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.
There’s something immensely appealing about a car that can play two roles.
An off-roader for the weekend and a school pick-up chariot Monday to Friday? How about a race car/grocery-getter combo?
The latter is what the Toyota GR Corolla wants to be, a slightly bigger and more day-to-day alternative to the first GR hot hatch, the Yaris.
Both of these cars have now been updated and are arriving in Australia now, and Toyota hopes the Corolla becomes an even better car to rival the likes of the Volkswagen Golf R.
But can it do it?
We tested Toyota’s hotted-up Corolla on road and track to see if it’s up to the task.
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 GR Corolla had a lot to live up to before, given the likes of the GR Yaris and GR86 fit their briefs so well.
Now, with a little more daily useability and a little more performance, the GR Corolla is even better at both sides of its Jekyl and Hyde personality.
Note: CarsGuide attended this event as a guest of the manufacturer, with accommodation and meals provided.
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.
The Corolla already looks more sporting than most hatchbacks even before the GR treatment, but a few tweaks up front, some wider wheel arches and a third exhaust exit at the back have this thing looking almost ready for a rallycross.
The only downside to that is the changes are relatively minor from some angles. If you weren’t aware of the GR version, you'd need to see the GR Corolla from the front or spot that exhaust to know something was up.
The update has, however, ushered in a change at the front bumper, where the air intakes have been adjusted for improved airflow “to the radiator, intercooler, brake ducts, sub radiator and automatic transmission fluid cooler”
In part, this was necessary to help cool the new automatic gearbox, though it does generally help with overall cooling.
While the GR Corolla looks the part, there’s more function to it. The air that passes in through the side intakes at the front is vented to a duct in the wheel arch that also cools the brakes.
It’s the same as the GR Yaris sibling in terms of the philosophy behind aerodynamics and cooling in many ways, though much of the Yaris is bespoke, where on the Corolla, parts have been attached to the standard body.
Like the outside, the inside of the GR Corolla is mostly the same bones as its non-hot-hatch relatives, but the aforementioned sports seats, leather trim and aluminium pedals are all fairly strong hints this isn’t quite ‘hire car spec’.
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.
As far as hatchbacks to build a daily-useable hot hatch upon go, the Corolla is a relatively solid starting point in terms of ergonomics.
Physical buttons and controls for things like climate are within reach for most functions of the car, though the multimedia touchscreen itself isn’t the most up-to-date.
The seats are comfortable but hold you firmly in place, and the steering wheel, pedals, and shifter are all in the correct positions for engaging driving - particularly important in the manual version.
The storage space is where the GR Corolla disappoints a little. There’s door card space for a water bottle, cupholders, the wireless device charger, but not really anywhere for larger items.
Behind the front row, adults will find themselves a little cramped in terms of kneeroom, while dark interior materials make the second row feel poorly lit.
Further back in the Corolla is the 213-litre boot, which is pretty small even for a hatchback, although Toyota lists a maximum 503 litres with the seats folded down.
Under the boot floor is a tyre repair kit, rather than a spare tyre. Keep that in mind if undertaking a road trip.
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.
The 2025 Toyota GR Corolla comes in just one grade now, the highly-speced GTS, which starts from $67,990 plus on-road costs for the six-speed manual, but it's now available with an eight-speed automatic for $70,490.
Sounds like a lot for a Corolla, and it’s a little more than the $64,190 asking price the GTS manual wore before, but compare it to the highly-regarded Honda Civic Type R ($74,100) or the do-it-all VW Golf R ($70,590) and it lines up.
While the GTS has plenty of features for the price, they’re not all focused on the comfort of the interior.
For example, the synthetic leather and suede sports seats are manually adjustable, even though they are heated.
The 8.0-inch multimedia touchscreen is similar to that in the standard Corolla, too, plus dual-zone climate, USB-C ports, the wireless phone charger and JBL Audio system are all expected features of a hatchback at more than $60,000.
The GR Corolla does however gain heating for the leather-wrapped sports steering wheel, plus leather trim for the parking brake and shifter too. It also scores aluminium pedals.
There’s a lot more under the skin when it comes to the GR, some of which is visible via controls in the cabin, but we’ll come to that.
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 GR Corolla’s 1.6-litre three-cylinder turbocharged petrol engine is now a little torquier than before, with outputs now 221kW (at 6500rpm) and 400Nm (between 3250 and 4600rpm) thanks to an extra 30Nm.
The G16E-GTS engine can now drive the Corolla’s four wheels through a choice of gearboxes, either the existing six-speed manual or an eight-speed torque converter automatic.
As well as the usual drive modes, Eco, Normal and Sport, the Corolla’s GR-Four all-wheel-drive system can split the torque to the front or rear wheels via its limited-slip diffs.
Normal, Track and Gravel modes can distribute drive either 60:40 front/rear in Normal, 53:47 in Gravel, or variably depending on conditions and need for acceleration in Track.
Toyota hasn't provided a 0-100km/h time for the 2025 GR Corolla in either variant, but the auto should knock it over in under five seconds, with the manual taking a little longer.
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.
Toyota’s claimed fuel consumption for the GR Corolla with a manual gearbox hasn't changed from the previous 8.4L/100km, which isn’t bad for a sports car.
With the auto, Toyota says it burns through the fuel faster at a rate of 9.5L/100km.
In either case, the Corolla’s 50-litre fuel tank needs to be filled with premium 98 RON petrol, and theoretically could provide more than 500km of driving if conditions and your driving style are both perfect for efficiency.
Chances are, however, you’ll feel the need to put your right foot down a little harder than they did during WLTP testing, if for no other reason than to hear the turbo flutter when you lift off.
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.
The GR Corolla isn’t as engaging to drive as the GR Yaris, it’s not as honed as one particular rival, the Honda Civic Type R, and it’s not as ‘nice’ as the Golf R.
But the GR Corolla is still an excellent car to drive, and it’s better for its update. In fact, the two major gripes I had with the pre-facelift car have been addressed.
I was in a unique position to be able to compare the old and new versions of the GR Corolla as I drove a MY 2024 version a week prior to the media launch for the 2025 model.
The first and probably biggest issue I had was that the Corolla’s suspension seemed like it must have been rather stiff and the body bracing quite rigid for a car riding on 19-inch wheels to let that much road noise and that many harsh bumps into the cabin.
Though it wasn’t mentioned before the on-road drive loop, the car felt more compliant without sacrificing ability and seemed much more suited to daily duties.
Toyota’s product team confirmed there had been tweaks made to the rear suspension geometry and that I wasn’t just imagining it.
The second issue is more for the sake of passengers who may be less agreeable to the three-pot thrum resonating along the exhaust underfloor.
Toyota has solved this by putting a slight mute on the pipes in the Eco drive mode, so the car is now just ‘a bit’ lairy rather than full boy racer.
Generally, it’s hard not to compare the GR Corolla to the smaller (but original) GR hatch, the Yaris. Especially having driven them back-to-back at the media launch.
Without leaning too much on that, I will say that while the Yaris feels like a rally car that's been modified to be road-legal, the Corolla feels more like a road car that was tweaked for rallying.
The Corolla stops just short of being too ‘raw’ for everyday use in most aspects, but it’s still very capable when it comes to driving fast.
Like its suspension, the steering feel is dialled in for feedback without being too rough, and allows you to corner accurately without feeling like you need to second-guess or adjust inputs.
When it comes to handling, it doesn’t feel like the Corolla is entirely leaning on the Yokohama Advan tyres for grip, as it feels tied-down and doesn’t pitch and roll through corners.
The duality of the GR Corolla is helped by its drive mode and differential settings and even on track can help you lean into your own driving style.
While the rear-biased 30:70 setting previously made for a slightly tail-happy hot hatch, the new variable Track setting does a fabulous job of keeping the drive where it needs to be, though it turns out it’s also rather handy for sliding the Corolla around a wet skid pan.
Another neat trick is the GR’s handbrake, same as the Yaris, which can disconnect the rear diff when engaged so you don’t need to dip the clutch pedal in the manual version when indulging in handbrake turns.
It will set you back to 2WD mode when the drivetrain overheats, however, or at least when its sensors suspect the drivetrain has overheated - something that only happened after a lot of handbrake turning and spinning wheels as the hatchback slid sideways.
The Corolla’s brakes are ventilated 356mm front and 297mm rear discs, and doesn't lose stopping power even after plenty of tight, twisting road driving where the brakes and the sticky Yokohama Advan tyres copped a workout.
The new auto transmission is also a delight. It's calm during normal driving but snappy with shifts in Sport mode and set to manual gear selection. It won’t really cooperate on a rapid drive of its own accord.
The only criticism of the auto gearbox (aside from being less engaging than the manual, but that’s your own choice) is that the shift paddles behind the wheel feel a little plasticky, but I’m nitpicking at this point.
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 Corolla’s not lacking in safety kit, with a healthy list of passive and active features as well as a series of seven airbags and three ISOFIX points along the rear seats.
ANCAP tested the non-GR Corolla in 2018 and awarded it five stars, though that score is now outdated. It’s not clear if the car’s updated tech would manage five stars again, though the car is clearly structurally sound.
Aside from the usual expectations like auto emergency braking (AEB), a blind spot monitor, parking sensors front and rear plus a decent reversing camera, the GR Corolla also has rear cross-traffic alert and Toyota’s ‘Safety Sense’ suite of active kit.
That includes a pre-collision safety system with pedestrian detection and cyclist detection in daylight, active cruise, intersection assist, emergency steering assist, lane departure and lane-trace assist, road sign detection for speed limits and auto high beam.
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.
Toyota offers a five-year/unlimited kilometre warranty plus an extra two-year warranty on the GR Corolla’s engine and driveline.
There’s also a capped price on the first three years of servicing for the GR Corolla at $310 per service.
The downside to the servicing arrangement is that intervals are six months or 10,000km, whichever comes first. That's more regular than a usual schedule and it means potentially pricier servicing for the seventh visit onwards.