
Toyota is about to be richly rewarded for what seems, in retrospect, to be a corporate no-brainer: combining its expertise in hybrid drivetrains with buyers’ insatiable appetite for small crossover SUVs.
The ??? 2016 Toyota RAV4 Limited AWD hybrid fills the gap Ford created when it bewilderingly stopped building the popular hybrid version of its popular Escape compact SUV a few years ago.
It combines the features people love most about SUVs — all-wheel drive and a high seating position — with unrivaled fuel economy.
At 194 horsepower, the hybrid is the most powerful version of the RAV4, one of America’s favorite small SUVs. It has an innovative hybrid system that adds an electrically powered rear axle to what is otherwise essentially a front-wheel-drive RAV4.
RAV4 hybrid prices start at $28,370. All RAV4 hybrids come with a 2.5-liter four-cylinder engine and a pair of electric motors. All-wheel-drive and a continuously variable automatic transmission are standard.
I tested a very-well-equipped, top-of-the-line RAV4 hybrid Limited with navigation, Bluetooth phone and music compatibility, adaptive cruise control, blind-spot alert, JBL audio and more. It stickered at $37,100. All prices exclude destination charges.
At that price, a loaded RAV4 hybrid is among the most expensive — and best-equipped — compact crossovers from a non-luxury brand.
The Environmental Protection Agency rates the RAV4 hybrid at 34 m.p.g. in the city, 31 on the highway and 33 in combined driving.
That’s so much higher than any other compact crossover that it’s hardly worth mentioning their ratings, but I’m feeling mean: They all trail the RAV4 by 6-10 m.p.g. in combined driving. The C-Max hybrid minivan Ford hoped would replace the Escape hybrid rates higher, but it lacks all-wheel-drive (AWD) and the appeal that’s made compact SUVs as popular as lilac blooms in spring.
According to EPA estimates, it would take about nine years for a RAV4 Limited hybrid’s fuel savings to repay its price premium versus the most fuel-efficient, gas-burning competitor, the AWD Hyundai Tucson Limited. The payback falls to less than a year versus the Honda CR-V AWD Touring.
Hybrid and electric vehicle sales are struggling during the oil glut of 2016. When oil prices resume their usual upward trend, the economics will shift in the RAV4 hybrid’s favor.
The RAV4’s electrically driven rear axle is a harbinger of future drivetrains. Unlike earlier AWD hybrids, the rear axle has no physical connection to the engine. The rear wheels are driven solely by electricity when the RAV4 needs power at all four wheels.
It’s the same principle the exotic BMW i8 plug-in hybrid uses. It’ll become more common as automakers turn to compact and efficient electrically powered axles to deliver AWD, performance and high fuel efficiency.
The RAV4 hybrid has plenty of power for comfortable acceleration and highway cruising, but it competes with other SUVs’ gas-sipping models, not pocket rockets like the 245-hp Ford Escape 2.0L Ecoboost. The ride is comfortable. It cushions bumps, but won’t encourage you to embrace high-speed curves. The hybrid can tow 1,750 pounds, 250 more than a gasoline RAV4.
The 2.5-liter gasoline engine generates a surprising amount of noise and vibration. Road noise is quite noticeable at highway speeds.
The cab offers plenty of passenger space. Despite using relatively bulky nickel-metal hydride batteries, the RAV4 hybrid has more cargo space than all its competitors but the CR-V.
The voice-recognition system is fast and accurate, but the touch screen is small and hard to use in a moving vehicle. The arm rest on the center console in the front seat gave a loud “crack” whenever the driver leaned on it.
The RAV4 hybrid’s fuel economy, AWD and practical SUV layout will win it plenty of happy owners, but goofs like a noisy engine and creaky arm rest are surprising in a Toyota.

Behind the Wheel
2016 Toyota RAV4 hybrid Limited AWD
All-wheel-drive five-passenger compact crossover SUV
Price as tested: $37,100 (excluding destination charge)
Rating: ??? (Out of four stars)
Reasons to buy: Fuel economy, all-wheel-drive, practicality
Shortcomings: Price, engine noise and vibration, small touch screen
Competitive EPA fuel-economy ratings
(All-wheel-drive automatic transmission models)
Toyota RAV4 hybrid Limited AWD: 34 m.p.g. city/31 highway/33 combined. Regular gasoline
Chevrolet Equinox AWD LTZ 2.4L: 20/29/23. Regular
2017 Ford Escape Titanium 4WD 1.5L Ecoboost: 22/28/24. Regular
Honda CR-V AWD Touring: 25/31/27. Regular
Hyundai Tucson Limited AWD: 24/28/26. Regular
2017 Kia Sportage EX AWD: 21/25/23. Regular
Mazda CX-5 AWD Grand Touring: 24/30/26. Regular
Nissan Rogue AWD SL: 25/32/28. Regular
Volkswagen Jetta GLI SEL: 20/26/23. Premium
Source: www.fueleconomy.gov
Comparative base prices (excluding destination charges)
(All-wheel-drive automatic transmission models)
Toyota RAV4 hybrid Limited AWD: $33,610
Chevrolet Equinox AWD LTZ 2.4L: $31,690
2017 Ford Escape Titanium 4WD 1.5L Ecoboost: $30,850
Honda CR-V AWD Touring: $33,395
Hyundai Tucson Limited AWD: $31,300
2017 Kia Sportage EX AWD: $27,000
Mazda CX-5 AWD Grand Touring: $29,870
Nissan Rogue AWD SL: $30,040
Volkswagen Jetta GLI SEL: $36,420
Source: Autotrader
Specifications as tested
Powerplant: 2.5L 16-valve 4-cylinder engine and two electric motors
Output: 194 hp
Transmission: Continuously variable automatic
Wheelbase: 104.7 inches
Length: 181.1 inches
Width: 72.6 inches
Height: 67.1 inches
Curb Weight: 3,950 lbs.
Where assembled: Obu, Aichi, Japan
Key features on vehicle tested
Standard equipment: Antilock brakes; stability control; curtain air bags; electronic brake force distribution; brake assist; pedestrian detection; steering assist; automatic high beams; blind-spot and cross-traffic alerts; front and rear parking sonar; 18-inch alloy wheels; LED headlights, taillights and daytime running lights; power tailgate; power sunroof; privacy glass; dual zone climate control; navigation; 7-inch touch screen; Sirius satellite radio; power adjustable driver seat; memory for driver settings; power locks, windows and mirrors; heated front seats, and push-button start
Options: Bird’s-eye view camera; JBL audio; USB input; auxiliary input; voice recognition; Bluetooth phone and music compatible; tonneau cover; roof rack cross bars; cargo net; paint protection film; side molding; door sill protector; wheel locks; mud guard; door edge guard, and carpet floor mats.