Is Toyota planning a cheaper, more compact ute than the HiLux based on the new RAV4?

Toyota is moving closer to launching an affordable, compact ute, confirming long-held rumours of a vehicle to slot beneath its popular Tacoma. While timing remains fluid, senior executives at Toyota Motor North America say it’s no longer a matter of if the truck will arrive – but when.

“We’ve studied it a lot. We’re dedicated to it,” said Cooper Ericksen, Toyota’s head of planning and strategy, in an interview with MotorTrend. “Decisions have been made. The question is when we can slot it in.”

Toyota’s compact truck strategy has been in the works for years – well before Ford launched its wildly successful Maverick in 2021. The Japanese automaker’s legacy of small pickups, from the precursors to the Tacoma, provides a blueprint. However, today’s market conditions and engineering challenges are making the launch a juggling act.

The proposed ute will be a unibody truck based on Toyota’s TNGA platform, shared across most of its current line-up. That paves the way for hybrid and plug-in hybrid powertrains, aligning with Toyota’s strategy to offer a range of electrified vehicles.

Despite not being body-on-frame like the HiLux or Tacoma, Ericksen said the compact ute will remain a “true Toyota truck,” with the durability and capability expected of the brand – yet with improved fuel economy and reduced weight.

Toyota’s research suggests the U.S. market alone could support annual sales of 100,000 to 150,000 compact trucks, driven by demand for more affordable alternatives to full-size utes, which have become prohibitively expensive for many buyers. The base price of some mid-size off-roaders, such as the Tacoma TRD Pro, can exceed $60,000.

But despite the market appetite, don’t expect to see a prototype anytime soon. Toyota’s engineering resources are currently maxed out, with 24 new or updated models in the pipeline. The automaker is also advancing its hybrid and EV portfolios while developing fifth and sixth-generation hybrid systems. All of this limits the capacity to fast-track a new compact pickup project.

“There’s a lot of moving pieces,” Ericksen noted. “We’re trying to figure out how we can get it done.”

Speculation is mounting that Toyota’s compact ute could be based on the next-generation 2026 RAV4 architecture, making it an SUV-based truck in the vein of the Ford Maverick and Hyundai Santa Cruz. Both competitors have found success using shared SUV platforms to produce lower-cost, fuel-efficient trucks with everyday practicality.

Digital artist Theottle has taken a stab at what the RAV4 might look like as a ute (above).

“I think it will compete well against Chevrolet Montana, Fiat Toro, Ram Rampage and Renault Oroch,” the artist opined.

David Christ, general manager of Toyota’s U.S. division, stressed there is no firm timeline for the new ute. However, Toyota’s COO Mark Templin confirmed the company is actively exploring the idea.

With industry headwinds such as electrification, tariffs, and regulatory changes causing constant recalibrations, Toyota’s small ute remains on the horizon – but its path is becoming clearer.