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.
Australia is experiencing a mass extinction event.
Like the dinosaurs before them, and hopefully not the bees in the near future, the sub-$20,000 car is nearing the bitter end.
An evolutionary dead-end, as higher emissions and safety regulations relegate older models (read Mitsubishi Mirage) to the great scrap-heap in the sky and prevent newer ones (read Honda Jazz) from leaving their local markets.
For you, this means there are quite literally a handful of brand-new vehicles left in Australia which wear before-on-road price-tags under the magic $20,000 number.
One of them is the car we’re looking at for this review: The Kia Rio S, with the catch being you’ll have to be happy changing gears yourself.
So, is this most basic Rio worth your while, or is it best left as a puzzling fossil for future generations to study? Let’s have a look.
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.
The Rio S Manual is a fun-to-drive little car with a big practicality and multimedia offering in a segment rapidly heading towards extinction.
While some elements of the drive experience are reminiscent of budget cars from 10-20 years ago, Kia makes up for it by wrapping the Rio in a contemporary looking and feeling package, ready for the buyer who needs no frills and demands no nonsense. Until the manual transmission goes the way of the dodo, there is almost no better option.
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.
While notable equipment is missing, the Rio reclaims lost ground with the way it looks, and to a degree, the way it feels.
Ever since this new generation hatch launched, I’ve thought it brings a slick modern design to the city-car space, and even in its most rudimentary form as-tested (our car even came in the most basic ‘Clear White’ paint) it’s a great looking little hatch.
Sure, it doesn’t have the romance factor of the Fiat 500, nor the more delicate curvature of the much more expensive new-generation Toyota Yaris, but it certainly has a more refined visage than, say, the MG3 whilst feeling a bit more grown-up than the Suzuki Swift.
Solid, squared-off lines give this car a sporty pose, and its frowny-face and blocky rear round out a stout city-car persona, and I especially like the way even this most basic trim is adorned with contrast pieces, a spoiler above the boot lid, and body-coloured door handles and mirrors.
Sure, the 15-inch steelies dress it down a bit, but on the Rio these leave the impression of financial prudence rather than cost-cutting.
Inside is basic but tidy. The overall look maintains a hint of sportiness, with an appealing symmetrical finish to the dash.
There’s no question the Rio is a budget model when it comes to the touch though, with everything either a soft polyurethane or a nasty hard plastic, so while it all might look neat it’s far from the most comfortable place to be for long periods of time.
The basic dot-matrix multifunction display, chunky plastic air-conditioning controls, and polyurethane items from the wheel to the handbrake and shifter are reminders of a bygone era, but the overall aesthetic of the driver’s space is pleasing.
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.
I'd argue the key reason to buy the Rio at this end of the market is that it has the most space and largest cabin relative to its rivals, bar maybe the Suzuki Baleno.
All-round practicality is great, with front passengers scoring a low, sporty seating position with a high roof, and so much width in the cabin it almost feels like the Rio belongs in the next segment up.
Storage options up front include a large bottle holder and bin in each of the doors, dual cupholders next to the handbrake up front, and a large storage tray underneath the climate unit. Unlike the Yaris or Mazda2, the Rio features a small armrest console box, which gives a small lift to the ambiance of the cabin.
Back seat passengers are treated to great space for this segment, which feels nice and open courtesy of the large rear windows. At 182cm tall, I have airspace for my knees behind my own driving position, as well as relatively healthy headroom and ample width, which is again more like a car in the next segment up.
Rear passengers don’t get adjustable air vents, but there is a single USB port, a single pocket on the back of the passenger seat, and small bottle holders in each of the doors.
Perhaps the Rio’s biggest drawcard is its boot capacity, which at 325 litres is one of the largest in the city car class. Unlike the Yaris, Mazda2, or Suzuki Swift, the Rio will actually accept the CarsGuide three-piece luggage set with the rear seats up, although the rear view was obscured by the medium case.
Thanks to the boxy roofline, the Rio offers a cavernous 980L with the rear seats folded down, and despite its abundance of room, maintains a space saver spare wheel under the floor.
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.
Value seems less important here when you’re contending with a limited list of potential options at this end of the market.
The Rio S manual currently wears an MSRP of $19,690, and if you’re able to shuffle cogs yourself, it counts its rivals as the Suzuki Baleno GL ($18,490), Suzuki Ignis GL ($19,490), or Fiat 500 Lounge ($19,550).
There’s also the option of the MG3 (from $18,990) or Kia’s own much smaller Picanto (from $15,990).
I’m pleased to report the Rio S is one of the best among these options, though. Not only is this car much more modern in terms of its platform and design than pretty much anything on that list, it packs great standard equipment, too.
The major wow-factor item is the Rio’s best-in-class multimedia system, consisting of an 8.0-inch touchscreen with wireless Apple CarPlay and Android Auto connectivity, just one of the areas where this car will grab eyes over rivals.
Elsewhere is a predictably honest list of standard equipment, including basic halogen headlights, 15-inch steel wheels, manual air conditioning, cloth seat trim with a polyurethane steering wheel, a small multifunction display in the dash, two USB ports, a six-speaker audio system, and surprisingly, steering-wheel mounted controls.
There’s no keyless entry or push-start ignition, and this level of equipment makes you feel lucky to have automatic headlights. Sadly, the S manual also misses out on the basic luxury of cruise control.
It’s cheap, missing a lot of gear, and feels it with an abundance of plastic trims, but somehow this car gets by with almost everything you really, truly need. Sure, it’s a bit of a hark back to the equipment lists of the early 2000s, but if you’re just looking for a basic car to get the job done, you could do far worse than this Kia with its impressive multimedia offering.
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 Rio is beginning to fall behind here with an antiquated 1.4-litre four-cylinder non-turbo petrol engine. Peak outputs aren’t far off where they should be for this segment, with 74kW of power and 133Nm of torque, although they arrive at the most distant end of the rpm range (6000rpm and 4000rpm respectively) so you need to rev it.
It can be clumsy to extract this power, too, with the engine paired in this circumstance to a six-speed manual which leaves a lot to be desired in terms of action and clutch feel.
While the abundance of ratios can be beneficial for fuel consumption, it’s clear this car was designed to be paired with the more modern three-cylinder turbocharged engine only available on the top GT-Line trim.
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.
The Rio S manual has an official combined cycle fuel consumption rating of 5.6L/100km, which is about right for a light car with a small engine.
On test, covering largely urban kilometres, I saw a higher but not unreasonable 7.4L/100km. Still, this number isn’t too far off what some larger cars with 2.0-litre engines are capable of.
Rios with this engine accept entry-level 91RON unleaded fuel, and have 45-litre fuel tanks. They are only compliant with Euro 5 emissions regulations.
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.
A six-speed manual with a tiny non-turbo engine is an absolute oddity in today’s new car market, but as a result of its rudimentary approach, there’s something refreshingly honest about the Rio S.
The engine requires a wringing to extract the desired result, and a lot of action on the gears, as six speeds proves to be quite a few to work your way through before you achieve cruising speed.
As so much interaction is required with the transmission, I wish it was tighter when it comes to the clutch which feels a bit doughy at the best of times.
The Rio is very organic, though, with next to no electrical assistance for any of its interaction points offering the driver a high level of control.
The steering is direct, but as a result of a cheaper rack (with less teeth compared to this car’s Stonic relation), it feels simple and brittle when it comes to feedback.
The same criticism can be levelled at the suspension, which errs on the side of firm. This attribute combines with the low seating position to make even this most basic Rio an absolute hoot in the corners.
But it can be a little crashy over every-day potholes and corrugations, despite the abundant amount of rubber cladding the 15-inch steel wheels.
Visibility is superb out of this little car’s big windows, making you feel in control of your surroundings (necessary in the multi-lane confines and tight parking conditions of a city), and ergonomics in the cabin are absolutely on-point with the large touchscreen elements easy to reach and the instruments taking a basic no-nonsense form.
While noise levels are okay at urban speeds, they pick up above 80km/h, making the Rio more unpleasant to drive over long distances than, say, the more upmarket-feeling Yaris.
The Rio does find its place in this price bracket as a fun-to-drive, but predictably rudimentary experience, for the niche audience of drivers seeking an entry-level car who are still able to shift gears themselves.
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.
Sadly, the Rio S misses out on any advanced active safety items. This is one area where city-sized cars are struggling to keep up, as expensive active safety systems tend to push them well into the mid-$20,000 region.
Unlike the mid-range Rio Sport, the S has no auto emergency braking, lane keep assist, or driver attention alert.
It makes do with the more basic array of brake, stability and traction controls, with the addition of a great reversing camera, three top-tether and two ISOFIX child seat mounting points, and six airbags.
The Rio carries a valid five-star ANCAP safety rating, to an earlier 2017 standard before its missing modern active safety items were mandated.
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 Rio again gets the edge on its budget competition with a lengthy seven-year, unlimited kilometre warranty. In this space it only butts heads with the MG3, which offers a matching promise.
Roadside assist is included for up to eight years if you continue to service with Kia, and there's also a capped price service program for the duration of the warranty, covering up to 105,000km.
The Rio needs to be serviced once every 12 months or 15,000km, and prices range from $269 and $608 per visit, for an annual average of $409.40.
Not the cheapest servicing schedule we’ve seen, particularly when compared with the likes of Toyota.