Photo of 2016 RAV4 Hybrid courtesy of Toyota.

Photo of 2016 RAV4 Hybrid courtesy of Toyota.

Toyota's 2016 RAV4 Hybrid will cost $700 more than the comparable gasoline model and deliver significantly better fuel economy in city driving, according to a Toyota announcement.

Toyota has released full pricing and specifications for the face-lifted model that adds a gasoline-electric hybrid as the automaker's eighth hybrid that adds a green model to the nameplate following the discontinuation of the RAV4 EV with the 2014-MY.

Toyota will offer the RAV4 Hybrid in four grades, including XLE and Limited with standard all-wheel drive. Toyota will offer the gasoline RAV4 in four grades, adding the LE and new SE.

The RAV4 Hybrid is powered by a 2.5L Atkinson Cycle four-cylinder paired with an electric motor driven by a nickel-metal hydride battery pack. The powertrain produces 194 hp and 206 lb.-ft. of torque. Power is delivered with a standard 6-speed automatic transmission or optional continuously variable transmission (CVT).

The RAV4 Hybrid gets an EPA-rated 34 mpg in the city, 31 mpg on the highway, and 33 in combined driving. The comparable all-wheel-drive gasoline RAV4 gets 24 mpg in the city, 31 mpg on the highway, and 26 mpg combined.

The RAV4 Hybrid retails for $28,370 for the XLE and $33,610 for the Limited, excluding delivery fees. The gasoline-powered front-wheel-drive base model RAV4 LE retails for $24,350. Other trims retail for $26,270 for the XLE, $29,265 for the SE, and $31,510 for the Limited. Adding all-wheel drive costs $1,400. The RAV4's CVT is available for an additional $700 only with all-wheel drive.

Toyota is offering a fleet incentive of $600 for the RAV4 and RAV4 Hybrid. Commercial fleets added 1,903 RAV4 SUVs in 2013.

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