Toyota considers Nissan Juke rival
The company's smallest offering in this class, the RAV4, has become bigger and more expensive with each generation, and Toyota feels this has left room for a more affordable model.
Brands such as Nissan are already exploiting this niche, while Kia will show a concept car version of its own Juke rival at this year's Geneva motor show.
When asked about the chances of a smaller Toyota SUV, a company source said: 'There is clearly an opportunity here. It has not escaped our notice.'
One model that we're unlikely to see anytime soon is a RAV4 hybrid. Many RAV4 buyers use their cars for towing, so Toyota believes diesel power is a better fit.
By Steve Huntingford