide investigation is required. Stick around and we’ll try to figure this out together.
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.
Talk about your new-car unsung heroes – I can't believe Honda's not selling more of these. So, if you can get over the price, and you worry it might be too small for you, I encourage you to check the Civic out. The back seat and boot are both bigger than you might expect, and the drive experience leaves most SUVs in the rear view mirror.
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.
Beauty. Eye. Beholder. All that. But I reckon this Civic looks fantastic. Low-slung and sporty. The perfect antidote to all those bland, beige SUVs currently doing the rounds.
New as part of the most recent refresh is the front-end treatment, a new front bumper, more body-coloured flourishes and new designs for the 18-inch alloys.
I think it looks sleek, premium and purposeful, and not at all boring.
Inside, though, it’s a little less adventurous, though I do adore some of the little design touches, like the perforated metal effect that spans the dash.
The central screen is pretty small by modern standards, and you don't want to push too hard on some of the touch points, like the gloss-black highlights on the doors, which feel flimsy, flexible and pretty cheap.
Now, the screen. Does UX design count in the overall design section? Let's say that it does. I haven’t really experienced less intuitive and user friendly cabin tech lately.
For example, I couldn't figure out (though I must admit I didn't resort to owner's manual) how to get Apple CarPlay to load automatically, if you can.
Instead I had to select my phone, cycle through several screens of approval, and then select my phone again, every single time I got in the car. I had a similar issue using Google maps, which simply wouldn't connect at all for me.
Good tech is easy and intuitive. This wasn't.
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 Honda Civic measures 4569mm in length, 1802mm in width and 1415mm in height, and as you've no doubt already noticed, it's not an SUV, rather a liftback-style sedan.
But if you feel like you need an SUV to move a family, I beg to differ. While the middle seat in the second row is too tight for adults (owing largely to the intrusive raised tunnel that runs through the middle of the cabin), the two window seats can absolutely fit adult humans. I'm 175cm, and had absolutely no issue sitting behind my own driving position.
But the biggest surprise is the boot, which opens to reveal a flat and wide storage space that can swallow 409 litres (VDA) of luggage. In real terms, that's more than enough for our pram and the assorted knick-knacks that go with it on a baby day out.
Unfortunately, though, there’s no spare. Instead you’ll find yourself wrestling with a hateful repair kit should you get a puncture, and you don't want to wait for roadside assist.
There's also twin USB ports in the back, as well as air vents, along with twin cupholders in the pulldown divider.
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.
Ah, so we may have hit the first Honda hurdle. Ours is the entry-level e:HEV L, and it’s a cool $49,900, drive-away. The top-spec LX is $55,900, on the road.
To put that into perspective, Toyota's two Corolla sedan hybrid grades are about $36K and $39K, drive-away, at the moment. The admittedly non-hybrid Golf starts at $39,990, on the road.
The German premium brands are still more expensive, but I think that might be at least part of the Honda’s problem. It now occupies a space between mainstream and premium, which might also be something of a no-man’s land.
Still, the entry-level L is decently equipped, with 18-inch alloy wheels wrapped in quality Michelin Pilot Sport rubber, all-LED lighting all around and key-less entry.
Inside, there’s synthetic leather and fabric seats, dual-zone climate, a 9.0-inch central touchscreen with Apple CarPlay and Android Auto, but also with Google built-in that provides mapping and updates and a 12-speaker Bose stereo.
Both Civic variants also arrive with a three-year subscription to 'Honda Connect', which gives you remote access to your car to lock or unlock it, pre-heat or cool the cabin, or set a geofence alert if your teenagers are borrowing it, that sort of stuff.
But… there are no full-leather seats, there's no sunroof, no wireless charging and you have to open the boot yourself.
The lack of all that doesn’t feel overly premium.
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 Civic range is an all-hybrid affair, which in this case is what Honda calls its 'two-motor hybrid', which pairs a 2.0-litre petrol engine with two electric motors, one being an electric generator, and the other being the actual propulsion motor which sends power to the wheels. Expect a total 135kW and 315Nm, which is sent to the front wheels via a CVT auto.
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.
Honda says you can expect 4.2L/100km on the combined (urban/extra-urban) cycle, but we found the fuel use was a still impressive 5.5L or so, admittedly mostly in the city.
The 40-litre tank drinks 91 RON 'standard' fuel, meaning its cheapish to fill up, and — using Honda’s numbers at least — should deliver a 950km driving range.
Yesterday, 91 RON was about $1.80 per litre meaning you can theoretically get from Melbourne to Sydney for around $75.
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.
First things first – I really, really like the way this Honda drives. There's a finesse, a confidence, in the drive experience that's sometimes missing from the new brands when they first arrive in Australia.
In short, it feels like it was engineered by people who really know what they're doing. That's the easiest way to describe it.
If you're used to driving older-fashioned hybrid systems you might be used to a bit of shuddering harshness when the engine kicks in, but that's simply not the case here.
Instead, the transition is seamless, with the Honda Civic making the choice for you and largely leaving you out of the process entirely.
Where the powertrain does let itself be more known is under heavier acceleration, with engine thrum seriously invading the cabin, without much in the way of flat-footed performance to accompany it.
But the magic of the Civic drive experience is in its balance. It's not a performance car, but there's real driver engagement to be found in the way it rides and handles. Equally, though, it's never uncomfortable, striking the balance between road-holding confidence and comfort really well.
Happy in the city, happy on a twisting road - this is not one of those smaller cars that leaves the drive experience as a secondary factor. It feels like it really has the driver at heart.
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 big safety news surrounding the Civic is that its eight airbags are joined by 'Honda Sensing', which packages up every safety system you can possibly imagine — forward collision warning, lane keeping, adaptive cruise, AEB – and delivers them as standard across the range.
But the bigger news is that, refreshingly, none of it is overly intrusive. Even the speed limit warning, which – as in most cars – always gets the speed wrong, just flashes gently on the driver display, rather than binging and bonging through the cabin.
The Civic Hybrid scored a full five-star ANCAP safety rating, with the score based on crash testing in Europe through Euro NCAP.
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.
The Honda is covered by a five-year/unlimited-kilometre warranty, and servicing is every 12 months or 10,000km.
There is a capped-price servicing program, called 'Low Price Servicing', which means your first five services are $199, but don't cover things like brake pads and tyres.