Toyota unveils all-new RAV4, which will be built in Ontario and only come as a hybrid

Globe and Mail

21-05-2025

The Toyota RAV4 dethroned the Ford F-150 pickup as the best-selling passenger vehicle in the United States after a reign of 40 years. While that's not the case in Canada, the RAV4 still comes in second and manages to keep its head well above the rest of the field of compact SUVs, including the exceedingly popular Honda CR-V.
Now there's an all-new RAV4, which will be built in Ontario and is destined to build on the momentum of the previous generation. Its continued success will likely hinge on the fact that the RAV4 will be sold only as a hybrid.
The RAV4's success, especially in recent years, signifies a shift in consumer preferences toward smaller and more economical vehicles. High prices, fuel costs and inflated loan rates are driving people away from large SUVs and pickups over to more fuel-efficient compact and subcompact cars and crossovers.
Toyota's success with the RAV4 cannot be understated. Long wait times to secure a new one in Canada are the norm. The Toyota Canada website still states that inventory for the RAV4 and RAV4 hybrid is limited.
Since the first Corolla-based generation came out in 1995, the RAV4's car-like driving manners with increased utility proved a winning formula. Today, compact SUVs represent one of the most popular segments in the industry.
The new 2026 RAV4 doesn't mess with the last generation's formula but only improves on it. The chassis receives a stronger foundation with stiffer suspension mounts and frame joints that are said to decrease noise and vibrations.
There are three new grades of RAV4: Core, Sport and Rugged. Depending on what you pick, there's either a hybrid or plug-in hybrid drivetrain on offer. Each grade features distinctive styling and has separate trim levels, providing a lot of choice for the consumer but also making the new model structure confusing. So much so that Toyota included a table in their press release to illustrate which powertrain is available with which trim.
Allow me to simplify it as best I can. The Core and Rugged models are all regular hybrids. The Sport trims get the option of hybrid or plug-in hybrid drivetrains. Under the Sport trim umbrella, there's an all-new Gazoo Racing (GR) trim with specially tuned suspension under the consultation of Toyota's in-house racing division. The GR Sport RAV4 will be a plug-in hybrid only.
The plug-in hybrid system, now in its fourth generation, gets up to 320 horsepower, an 18 horsepower increase over the outgoing generation, while being more efficient and getting up to 80 kilometres of all-electric range. The company says that the gains have been made possible through highly efficient silicon-carbide semiconductors and a larger battery. The plug-in will also get DC fast charging capability (not on all trims), which means a 10 to 80 per cent charge in 30 minutes. Level 2 charging speeds have also been improved with a new onboard 11-kilowatt charger.
The new fifth-generation hybrid sees improvements in efficiency but also more power, now up to 236 horsepower, owing to an updated battery, power electronics and transaxle.
A new infotainment system is Toyota's first step toward software-defined vehicles, according to the company. There's an all-new digital instrument cluster and either a 10.5-inch or 12.9-inch centre touchscreen and an available head-up display. The new infotainment system is said to be easier to use with improved voice recognition and standard wireless Apple CarPlay and Android Auto.
Core models get a clean body-coloured grille, the GR gets a large and open functional grille and the Rugged or Woodland version will get a look that feels inspired by Toyota's bigger SUVs such as the Land Cruiser and 4Runner.
A large part of Toyota's recent success can be attributed to its influx of hybrid models across its lineup, with many of them, like the Camry and Sienna, being exclusively electrified. The new RAV4 is likely to bolster this upward sales trajectory by significantly increasing the number of hybrids on offer from the company.
The RAV4 is built in Cambridge and Woodstock, Ont. and both plants are undergoing retooling for production of the new RAV4, which will launch later this year. Eighty-five per cent of those RAV4s are exported to the United States. The company says that as of now, tariffs have not affected current production plans, which will remain in Canada.
Pricing and further details on the new RAV4 will be available closer to its launch.
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