2026 Toyota RAV4 First Drive Review + Video

Deciding what exactly constitutes the economic engine of Canada is often up for debate these days.

Is it oil and gas? Forestry? Film and television? The financial sector? In truth, it’s a combination of all that and more that drives the national economy. But what drives this country in the most literal sense is the Toyota RAV4.

Not only has the automaker cranked out more than four million of them and counting since production started here in 2008, but with the RAV4 registering as the best-selling vehicle in this country that isn’t a pickup truck for seven years running, it’s what gets countless Canadians to work each and every day.

Considering all the economic uncertainty as of late, the 2026 Toyota RAV4 arrives as something of a beacon of prosperity. Built at two separate Ontario plants just a few hours’ drive from the American automotive hub of Detroit, this newly hybrid-only RAV4 is something to rally around in the face of relentless attacks as of late. Those aggressions may be mostly one-sided, but there’s plenty of room for elbows to be up inside this redesigned compact crossover.

Two Hybrids

First, a word of warning. When it comes to parking something patriotic in the driveway, know that not every 2026 RAV4 is created equal. As with before — and at least for the time being — the plug-in hybrid (PHEV) version is exclusively built in Japan; otherwise, every unit sold in Canada is made here, too. But unlike in previous years, there’s no longer a gas-only model. Instead, it’s either a conventional hybrid or a PHEV, the latter of which will hit the market later than the locally sourced version. (Expect it to arrive towards the end of the first quarter of 2026.)

The Canadian-made version of the redesigned RAV4 moves to the fifth generation of Toyota’s highly touted hybrid system, making it the third model in the lineup to do so. It’s largely the same as before, with a 2.5L four-cylinder gas engine working alongside a pair of electric motors under the hood — one to drive the wheels and the other to charge the battery. Since all-wheel drive is standard in Canada, there’s another electric motor in the back dedicated to driving those wheels that’s independent from the rest of the powertrain, although it’s fed by a shared 1.1-kWh battery.

Tweaks to the power control unit — that’s the computer that decides when and how to use the gas or electric sides of the system, or a combination of both — and other components have helped make the conventional hybrid setup smarter, stronger, and more efficient, which are the sort of adjectives that matter when it comes to a gas-electric powertrain like this one.

Output from the gas engine on its own is the same as it was in the outgoing version, with 184 hp to go with 163 lb-ft of torque. More importantly, there’s now a 100-kW drive motor working alongside it, which is responsible for the increase to 236 net hp this time (from 219 before). The system uses a familiar automatic continuously-variable transmission (CVT) to direct output to the front wheels, while the electrically-driven rear wheels chip in as required — say, when there’s limited traction in winter.

Highly Efficient

The battery under the back seat is the same as it was before in terms of composition and capacity, although somewhat significantly — particularly for the plants where the RAV4 is built — the lithium-ion pack is now assembled alongside the vehicle itself. The cells are shipped in from Toyota’s battery plant in North Carolina, but even the various fixtures and conveyors on the line come from suppliers in nearby cities like Kitchener and Ingersoll, Ont.

It’s a happy coincidence that the locally built battery contributes to a considerably more efficient crossover than before, with a combined consumption rating as low as 5.4 L/100 km compared to 6.0 for the outgoing version. In fact, that’s the amount of gas the RAV4 Woodland and its rugged all-terrain tires is estimated to burn through in everyday driving — nearly a half-litre less than its predecessor. That also makes this the most efficient conventional hybrid crossover out there.

Of course, with hybrids like this one, it’s a holistic approach that leads to efficiency improvements, and the rest of the components contribute to the cause as much as the battery pack. Toyota has also fitted the 2026 RAV4 with some novel features like drag-reducing wheel spats that automatically deploy at speeds of about 70 km/h to direct air around the front tires.

There’s also a new eco mode incorporated within the adaptive cruise control system that shows the optimal fuel-saving position behind a preceding vehicle. The efficiency boost is shown on the instrument display as one of five levels, with the highest achieved by drafting a large vehicle like a transport truck — and, of course, at a safe distance determined by the RAV4’s radar sensors. But even without those fancy features or any sort of hypermiling, the hybrid system sips fuel.

Familiar Feel

Yes, the 2026 Toyota RAV4 is a new generation — the sixth in the model’s history, for those keeping score — as is its hybrid powertrain, but the core components are mostly the same. Take the platform: it’s the same global architecture, just improved through the use of more high-strength steel and structural adhesive, as well as more laser welds. Alongside the similarly enhanced hybrid drive system, it contributes to a familiar feeling (and sounding) crossover.

That’s not a knock on the RAV4, whether old or new, but anyone who’s driven an existing model won’t find many surprises. The gas engine still tends to buzz incessantly with a heavy foot on the throttle, and the ride is well sorted if not especially rich in feel. But then other refinements include suspension bushings that help reduce road vibrations, and the effects are noticeable.

Less familiar is the RAV4’s new interface that runs on software developed in-house by Toyota. Dubbed “Arene,” it has over-the-air update capability and responds more quickly to commands. Those include remote inputs via a connected smartphone, which Toyota claims take about five seconds compared to 15 before. And, of course, there’s wireless connectivity via Android Auto and Apple CarPlay, plus the touchscreens are bigger than before at 10.5 or 12.9 inches.

The lone question mark — at least at the time of this writing — remains pricing, which is highly dependent on the external forces Canada is facing. With the gas-only version discontinued, there’s no doubt the cheapest RAV4 will be more expensive than before. What remains to be seen is just how much pricier it will be than the outgoing gas-electric model that started at $38,565 before tax but including freight ($1,930).

Final Thoughts

The consumer success of the 2026 Toyota RAV4 seems about as predetermined as it gets — not that the automaker could’ve delivered a dud and gotten away with it, but it would take something truly atrocious to break the RAV4’s streak as the country’s top-selling passenger vehicle that isn’t a pickup. Ignoring the other places it’s assembled, it also stands as something of a symbol of Canadian prosperity and pride at a time when those feel few and far between.

More than a moral victory, the new RAV4 is better than before even if it isn’t earth-shatteringly so. But then it’s been a long time since this compact crossover broke any new ground. Instead, it’s spent the intervening years getting firmly entrenched in it. While not quite as Canadian as maple syrup, this Toyota is about as close as it gets after 17 years of domestic manufacturing — and best of all, it isn’t going anywhere anytime soon.