Toyota Corolla 2026 News

Fuel prices in Australia are soaring, meaning fuel efficiency in vehicles is a more important consideration than ever. Hybrid cars offer the potential for superior fuel efficiency compared to internal combustion power without the big price premium if fully electric or plug-in hybrid options. This makes them an increasingly attractive option for buyers given the current global climate. Hybrid sales are already booming in Australia, but will increases in fuel prices accelerate the shift away from pure internal combustion cars? NRMA spokesperson Peter Khoury said that while hybrid sales are increasing, an even swifter transition is less than clear. “If you’re driving a standard vehicle with a 55-litre tank, compared to what we were paying before the war began to now, it’s a $45 increase on one tank of petrol. That applies regardless of whether it’s hybrid or petrol,” Khoury said. “Historically speaking, looking at what happens after an oil shock, it certainly opens up their consideration. “No doubt that if this crisis continues and these prices hang around for weeks or months, Australians will look at those alternatives more seriously.” Below is a comparison between popular petrol and hybrid choices in each segment to see how they stack up in a changing fuel context. Fuel cost has been calculated using current data from the New South Wales’ government’s average fuel price for unleaded 95 petrol and diesel. Toyota’s Corolla hybrid hatch offers superior fuel efficiency and driving range compared to the Kia K4 petrol model. The Corolla is also cheaper to fill up with fuel thanks to its smaller tank and offers a substantially bigger driving range. The Kia Seltos is a petrol-only variant, but despite its bigger fuel tank, it has less driving range than the Toyota Corolla Cross, courtesy of the hybrid powertrain. The bigger fuel tank means the Seltos is also more expensive to fill up. The mid-size CX-5 has a non-turbo charged petrol engine, which sees it offer an impressive estimated driving range of more than 800km, but once again the Toyota competitor’s fuel efficiency wins out in the RAV4 hybrid. The Toyota Kluger continues the Japanese juggernaut’s fuel efficient theme, with a hybrid set-up offering a driving range of more than 1122km, which is significantly more than the MQ QS, despite both cars costing a similar amount to fill up at the bowser. Utes are some of the worst affected by the fuel price increase as many of them are powered using diesel engines, with diesel fuel rising more than petrol. It has now risen to well beyond the $2.60 mark per litre. The BYD Shark’s plug-in hybrid set-up uses petrol, which makes it an affordable option, given the price of diesel. It should be noted that the Shark 6’s fuel efficiency is significantly reduced when the battery is not charged. It’s a similar story for the GWM Cannon Alpha, which should be noted is no longer on sale, but remains one of limited plug-less hybrid utes in Australia. 

A combination of increasing component costs, ever-higher safety and emissions requirements as well as the need for new-generation tech to match fast-moving competitors has driven the domestic entry price for Toyota’s Corolla close to 60 per cent higher over the last decade.According to data from the Statistics Bureau of Japan (SBJ) as originally reported by Nikkei Asia the price of an entry-grade Corolla sat at ¥2.28 million yen (~$20,600) in 2025, up from ¥1.45 million (~$16,100*) in 2015. *Based on an average 2015 Yen/AUD exchange rate.For reference, in Australia a base Toyota Corolla Ascent auto cost $21,790, before on-road costs, in 2015. And in 2025 the entry-level Corolla Ascent Sport was $29,610, BOC, an increase of just over 35 per cent.As the statistical arm of the Japanese Ministry of Internal Affairs and Communications, the SBJ not only manages the country’s population census but tracks thousands of day-to-day consumer costs - from school fees and railway fares to baby clothes and soy sauce.A range of factors, including inflationary pressure driving up component supplier costs, increased standard safety requirements and tightening fuel economy and emissions legislation has driven the price rise.In recent years, emerging global competitors, particularly from China, have also placed greater emphasis on driver assist tech and multimedia functions driving the need for additional cameras, radars, microchips and more.Over the same 2015-2025 period, average Japanese worker income increased around 10 per cent and in early 2024 the Bank of Japan’s policy interest rate rose for the first time since 2007 and has been gradually rising since).Much of Japan’s car finance business is underpinned by residual loans (similar to a finance lease) at low interest rates and the rising cost of money is pushing car ownership out of reach for many potential buyers.SBJ data show even ‘kei’ city cars, the production of which is shaped by government incentives to provide low-price, fuel- and space-efficient new vehicle options to help keep the population mobile and the domestic car manufacturing business humming, have risen steeply in price.Specifically, 33 per cent from an average entry-price of ¥1.18 million yen in 2015 to 1.76 million yen (~$15,900) in 2025.And in heavily built-up areas car-sharing is an increasingly popular kei car alternative; a contributor to Japanese domestic market new-vehicle sales being down 10 per cent in 2025 compared to 2015.Evolving tastes have impacted relative pricing as Japanese consumers lean more towards full-size SUVs and people movers than compact cars.Prices of ‘Compact Passenger Cars’ increased 31 per cent to ¥2.39 million (~$21,500), while ‘Full-sized Passenger Cars’ rose 24 per cent to ¥3.72 million (~$33,500).At the same time, sales of full-sized passenger vehicles were up 30 per cent in 2025 compared to 2015, while compact passenger cars softened by 40 per cent.

The current Toyota Corolla is almost done for, it is eight years old now and a new version is just around the corner.Toyota previewed the next-generation small car at the 2025 Tokyo Mobility Show, with a head-turning concept car.A production version will feature watered down looks from the edgy and wild looking concept — as is the case with most concept to production transitions.New digital renders from KDesign AG on Instagram shows the next-gen Corolla adopting the company’s hammerhead design with its distinct C-shaped headlights, wide mouth frill and pinched front end.There aren't many concrete details on the new Corolla, but we know there will be something for everyone.It will be the new people’s car, available with the option petrol hybrid, plug-in hybrid, electric and even hydrogen power in the future.Toyota is working on a new series of turbocharged petrol engines, which could be installed in the petrol, hybrid and plug-in hybrid versions of the Corolla. These engines are supposed to be high output units that are compatible with carbon neutral fuels.The most obvious one would be the 1.5-litre four-cylinder unit, with the 2.0-litre motor rumoured to make up to 300kW when paired with hybrid power.The final look isn’t known but it will likely follow a similar design path as the Camry and C-HR, which is shown in the digital renders.The renders show the Corolla in a sedan shape, but it has a softer shaped rear end with the sloping rear roofline better integrated into the boot, giving it more of a liftback than sedan appeal.This new look also ties into recent images of a new Corolla-sized sedan in China.There is a good chance the Chinese version is different from the one we will see, as it is built by the company’s joint venture with FAW.It is not unusual for China to get unique looking vehicles compared to the rest of the world.Expect to learn more about the next-gen Corolla over the course of 2026.

Toyota is aiming to have its range of vehicles be at least 30 per cent built from recycled materials by 2030, as new EU regulations are expected to target more than just tailpipe emissions in the next decade.Toyota is focusing on recycled metals, such as re-forged steel used from crushed or deconstructed vehicles as part of an extensive ‘circular economy’ push and to reduce waste.A strategy document shows various initiatives Toyota will be undertaking, which includes up to 25 per cent recycled plastics used in new vehicles by 2030, a declaration on the content of recycled metals (including steel, aluminium and magnesium) for its vehicles by 2028, and future designs will be easier to deconstruct when they reach end of life.The brand flags 19 parts including catalytic converters, bumpers, EV batteries and motors to be designed to be easily removed from scrap vehicles and deconstructed future range of vehicles.Part of this push is to comply with existing and incoming European regulations on materials use and recycling for cars. Regulations around end-of-life products require 25 per cent of plastics used in cars to be from recycled materials, while battery regulations require “recycled usage rate” targets for key materials like lithium, cobalt, nickel and lead.In total, Toyota is “aiming to achieve a recycled material rate in its vehicles sold in Japan and Europe of 30 per cent or more by 2030”. The 30 per cent figure is not by number of parts but by total weight of the vehicle.The report notes there are easier gains to be made toward this goal in the recycling of steel in order to reduce new raw materials used, plastics, meanwhile, are much more difficult to process due to the differences in materials used, and volatile components within them which make them expensive to re-process into new materials.Thanks to this new initiative, Toyota’s Gosei plastics manufacturing subsidiary has developed materials with a 50 per cent recycled plastic content and performance equivalent to newly-made plastics, which it says is a world-first. Examples of this material being used are in the glovebox and grille-backing material in the new Euro-market Camry.Other new Toyotas using recycled plastics include the incoming new-generation RAV4 and the Crown Sport SUV.As the majority of Toyota models sold in Australia are built in Japan, we can expect at least some of its more popular vehicles the RAV4, Corolla, and Camry to be made of this 30 per cent-by-weight recycled materials.While the goals seem to apply at a global level for the brand, it is unclear at this stage whether the targets for vehicles built in Europe and Japan will also apply to vehicles built in Thailand, like the ever-popular HiLux ute.Other brands will have to have similar targets for materials recycling in order to continue to sell vehicles in Europe, with regulators also expected to come after other non-exhaust particulate matter, like tyre waste and brake dust.As a result, many manufacturers are experimenting with re-introducing drum brakes, which capture waste, or using brake systems that heavily rely on regenerative braking via electric motors with back-up friction brakes contained in the motor assembly (inboard brakes), rather than discs on the wheel hub.One of the leaders in the sustainability space, Polestar, issues a sustainability report claiming its new Polestar 4 has the lowest lifecycle emissions in its entire range, despite it wielding a massive 100kWh battery pack. The brand says this is largely due to advances made in using recycled aluminium and steel in the car’s frame, as well as renewable energy power used in its factory and by suppliers.Nissan is also aiming for a 30 per cent recycled material target, while BMW is aiming for a 50 per cent recycled material content by 2030.

Toyota has spoken about its multi-pathway powertrain strategy for decades now and it will take a new step up with the new-generation Corolla.

The SUV domination of the new car market could bring down some of the most famous names in the business — or redefine them.

An upgraded, sharper Toyota Corolla hot hatch Toyota has been developing all year has been leaked at a dealer event in the US.

Toyota is currently on a roll with its models gaining its new corporate exterior design and the next in line appears to be the Corolla.Details and imagery of this updated small car have been published by China’s Ministry of Industry and Information Technology (MIIT) via CarScoops. Only the sedan has been detailed as it’s the only body style offered in the Chinese market.At the front there is a hammerhead shark-like look that’s very similar to the current Camry, C-HR and Prius, as well as the forthcoming new-generation RAV4.It features a C-shaped daytime running light (DRL) set-up that is joined up by a full-width light bar. The main headlight units appear to be mounted separately under the C-shaped part of the DRLs in a black section that connects up to the lower air intake.The side profile appears to be unchanged besides new 16- and 17-inch alloy wheel options.At the back there’s more black trim around the tail-lights and a slightly reworked bumper.There are no interior images or details provided.According to filing there are both petrol and hybrid powertrains available.The former is a 2.0-litre naturally aspirated four-cylinder petrol engine that produces 126kW, whereas the latter has a 1.8-litre petrol engine that produces 72kW that’s married to a hybrid system with a nickel cobalt manganese (NMC) lithium-ion battery.At this stage it’s unclear whether this update to the Corolla will be for China only, or if it will be available in other markets.Ever since the current, 12th-generation Toyota Corolla was revealed in 2018, it has been made available in a number of different body styles and types, now including a high-performance GR version.In Australia we receive the regular hatchback and the ‘sporty’ version of the sedan. In other markets, including China, there’s a ‘prestige’ version that’s also available.A wagon version of the Corolla is offered in other markets and is rebadged to the Suzuki Swace for Europe.Locally the Toyota Corolla is the best-selling small passenger car by far and has been for a long time.In the first eight months of 2025 a total of 13,145 examples have been sold, which is technically down 25.8 per cent year-on-year.Its closest rival is the Hyundai i30 (7447 sales YTD), followed by the Mazda 3 (7191 sales YTD) and the Kia K4 (3855 sales).

Kia has reiterated its focus on affordability in Australia, with the imminent K4 five-door hatchback to slot alongside the K4 sedan released earlier this year to help it fight off cut-price alternatives from China.Sourced from Mexico but designed for global markets including Europe, the Cerato hatch replacement may even start from under $30,000 (all prices are before on-road costs), matching the Hyundai i30 Sedan (from $29,000).But, even if the K4 Hatch goes slightly over that price, it would likely still undercut the best-selling Toyota Corolla Ascent Sport Hybrid (from $32,110), as well as the Mazda 3 Pure (from $31,310) and Hyundai i30 N-Line (from $36,000) hatchback equivalents.With the Picanto city car from $18,690 currently Australia’s cheapest new vehicle, as well as the Stonic S small crossover from $25,660, K4 Sedan from $30,590 and Seltos S from $30,750, the K4 Hatch should substantially boost Kia’s fortunes at the bottom end of the new-car market.Feeding into consumer preference for hatchbacks over sedans in the small car segment, the sharply-styled K4 five-door looks – and is – shorter, yet has a larger (and more practical) cargo area, at 530 litres versus the four-door’s 508L.Plus, as with many other models, the newcomer has undergone an Australian-road tuning program run by engineering specialist, Graeme Gambold, giving it a distinct advantage against many other small-car alternatives.According to Kia Australia product planning manager, Roland Rivero, Kia is committed to providing accessible small cars that Australian buyers want, especially as competitors abandon them for crossovers and SUVs.“Picanto not going anywhere anytime soon, and it remains our entry into the Kia brand. And we're pretty happy with what Picanto has done for us, and that's going to be around for a long, long time yet,” he told CarsGuide.“And as for K4 is not going anywhere either, and K4 is going to have a full life, and we've committed to the Mexican factory to do our respective share. So far so good.”While the sedan version has tripled the preceding Cerato hatch and sedan’s January to July sales this year compared to the same period last year with 3322 registrations, it will be the hatch that presents the most promising volume opportunity in Australia.“Obviously, we can't wait for the hatchback to come along,” Rivero admits. Because that's what the market appetite is for. What was the split that we had with Cerato hatch to sedan? I think it was, like, 65 per cent hatch, versus 35 per cent sedan… (Australia) is a hatch market.”Of course, it isn’t just benevolence driving Kia’s move to offer greater small-car choice, since it seeks to better-offset their smaller carbon footprint against the larger, thirstier and dirtier SUVs (as well as the Tasman ute), reducing the likelihood of coming New Vehicle Efficiency Standard (NVES) penalties.That’s why the K4 Hatch will switch to an Atkinson Cycle 2.0-litre four-cylinder petrol engine – as found in the current Seltos as well as the related i30 Sedan 2.0P – that is more efficient and emits, according to Rivero, some 30 per cent fewer emissions than the regular, 112kW/192Nm version found in the K4 Sedan. The trade-off is a slight loss of power and torque, at 110kW and 180Nm respectively.Given the Hatch is poised to be the K4 volume seller, that should help Kia’s bottom line in more ways than one.