Sector: Crossover Price: £26,195–£30,795 Fuel: 55.4–57.6mpg CO2: 115–118g/km

Growing exponentially and beloved of company car drivers, mid-size crossovers are synonymous with diesel engines, particularly in fleet. It’s a crowded sector and tough to crack, even following segment norms, which might make a plug-free hybrid sound like an odd fit. But the RAV4 Hybrid is a game changer – perhaps not in volume terms, but it is important.

Running costs have made diesel a no-brainer in cars this size, and that won’t change overnight. However, air quality is beginning to resonate and mainly urban company car drivers needing crossover flexibility are the perfect target audience for this car. The Prius once led by example, and the RAV4 might be about to do the same.

Mechanically similar to the Lexus NX 300h, the RAV4 uses a 2.5-litre petrol engine, electric motor and continuously variable transmission to drive the front wheels, while a second motor can be added at the rear to offer part-time four-wheel drive. It’s a large engine but two and four-wheel drive versions come in under 120g/km, on par with similarly-sized diesels, and the extended 3% BiK levy puts Toyota in an interesting place.

Fuel economy is more complicated. Combined cycle figures show the diesel is most efficient, but that’s weighted towards extra-urban use where hybrids have to lean on their petrol engines. With the motor assisting and the ability to switch in and out of electric mode, the hybrids are both thriftier around town. Each will suit a different type of driver, so choose carefully.

Economy aside, urban and flowing country roads are where this feels most at home. It’s quick off the mark, though not as eager as 194bhp might suggest, and less prone to droning yawns of acceleration than Toyota hybrids of old. On a fairly flat test route, both versions returned almost 50mpg without much effort – mid-40s shouldn’t be difficult in the UK.

It suits the RAV4, too. Now stiffer and better insulated, the lack of clatter makes this feel quite luxurious. Ride quality is impressive, even on 18-inch wheels, and gear-free acceleration is very smooth. The compromise is cargo space, the Hybrid losing its flat load area and some under-floor space because of the battery under the rear seats.  Cabin aesthetics aren’t up to the exterior design, either.

Toyota reckons half of UK buyers will pick the hybrid, though that’s partly due to the four-wheel drive diesel being discontinued. There’s a two-wheel drive trim level aimed at company car drivers, with the usual motorway essentials, but four-wheel drive is only offered on top-spec Icon and Excel models. It makes extra traction an expensive option.

But its biggest threat is plug-in hybrids, the RAV4 missing out on tax breaks which have made the Outlander PHEV so popular, and with no option to plug in for extra efficiency – though it’s questionable how often drivers do so.

Toyota has shown, by sticking with hybrids, that it can take technology from niche to mainstream, and it has a USP here. Perfect for urban families, it’s a formula others are likely to follow.

what we think

Relaxed cruising for families not needing to rush, deployed correctly the RAV4 Hybrid makes a lot of sense. But the limited range could restrict driver choice.