Toyota RAV4 vs Lexus IS
What's the difference?

Toyota RAV4

$45,990 - $66,430

2026 price

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Lexus IS

$39,990 - $62,990

2021 price

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Summary

2026 Toyota RAV4

2021 Lexus IS

By Emily Agar

By Tom White

Safety Rating

Engine Type

Inline 4, 2.5L

Fuel Type

Unleaded Petrol/Electric

Premium Unleaded/Electric

Fuel Efficiency

4.8L/100km (combined)

4.9L/100km (combined)

Seating

Likes

Hybrid system is efficient
Charming technology
Easy ride and handling

Sleek and efficient hybrid drive
Graceful ride
Spec improvements

Dislikes

Heavy-use of plastics is a buzzkill
Missing some second-row features
Grade distinctions are too close

Slow
Busy interior design
Fiddly and over-complicated software

2026 Toyota RAV4 Summary

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.

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2021 Lexus IS Summary

One question frequently discussed in the skunkworks of the CarsGuide office is: What exactly does Lexus stand for?

When the brand debuted its original export-market IS sedan in 1999 the messaging was more or less clear: Toyota’s premium sub-brand was here to be a Japanese BMW.

The brand even employed Nobuaki Katayama – chief engineer on the iconic Corolla AE86 program – to again take the reins of its small rear-wheel drive sedan program.

As the years went on though, Lexus changed. Fundamentally geared toward the US market, the second-generation (wild IS F aside) became a bit more sedate and softer around the edges, while the third generation strayed even further from the sedan’s performance-inspired roots, leaning into a plush interior, hybrid drive, and even CVT transmissions.

This brings us to today’s Lexus IS. Essentially a heavy facelift of the third generation (which arrived back in 2013), the brand has “reimagined” its core sedan with a tweaked design and updated technology for 2021.

Is it enough to keep it relevant against its ever-present European rivals and the newly arrived threat from Hyundai’s Genesis G70? I took a signature IS300h hybrid for a week to find out.

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Deep dive comparison

2026 Toyota RAV4 2021 Lexus IS

Verdict

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.

Verdict

Smooth, cosy, quiet, the IS looks and feels better than ever, but without a doubt this hybrid version is a car best suited to cruising the dense metropolis of Chiba at midnight more than it is carving up a bunch of S-bends in the Australian countryside on the weekend.

While that might still limit its appeal for fans of German sports luxury sedans and place it further from the original IS’s ambitions, it does offer an intriguing efficiency and luxury focused alternative, without the compromises brought by rivals with more sporting intent. In a way then, the IS 300h perhaps inadvertently best embodies what Lexus is as a brand.

Toyota RAV4 vs Lexus IS What's the difference?

Summary

Deep dive comparison

Verdict

Verdict

Toyota RAV4 vs Lexus IS
What's the difference?