What's the difference?
Sometimes a name change can make all the difference.
Google used to be called “Back Rub”. The Spice Girls started off as “Touch”. And – particularly in Germany – some premium sedans became known as “coupes”, as they struggled to stay popular against SUVs.
Case in point: what is essentially a 1 Series hatchback with a boot has been more glamorously badged the “2 Series Gran Coupe” since 2020.
Still following the sedan script with four doors, it’s BMW’s tilt at Mercedes’ booted A-Class hatch, the rakish CLA, unveiled early last decade as the Concept Style Coupe and now in its third series-production iteration – though since 2019 a more conservatively styled A-Class Sedan has also existed, that goes up against Audi’s A3 Sedan.
But we digress. Now there’s a “new” 2 Gran Coupe, coded F74, though it’s really a heavy facelift of the superseded F44. Oh, and the ‘i’ no longer exists in the badge, so (M-enhanced models aside) it’s just numbers from here on in. 218. 220. M235.
Regardless of names, does it live up to the BMW promise?
This is arguably the car that really made Toyota's GR performance division really take off. And it just got a bit better.
The GR Yaris was already an awesome thing, but more power, an interior refresh and a bunch of mechanical changes aim to lift the bar again. And even better, you can now get one without the third pedal.
So how much better is the 2025 Toyota GR Yaris now? And is the auto any good? We've driven this rally-bred hero on track and in Victoria's high country to find out.
The badge might say one thing, but the 2 Series Gran Coupe sticks to the time-honoured template of being a compact yet comparatively practical three-box, four-door sedan, complete with a big boot.
More importantly, it drives and behaves like a BMW – which means sufficient-to-strident performance depending on grade, athletic dynamics and pleasing refinement on one hand, as well as a stiff price and a hard ride on the other.
A true BMW in name and nature, then..
Note: CarsGuide attended this event as a guest of the manufacturer, with travel, accommodation and meals provided.
You already could have argued the GR Yaris was the best car Toyota made even before its update.
The GR Yaris’ refreshed interior and its slight bump in performance are the result of plenty of feedback from owners and even racing drivers that Toyota took on board, and the result is an even better sports car.
It helps that it’s not prohibitively expensive in the grand scheme of the new-car market these days.
Now, I reckon even fans of the rear-drive Toyota GR86 might start to doubt their preferences after a stint behind the wheel.
Note: CarsGuide attended this event as a guest of the manufacturer, with accommodation and meals provided.
BMW is calling the F74 a new-generation 2 Series Gran Coupe, and there have been obvious and even profound changes throughout and underneath, including to some of the sheetmetal.
But this is not an all-new car by any stretch, with the glasshouse, doors and roof amongst many other body items carrying over from the F44.
That now remarkably Kia Cerato-esque nose ushers in new LED lighting motifs and an updated kidney grille, but whether they sit easily with the rest of the car is debatable. Redesigned tail-lights, different colours and new alloys make up the majority of the exterior changes.
Betraying the latest 2 Series Gran Coupe’s newness claims are near-identical dimensions, with that redesigned front end and bumpers contributing to a 20mm increase in the F74’s 4546mm length, while revised suspension and damper settings help account for the 25mm boost in height (to 1445mm). The BMW’s 1800mm width and 2670mm wheelbase remain the same.
There’s a higher level of newness to be found inside.
The GR Yaris isn’t just a regular Yaris with sports bits stuck on, and because of that it looks fantastic.
It’s properly aggressive, sculpted to look more like a rally car than other Yarises (I’m not calling them ‘Yarii’), even down to the fact it’s a two-door design.
A carbon-fibre roof, aluminium bonnet, doors and tailgate, plus a series of functional aerodynamic and cooling features prove the Yaris doesn’t just look like this for show, though.
The redesigned front bumper directs air to more radiators for extra cooling but also through to the front wheel arches to cool the brakes.
Another change is the tail-light bar, which spans the rear and does away with the light integrated into the rear spoiler, which is now also body coloured. Down below that, larger exhaust tips reflect a more powerful engine.
There’s also significant change inside. The repositioning of some elements for better ergonomics make the GR Yaris a much more driver-oriented space inside, and despite some soft-touch materials it has a race car vibe to it.
The interior centre stack no longer looks like a standard Toyota interior, and the fact Toyota went to the effort and cost to do this purely because of driver feedback shows how serious it is about its GR division’s future.
During the media presentation at its launch, BMW described the 2 Series Gran Coupe as being almost as large as a 1990s E46 3 Series, and it is in all major dimensions except wheelbase.
Plus, being a front-drive-biased/transverse engine proposition instead of rear-wheel drive should make it roomier than the F74’s iconic ancestor.
The sense getting in is that this is certainly not too low or cramped as per a more-traditional coupe, with plenty of space for legs and shoulders, while even the optional sunroof fitted to our 218 left us with headroom to spare.
The redesigned dash is a visual and operational treat, with crisp, clear instruments, a logically presented and intuitive centre display screen offering fast and easy operation, excellent ventilation and ample storage. Full marks here.
Better still, attaining the perfect driving position is possible for most people, on brilliantly supportive front seats. This is the stuff BMW does right.
Improvement suggestions for the next update? Some people may complain about the somewhat less-than-premium feel of some of the lower-lying plastic trim; not everybody will love the swatches of colour stitching (we love it); why does the steering wheel have to be so wide-of-rim? Side and rear vision is restricted by fat pillars, rising shoulder lines and a shallow rear window; and there is quite a bit of road noise that enters the cabin at speed.
Still, even the back seat is sufficiently spacious for most users, with the sole exception of taller folk having to negotiate a sloping rear roofline. If you’re below 180cm, this should be fine. Most amenities minus overhead grab handles are also fitted.
Further back, the boot is surprisingly accommodating, with 430 litres of cargo capacity that’s enhanced by a 40:20:40 split-fold backrest, and the aperture should be big enough for bulkier loads, but the lack of a spare wheel will be bad news for many buyers. The supplied tyre-repair kit is just not good enough.
But, you know what is good enough? The engines BMW builds, that’s what.
The changes to the GR Yaris interior come down to useability as a sports car.
Thanks to the update, some pre-update complaints about ergonomics like the driver’s seat being too high or impeded visibility have been addressed.
The seat is now 25mm lower and feels much more natural in terms of eye-level and body positioning, but also allows more space above to fit a helmet on your bonce.
The pedals have also moved for easier heel-toeing, while the steering column angle has been adjusted to feel more natural.
Additionally, the dash panel is now tilted towards the driver by 15 degrees more and there’s better visibility between the dash and rear-view mirror with the multimedia screen now integrated into the centre stack.
Essentially, the Yaris has undergone a generation-level update in the interior and is much better for it.
Everything falls to hand without the driver needing to move their shoulders, but at the same time it doesn’t feel cramped.
While the second row is near unusable for adults - plus only seating two - the 174-litre boot is only 39L less than the GR Corolla. It’s not much space at all, really, but fold the seats down and there’s space for track day gear, maybe even a spare tyre or two. Not that there’s a standard space-saver spare with the car. Just a repair kit.
This depends on how much you buy into this being a sporty Gran Coupe rather than a small sedan.
From $59,900 (all prices are before on-road costs), the German-made front-wheel-drive 218 base grade is slightly cheaper than the previous 218i equivalent, yet gains more kit. It also matches the A200 Sedan and costs a bit more than the (also recently facelifted) A3 Sedan, while offering similar performance and equipment to both.
Along with a host of advanced driver-assist safety (ADAS) systems like adaptive cruise control – to be covered in more detail later on – the base 2 Series Gran Coupe comes with the M Sport styling package inside and out as standard.
You’ll also find goodies like adaptive LED headlights with auto high beams, adaptive dampers, keyless entry/start, a curved all-in-one 10.25-inch instrument display/10.7-inch centre control display using BMW’s latest OS9 system offering cloud-based navigation, an M Sport steering wheel, heated sports front seats, a head-up display, surround-view camera, wireless smartphone charger, Apple CarPlay/Android Auto, BMW Connected Drive with auto emergency call and other services, artificial leather upholstery, a 40:20:40-split backrest, an electric tailgate and 19-inch M-Sport alloy wheels.
From $62,900, the 220 ditches the 218’s 115kW 1.5-litre three-cylinder turbo petrol engine for a 150kW 2.0-litre four-pot turbo, while the 233kW M235 xDrive from $86,600 adds a lot more muscle to that 2.0-litre engine, all-wheel drive, more ADAS tech, massaging front seats, a Harmon/Kardon audio upgrade, uprated brakes, a panoramic sunroof, a heated steering wheel, rear spoiler and higher-gloss trim.
Many of those items are available with a $6700 Enhancement pack on the lower grades.
These more-or-less line up with rival premium small sedans.
Note, though, that they are expensive compared to fine mainstream C-segment alternatives costing far less, like the Subaru WRX, Toyota Corolla hybrid and Mazda3. Or Hyundai’s criminally underrated Ioniq 6 EV. Labels, eh!
Still, for some folk, the 2 Series Gran Coupe’s swoopier silhouette might make it seem like more of a rival to the sleeker CLA than a mere A200/A3 competitor, and that Benz kicks off from about $15K more than the 218. If that’s you, the BMW might be construed as a bit of a bargain.
Since we’re talking about styling, let’s take a deeper dive into the F74’s newly minted looks.
The GR Yaris comes in two grades, now called GT and GTS, and they're both available with either a six-speed manual or eight-speed automatic transmission.
The ‘entry’ GT comes in at $55,490 plus on-road costs for the manual or $57,990 for the automatic, and has plenty of kit for a performance-focused light hatchback including heated suede and leather-accented sports bucket seats, a leather heated steering wheel and leather-wrapped gearshift, aluminium pedals and park brake lever.
On the tech front you get an 8.0-inch multimedia touchscreen and 12.3-inch digital instrument cluster, USB-C and 12V power sockets, an eight-speaker JBL audio system, wireless Apple CarPlay and Android Auto and digital radio.
The GTS comes in at $60,490 or $62,990 for the manual and auto respectively, and add some performance extras like a set of 18-inch BBS forged alloy wheels wrapped in Michelin Pilot Sports 4S tyres, red GR brake calipers and upgraded GR sports seats.
The GTS also gains a Torsen limited-slip differential, upgraded GR suspension, a sub-radiator for better cooling as well as intercooler spray.
At this price point, the GR Yaris is wanting for proper rivals. Similarly-priced cars like the Hyundai i30 N and VW Golf GTI are bigger, front-drive and less focused, while similarly-sized cars are either less powerful or less capable, like the Abarth 695 or Hyundai i20 N.
Three F74 powertrain choices are available for Australia in 2025. And none even remotely reflect what their respective badges imply on the boot.
The 218, for instance, is not powered by a 1.8-litre engine, but BMW’s long-lived B38 1.5-litre three-cylinder turbo petrol unit. Making 115kW of power at 6500rpm and 230Nm of torque between 1500rpm and 4600rpm, drive is channelled to the front wheels via a seven-speed dual-clutch transmission (7DCT).
With a kerb weight of 1420kg, the 218 has a power-to-weight ratio of 81kW per tonne, helping it achieve the 0-100km/h sprint time of 8.6 seconds, on the way to a 230km/h top speed.
Not enough? The 220 features the ubiquitous B48 2.0-litre (not a 2.2-litre) four-cylinder turbo petrol engine/7DCT combo, pumping out 150kW at 6500rpm and 300Nm from 1450-4500rpm. Tipping the scales at 1525kg for 98.4kW/tonne, its 0-100km/h time is 7.3s and top speed is 250km/h.
Want more? Stretching to the M235 xDrive sadly doesn’t mean a 3.5-litre in-line six, but a modified B48 2.0L/7DCT duo, delivering 233kW at 6500rpm and 400Nm from 2000-4500rpm to all four wheels. Result? Weighing just 50kg more than the 220, it boasts a heady 148kW/tonne, for a 0-100km/h of just 4.9s and a 250km/h v-max.
As with all of the UKL2/FAAR transverse-engine front-to-AWD platform models from non-electric Minis through to sub-X3/3 Series BMWs, you’ll find MacPherson-style struts up front and a multi-link independent rear end out back.
If you’re reading this outside of Australia, you may notice that none of the current F74 models offer mild-hybrid tech, in contrast to their European counterparts. And don’t go expecting any manual gearboxes either, unfortunately.
The GR Yaris now makes 221kW (at 6500rpm) and 400Nm (between 3250 and 4600rpm) from its 1.6-litre three-cylinder turbocharged petrol engine, dubbed G16E-GTS in Toyota code.
Outputs are up 21kW and 30Nm from before, and both the six-speed manual and eight-speed torque converter automatic have matching figures.
Normal, Track and Gravel modes for the AWD system can distribute torque either 60:40 (front/rear) in Normal, 53:47 in Gravel or variably as needed in Track.
Toyota says, weirdly, both versions can hit 100km/h in 5.1 seconds and max out at 230km/h. We expect you’d need to be fairly handy to match the auto’s acceleration in a manual.
OK, so is the 2 Series Gran Coupe cheap to run?
BMW reckons the 218 and 220 will average 6.3 and 6.7 litres per 100km, which means combined average carbon dioxide emissions ratings of 143 and 152 grams/km respectively.
Filling the 49L fuel tank with 95 RON premium unleaded, that translates to around 775km in the 218, and 730km in the 220 between refills.
Predictably, the M235 xDrive uses more, at 7.7L/100km for a CO2 rating of 176g/km. That’s a distance of about 635km.
Over our launch run, which took us from Sydney’s Circular Quay to Wollongong, the 218’s trip meter was reading in the high 8s and about 10 for the M235.
Toyota claims the GR Yaris sips 8.2L/100km of fuel (which needs to be 98 RON by the way) in manual, or 9.1L/100km as an auto.
Its 50-litre tank means you should be able to get more than 500km out of a tank of fuel if driving frugally, but let’s be honest, are you going to do that in a tiny all-wheel-drive hot hatch with a 0-100kmh time that would embarrass a great number of Aussie V8s?
Earlier, we mentioned that the 2 Series Gran Coupe is way more expensive than fine alternative sedans like the Mazda3 and Toyota Corolla.
And while that still stands, there is a remarkable solidity and refinement difference between those and the BMW that helps justify the premium. And nowhere is this more evident than from behind the wheel.
Sat on body-hugging seats and clutching that (too chunky) steering wheel, there is a sense of sporty occasion, backed up by quality trim and an aroma of expensiveness.
For a turbo three-cylinder car weighing 1.5 tonnes, the 218 does a lot with a little, offering spirited off-the-line acceleration and pleasingly lag-free throttle responses at lower speeds. You’d never call it fast, but it is a quick point-to-point urban mover. Only the unavoidable three-pot thrum lets you know you’re in the lowest mechanical spec. And, also, the delay at freeway speeds in building momentum when overtaking.
Which is why, for less than five per cent extra, the 220 with the 2.0-litre four-cylinder turbo would probably make a better buy. Sadly, that isn’t on sale yet in Australia, so we missed out on driving it during the Sydney launch. But in the scores of other BMWs and Minis we’ve tested this in, it’s a cracking little powertrain.
Whether the big leap (nearly $25K worth) to the M235 is worth it depends on how fast you drive and how much you value/need AWD. This is a terrifically muscular machine, since it provides rapid performance via a tidal wave of power, even with the lightest flex of your right foot. On-point and on-brand, this fun and fiery flagship possesses the grand-touring spirit that the rakish design and tech-heavy engineering promise.
To that end, in both the 218 and M235, the steering makes the driver feel connected to the car, resulting in precise and controlled handling. The driver-assist safety tech is beautifully calibrated and nuanced in its intervention, and the brakes are second-to-none.
What is also on-topic for a BMW is the firm suspension, despite the adaptive dampers fitted as standard equipment.
It isn’t stiff or overly uncomfortable, but bumps are certainly always felt, and they’re accompanied by fairly constant road-noise drone over some surfaces.
As such, you’re constantly reminded that dynamic athleticism is the priority here, rather than sumptuous comfort. We’ve experienced much worse from BMW, but a magic-carpet ride isn’t what’s in store for the 2 Series Gran Coupe owner.
So, what’s our verdict then? The 218 is a rorty little tryer that never fails to involve the driver, while the M235 ushers in an elevated level of acceleration, grunt and grip. We suspect that the 220 will be the Goldilocks-zone happy medium.
For (largely) better as well as for (occasionally) worse, these drive and feel like a BMW should.
To get straight to the point, the GR Yaris might be the best car Toyota builds if you’re a keen driver.
Most who’ve driven it in the past will know it’s extremely fun with a manual gearbox, but after the update it’s impressive how capable the new auto makes it, too.
For a start, while its GR Corolla sibling feels as it is - a hot hatch based on the Corolla - the GR Yaris feels bespoke.
From behind the wheel, as a performance car, there isn’t really anything that jumps out as a red flag.
Now that it’s got more power and torque, it’s also an even more convincing choice in Toyota’s hot hatch duo in terms of power-to-weight ratio.
Of course, it still holds up well as a car for day-to-day duties, if looking a little brash while doing so. In Normal drive mode with the diff set to front-bias, the GR Yaris feels ready to take on the suburbs.
But knock it into Sport and set the diff to Track, and you’ll find the rear wheels working harder out of corners as the Yaris sends torque backwards to avoid the front wheels spinning.
The Yaris’ suspension is definitely on the stiffer side of things, but it’s compliant considering the focused nature of the GR, and even sharp bumps you might expect to rattle the car don’t feel harsh.
At the same time, the GR doesn’t feel like it’s dulling any useful feedback from the suspension or steering, the latter being very direct but not too heavy.
It’s altogether very confidence-inspiring, and combined with the fact the GR Yaris is actually very capable, it makes for a rather quick car point-to-point. It means even if you make a small mistake, say coming into a corner on track, you don’t feel as punished on the way out because there’s a mix of power and composure to get you out of it.
Some of the best things about the Yaris though, are the things that speak to your heart a little more than your head. The sound of the exhaust itself but also the turbo flutter when you lift off after boost - even just the way it looks inside and out.
The latest, F74 2 Series Gran Coupe scores neither an ANCAP nor EuroNCAP rating at this stage, but its F44 predecessor managed a five-star result back in 2019.
For the latest version, BMW is highlighting an elevated level of advanced driver-assist safety (ADAS), including lane-change/departure alerts, forward collision warning and automatic emergency braking tech that detects vulnerable road users like pedestrians and cyclists, rear cross-traffic warning, exit warning, adaptive cruise-control with full stop/go functionality, blind-spot monitor and traffic-sign speed-limit alerts.
No information on AEB operating parameters is available as yet for the F74, but the earlier series’ low-speed AEB worked from 8km/h to 85km/h and inter-urban AEB kicked in between 5-80km/h, while the lane-support systems functioned from 70-210km/h.
Tyre-pressure warning, 360-degree surround-view cameras and six airbags are also included, along with Parking Assistant Plus that brings sensors, automatic parking, a reverse assistant that automatically retraces the last 50 metres travelled and a drive recorder.
Note that the 218 misses out on the 220/M235 grades’ ADAS-related crossroads warning, evasion assistant tech, lane-keeping assist with active side-collision prevention and front as well as rear cross-traffic warning. These are available in the aforementioned Enhancement Pack, but at this lofty price point, they should be standard.
Finally, there are ISOFIX child-seat anchorages in the rear-seat outboard positions, along with a trio of child-seat tether latches.
The GR Yaris isn’t the same as its non-GR cousins, and therefore the five-star rating ANCAP gave the Yaris a few years back doesn’t apply here.
Still, Toyota takes safety pretty seriously and the GR comes with the kit to back that up. Six airbags for a start, plus a decent reversing camera, auto emergency braking (AEB), a blind spot monitor, safe-exit assist, anti-skid brakes with brake assist and plenty of traction help.
There’s also a slew of features that fall under the ‘Toyota Safety Sense’ suite including a pre-collision system, intersection collision avoidance in daylight, emergency steering assist, adaptive cruise control, lane trace and steering assist with lane centring, lane departure alert, road sign assist for speed signs and auto high beam.
Here, however, is where BMW can do a bit better.
While the five-year/unlimited-kilometre warranty is where most premium brands are, it falls short of several Asian alternatives. Roadside assistance is for just three years and there is no capped-price servicing.
Service scheduling is also condition-based, meaning the vehicle will alert the driver when a service is imminent. This may not suit everybody, and we always recommend at least every 12 months or 10,000km, just to be on the safe side.
BMW does offer pre-paid service packs that take in basic maintenance for the first five years at $2369 or $3782, including brake-pad replacement, which works out to be about $475 and nearly $760 annually respectively. There is also a cap on mileage during that time frame: 80,000km.
Toyota’s five-year/unlimited kilometre warranty covers the GR Yaris, with an extra two-year warranty on the engine and driveline.
Toyota also offers a capped price of $310 on the first six services, though intervals of six months or 10,000km (whichever comes first) mean that capped price will only get you through three years of ownership.