After it made the Prius name as synonymous with hybrids as Kleenex is to tissues, Toyota has been slow to expand its signature technology to other Toyota-brand models in the U.S. market. The Highlander hybrid was introduced in 2005 and a hybrid version of the bestselling Camry debuted in 2006, but in the past decade the only other Toyota to get the hybrid treatment was the Avalon in 2012. (The Prius itself has also spawned V and C variants.) But now comes this hybrid RAV4, introduced in conjunction with a mid-cycle refresh for the 2016 model year. After testing this new compact crossover, we can only wonder why Toyota waited so long to bring it to market.

Conservative Toyota certainly had little impetus to rush into this when few competitors in the booming compact-crossover segment offer hybrids. Only two have existed, really: Ford sold a hybrid Escape (and Mercury Mariner clone) through 2012, while Subaru introduced the XV Crosstrek hybrid in 2014. Yet from a consumer’s standpoint, the new RAV4 makes plenty of sense, offering an EPA fuel-economy rating of 33 mpg combined, or 8 mpg better than the nonhybrid.

View Photos MICHAEL SIMARI

Efficiency that Pays in Dollars

In our testing, the margin over the standard RAV4 was even wider than the EPA figures suggest. We recorded 31 mpg from the RAV4 hybrid, or 12 mpg better than we got in the last nonhybrid, all-wheel-drive RAV4 we tested. That’s huge, because it means that even with relatively low gas prices (the national average for regular unleaded was $2.20 during our evaluation), a RAV4 hybrid buyer can reasonably expect to recoup the $700 premium for the RAV4 hybrid in fuel savings in just over a year, assuming 15,000 miles driven annually.

However, Toyota offers the RAV4 hybrid only in mid-grade XLE and top-of-the-line Limited trims, meaning the least you can spend to park one in your driveway is $29,270. Load up a $34,510 Limited with the $1435 Advanced Technology package—which includes a 7.0-inch touchscreen with navigation and Toyota’s Entune multimedia system, plus an around-view camera system—and enough accessories and you can hit the $38,000 price of our test vehicle. You won’t get Apple CarPlay or Google’s Android Auto at any cost, however, as Toyota does not support either of the big two smartphone-integration systems, instead preferring to offer its own connectivity apps.

The biggest differences between the hybrid trim levels are wheel size, cloth upholstery in the XLE versus imitation leather in the Limited, and the optional sensor-based safety technology (blind-spot monitoring, cross-traffic alert, automatic high-beam headlights, pre-collision braking, lane-keeping assistance, and adaptive cruise control) that’s included in the Limited.

Not the Slowest RAV4

In every RAV4 hybrid, a 2.5-liter four-cylinder gasoline engine rated at 150 horsepower works in conjunction with three electric motors to send power to all four wheels. The layout of this complicated powertrain is the same as in the Highlander hybrid, with two motors integrated into the front transaxle and one located in back to drive the rear wheels. Because the compact RAV4 is smaller than the three-row Highlander, its front traction motor (the one that powers the wheels while the other one functions as a starter/generator) is rated at 141 horsepower rather than the 167 in the Highlander; however, its 67-hp rear motor is identical. Total system power is 194 horsepower, which is less than the sum of the individual outputs, because peak output for the gas and electric power sources happen at different rotational speeds.

View Photos MICHAEL SIMARI

While that’s 18 horses higher than the nonhybrid’s power rating, this advantage is somewhat offset by the hybrid model’s extra weight. At 4003 pounds, the hybrid totes an extra 325 pounds of motors and batteries, which is why we saw scant improvement in our zero-to-60-mph test. The RAV4 hybrid clocked 8.3 seconds, compared with the 8.4-second run we made in the standard all-wheel-drive RAV4. The hybrid’s additional power is better felt at higher speeds, where the electric motor provides a nice surge of power for passing. Our test driver noted that battery power was depleted after three or four full-throttle acceleration runs, but that’s not a likely scenario in regular use.

Wavelike power delivery can make the RAV4 hybrid feel unsettled at times, especially under full-throttle acceleration. The hybrid doesn’t have a driveshaft linking its front and rear axles, so it depends on electronics to balance the power distribution. It doesn’t feel as smooth and seamless as the all-wheel-drive system in the standard model, which does have a driveshaft to the rear axle. With its soft suspension and substantial weight, the hybrid exhibits lots of body motion both fore and aft, and it leans quite a bit during cornering. On the Limited’s 18-inch wheels, we found that the hybrid also rides rather heavily for a smallish crossover, again because of its two-ton curb weight. And, like many hybrids that blend regenerative braking with the friction brake system, the brake pedal feels mushy and, more annoyingly, is inconsistent in delivering deceleration proportional to driver effort applied. Actual braking power, with stops from 70 mph requiring 181 feet, is typical of two-ton crossovers; we noted slight fade after repeated tests. While some nonhybrid crossovers this size can be mildly entertaining when driven hard, the RAV4’s modest 0.76 g of grip and relentless understeer will discourage such behavior.

Minor Compromises

But given the payout in mileage, those seem like small compromises for buyers who don’t care a whit about sportiness or the finer elements of refinement in the driving experience. Partisans of practicality might be more wary of how much the hybrid’s nickel-metal-hydride battery pack intrudes into the RAV4 hybrid’s cargo compartment. The hybrid model has 2.8 fewer cubic feet behind its rear seats than the regular model, and when the seats are folded down in the hybrid they don’t go flat. But the load floor in the RAV4 hybrid remains conveniently low, and the upward-sloping cargo hold still is capable of swallowing a 29-inch-wheel mountain bike without removing the front wheel. The hybrid gets a small bump in maximum towing capacity, although its 1750-pound limit is still pretty low.

The Highlander hybrid doesn’t deviate from the standard model when it comes to styling, adopting the same updates that other RAV4s get for 2016. A more aggressive front fascia with squintier headlights and more angular contours mark the RAV4 as a member of the Toyota clan—and perhaps the best-looking one. As Toyota continues to build its reputation as the hybrid purveyor of choice, this newest entry makes an attractive pick on many levels.

Specifications VEHICLE TYPE: front-engine, 4-wheel-drive, 5-passenger, 4-door hatchback

PRICE AS TESTED: $38,000 (base price: $29,270)

ENGINE TYPE: DOHC 16-valve Atkinson-cycle 2.5-liter inline-4, 150 hp, 152 lb-ft; two permanent-magnet AC synchronous electric motors, 141 hp (front), 67 hp (rear); combined power rating, 194 hp; 1.6-kWh nickel-metal-hydride battery pack

TRANSMISSION: continuously variable automatic with manual shifting mode

DIMENSIONS:

Wheelbase: 104.7 in

Length: 181.1 in

Width: 72.6 in Height: 67.1 in

Passenger volume: 102 cu ft

Cargo volume: 36 cu ft

Curb weight: 4003 lb

C/D TEST RESULTS:

Zero to 60 mph: 8.3 sec

Zero to 100 mph: 23.7 sec

Zero to 110 mph: 31.9 sec

Rolling start, 5-60 mph: 8.3 sec

Top gear, 30-50 mph: 4.1 sec

Top gear, 50-70 mph: 5.3 sec

Standing ¼-mile: 16.4 sec @ 86 mph

Top speed (governor limited): 114 mph

Braking, 70-0 mph: 181 ft

Roadholding, 300-ft-dia skidpad: 0.76 g

FUEL ECONOMY:

EPA city/highway driving: 34/31 mpg

C/D observed: 31 mpg

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