Is RAV4 the next Toyota to go all hybrid?

TOYOTA Australia has made the call to axe affordable petrol models from two of its most cost-conscious car lines – the Corolla and Yaris hatchbacks – and the hot-selling RAV4 could be next. 

Known for its extensive application of petrol-electric hybrid power, the Japanese brand will now only offer the more expensive powertrain choices for Yaris and Corolla hatchbacks in Australia, with those models joining the Yaris Cross SUV and new-generation versions of the C-HR crossover and Camry medium sedan in being hybrid-only here. 

There is also a chance that other popular vehicles in the local Toyota range will shift to a hybrid-only line-up, with the RAV4 and Corolla Cross among the most likely next steps for the brand. 

Both of those model lines have limited petrol choices for customers, with hybrid models making up the majority of variants, and accounting for the vast majority of orders and sales – albeit with both still experiencing some delays in terms of supply.  

Speaking with GoAuto at the launch of the new hybrid-only C-HR, Toyota Australia vice president of sales and marketing Sean Hanley said the brand will still offer petrol models where it makes sense to do so, and where demand warrants such powertrains to continue alongside hybrids. 

“The only thing driving petrol retention at the moment would be the demand patterns of the car. If people still want to buy them, we still try to supply them,” said Mr Hanley. 

However, contrary to Mr Hanley’s statement, Toyota Australia confirmed that in 2023, sales of 1935 Yaris hatches included just 547 (28.2 per cent) hybrid versions. 

Mr Hanley clarified that existing sales were just part of the considerations for planning ahead. 

“When we make our assumptions, we look at orders and sales, but given that we've been largely restricted on hybrid variants, we’ve got to look at our natural demand through order intake. That's what we look at, and that's quite a different scenario to what you might see as sales,” he said. 

The dismissal of the petrol Yaris, which was Toyota Australia’s most affordable car with a starting price of $24,800 before on-road costs, means a Yaris buyer will need to spend $30,190 + ORCs to secure the company’s smallest and most-affordable model. 

Likewise, the Corolla hatchback range (from $29,610 + ORCs for petrol) will now start at a hybrid-only $32,110 + ORC.  

Petrol Corolla sedans continue, becoming the most-affordable new Toyota in Australia from $29,270 + ORC. 

“What happens though, it gets to a point in your portfolio of any product review, where once you start to get above 90 per cent all hybrid, it doesn't make a lot of sense to keep bringing them (petrol variants) in,” Mr Hanley said.  

“So it's just the balance – while customers want petrols in numbers, we will deliver. But when that diminishes, as we're starting to see with hybrid, so that trend is obvious, we will move more and more to hybrid only.” 

The move has raised questions that Toyota is abandoning some customers, with higher costs pushing new-car buyers towards other marques. 

However, Mr Hanley said that he “has an option” for those who want a Toyota, but might not be able to afford the more costly brand-new models – Toyota Certified used cars. 

Mr Hanley posited that anyone in the market for a more affordable car from Toyota can buy a used vehicle instead of a new one.  

“We give peace of mind to those people who buy our certified used cars. So that's where we see those customers will have an offering for Toyota. Good quality warranted Toyota used vehicles across that smaller SUV and passenger car line-up.” 

As for whether the brand had any potential plans to re-enter the ‘cheaper car’ segment, Mr Hanley was circumspect. 

“Never ever is permanent. And nothing is permanent in this world. So you never discount it,” he said of offering a new sub-$30K, or even sub-$25K, car. 

“But right now, if you say to me, do you have that car coming? The answer's no, we don't.”