Toyota Motor Corp.'s RAV4 was an oddity when it went on sale in the mid-1990s: a tiny, low-priced alternative to hulking sport utility vehicles such as the carmaker's own 4Runner and Ford Motor Co.'s Explorer. But it was a hit.

Now it lags behind Honda Motor Co.'s CR-V and Ford's Escape, which arrived later. With U.S. demand for compact light trucks expanding, Toyota has put a higher priority on the RAV4 as part of a redesign for the 2013 model year, said Bill Fay, Toyota's group vice president for U.S. sales.

"It was a great concept and we've done well with it, but we never took it and ran with it as hard as we've run with" the Camry sedan, Fay said of the RAV4 in an interview in Scottsdale, Arizona. "It's a complete package this time."