Australia’s best-selling SUV, the Toyota RAV4, experienced a significant sales decline in February 2026, falling outside the top 20 best-selling vehicles as competitors capitalize on limited stock. This drop comes as Toyota prepares to release the sixth-generation RAV4 next month, marking the end of the line for the current model. Sales plummeted to 723 units in February, down from 1,757 in January and 4,405 in February 2025 – a year-over-year decrease of 73.8%.
Strategic Runout and Rising Prices
Despite the drop, Toyota Australia remains unconcerned, framing the decline as part of a planned transition. The incoming RAV4 will carry price increases of up to $6,000, with even the base GX variant seeing a $4,000 price bump. According to John Pappas, Toyota Australia’s VP of sales and marketing, “February sales aligned with our plans… customer demand remains strong.”
This strategy isn’t unusual: automakers often see sales slow during model changeovers as buyers wait for the newer version. The RAV4’s outgoing generation was a major success, reaching 51,947 sales in 2025, making it Toyota’s best-selling model and Australia’s most popular SUV. Toyota maintained its position as Australia’s top auto brand for the 23rd consecutive year with 239,863 sales.
Mazda CX-5 Gains Ground
While the RAV4 slows down, its long-time rival, the Mazda CX-5, is gaining momentum. The CX-5, also in runout mode, secured fifth place overall with 2,099 sales, becoming the top-selling mid-size SUV. Mazda CX-5 sales increased 15.4% year-over-year. Mazda anticipates continued demand but acknowledges potential stock shortages with a third-generation CX-5 due later in 2026.
This pattern is common in the industry: Toyota previously saw delays with the new Prado model, allowing the Ford Everest to outsell it in 2024. Tesla also experienced sales dips during model changeovers for its Model 3 and Model Y globally.
Toyota Still Dominates
Despite the RAV4’s short-term decline, Toyota remains the dominant force in the Australian market. The company led February sales with 13,606 units, almost doubling Mazda (7,042) and Ford (6,907). The transition period for the RAV4 is a temporary setback rather than a sign of weakness in Toyota’s overall performance.
The shift in sales reflects a natural market cycle, where anticipation for the new model outweighs immediate purchases of the outgoing one. The RAV4’s long-term success is unlikely to be derailed by this temporary dip, especially with Toyota retaining its leadership position in the Australian auto market.
