Peugeot 408 vs Toyota Corolla

What's the difference?

The Peugeot 408 GT Hybrid delivers heaps of standard equipment and safety tech for what is now a much more competitive price. It’s also super fuel-efficient, which is right for these turbulent times, offers thoughtful practicality and the wagon-fastback-crossover-SUV look is striking. The price paid for miserly economy is a peaky small-engine powertrain and the ownership promise isn’t exactly class-leading. That said, it deserves consideration in its new, even more competitive under $60K mid-size SUV segment.

The final score for this review makes it look as though the Corolla is a middling effort. The scores for each individual section of the review are well considered and fair. The Corolla does lack the practicality of some of its rivals. A lack of an ANCAP rating isn’t great and the powertrain is just okay. But it remains one of the most fun-to-drive hatchbacks on the market today, even seven years into its life, and I would wholeheartedly recommend the Corolla to anyone looking for a small car. If you can forgive some of the quirks, it is a reliable, adorable, fun and efficient small car favourite. 

Peugeot Design Director Matthias Hossann has been guiding the brand’s look and feel since 2020 and the result is a recognisable approach across the range with enough flexibility to give each model its own personality.

Recurring themes include the dramatic, fan-like grille with body-colour elements, narrow angled LED daytime running lights (DRLs) slicing through the outer edges of the nose and sinister tapered headlights set into the front corners.

The rear end maintains the visual drama with a stacked, angular treatment sectioning off the ‘Claw Effect’ LED tail-lights (the Peugeot brand mark is a Lion), chamfered mid-section and chunky bumper.

And among what increasingly feels like a mass of same-same newcomers the 408’s sloping turret and high, wide haunches give the car a distinctively sporty fastback look.

The interior is classy and clean although the almost uniformly grey colour palette is unrelenting.

The two-tier dash adds visual interest and a combination of sweeping curves and clean, straight lines around the cabin lift the tone. Nappa leather trim with the ribbed seat centre panels using perforated hide also looks classy.

But then we come to the ‘iCockpit’ instrument display and steering wheel combination. It’s based on the idea that reducing the size of the steering wheel and lowering its position while flattening its top and raising the location of the instrument binnacle is a better solution than the traditional look-through-the-steering wheel approach.

It doesn’t work for everyone and it doesn’t work for me. As noted in previous Peugeot reviews, after more than a decade in existence various members of the CarsGuide editorial staff continue to struggle with the arrangement, while others love it. 

For me, the wheel feels too low, yet the top of it obscures the lower part of the instrument panel. While it may work well for others I see it as the answer to a question no one was asking.

It’s been around for a good seven years, but the current-gen Corolla hatch is still a smart design. It has a squat stance and looks as though it has sporty intentions (it doesn’t), and the head and tail-light treatment doesn’t look like anything else in the segment.

The Corolla has adorable proportions and a pert little behind in a sea of increasingly boring small SUVs.

However, in SX trim and in the ‘Sunstone Orange’ body colour of my test car, the Corolla gives off rental car vibes. Which is hardly surprising given lower grade Corollas are a favourite of rental companies.

Inside that vibe continues. This is where the Corolla is really showing its age.

There are various shades of grey throughout the cabin, with a mix of hard and soft plastics. The cloth seat trim is drab, which is a shame because some other brands have managed to make cloth cool again. Not Toyota.

The touchscreen sticks up out the top of the dash like an old iPad and the dash design is old but functional. 

There is nothing inspiring about this interior design. In saying that, of those aforementioned rivals, only the Mazda3 and the new Kia K4 have modern cabins.

At close to 4.7m long, around 1.9m wide and a bit less than 1.5m tall with a 2790mm wheelbase, the 408 sits in the middle of the typical mid-size five-seater footprint.

Ample room in the front, although the lower section of the two-tier dash protrudes a fair way towards the driver and front passenger and the centre console is broad so it feels snug rather than airy.

Storage includes generous door bins with room for larger bottles, a lidded (and illuminated) bin between the seats that doubles as a centre armrest, two cupholders in the console with an oddments tray ahead of them and a decent glove box with an extra pocket built into the lid.

Switching to the rear, sitting behind the driver’s seat set for my 183cm position, there’s loads of leg- and headroom and enough width for three adults when required and more than enough for a trio of up to mid-teenage kids. Centre rear is less of a short-straw position, too, thanks to a relatively low and flat central tunnel.

The lack of a fold-down rear centre armrest is a miss mainly because it means there are no cupholders in the rear. But there are decent door bins with a space for smaller bottles, netted map pockets on the front seatbacks and a storage cubby at the back of the front centre console.

Speaking of which, individual air vents in the back of that console are a welcome addition.

 The boot is large for the class at 508 litres (VDA) with the rear seat upright and 1583 litres with the 60/40 split-folding backrest folded down. The power tailgate (with foot sensor and pedestrian detection) also makes life easier.

Other thoughtful touches include four load tie-down anchors, a netted pocket on the right-hand side, elasticised straps on the left-hand side, specific lighting and a pair of bag hooks.

Power and connectivity options include two USB-C sockets, a 12-volt outlet and a wireless phone charging pad in the front, another two USB-Cs in the back and a second 12V plug in the boot. So no problems with charging capacity for phones and other devices.

Maximum braked trailer towing capacity is a useful 1300kg (750kg unbraked) but we have to put a big black mark against provision of a repair/inflator kit rather than a physical spare. Not good enough for the Aussie market. 

The Corolla is a small car and that is evident inside. You might bump elbows with your front passenger, but I have no problem with the front leg or headroom.

Those cloth seats might be drab but boy they are comfy, and the fronts have loads of side bolstering. 

The steering wheel has typically clear controls and looks and feels nice. 

As a more, shall we say seasoned model in the segment, the Corolla still has buttons on the dash for things like air con, but not too many. That bulbous centre stack and the centre console, however, could be better designed for the space.

As it is, the wireless charging pad is hidden under it at the far end of the console. It’s a bit fiddly to get your phone in and out. This is also where one of the USB-C ports lives.

The other one is in the central storage bin which is quite small, but also houses a 12-volt outlet. There are no other places to store things because of the rounded shape of the console, which also features a couple of narrow cupholders.

OurCarsGuide bottle had to be squeezed into the door storage cavity - only narrow, short vessels will fit properly.

That 8.0-inch multimedia screen is very easy to navigate, with logical menus and icons. However, it’s almost too basic, which is not helped by the all-white background. It could be a more engaging set-up but it’s also very hard to fault the functionality. Our Apple CarPlay maintained its connection the whole time with the car, too.

Space is quite tight in the rear, although I have enough headroom for my 184cm frame. Legroom is just okay behind my driving position. There’s more space in the back of a Hyundai i30. It’s also dark because of smallish rear windows and thick C-pillars. 

The rear seat backrest is quite upright, but, like the front seats, well cushioned.

Amenities are just average back there - there’s a weird cupholder high on the door, only a passenger side map pocket, no rear air vents and no USB ports, although you could easily use the one housed in the front central bin. There’s a rear fold-down armrest with two cupholders.

The rear seats split and fold 60/40 and they fold flat making for a better loading space.

The good news is the SX (and the base Ascent Sport) come standard with a temporary spare wheel, which is great news for a hybrid model. The bad news is, that reduces boot space to a paltry 217 litres. 

That’s off the pace of all of its key hatchback rivals, including the Mazda3 which has its own cargo concerns at 295L, and the Hyundai i30 with 395L.

The Corolla ZR hatch has more space at 333L but you only get a tyre repair kit instead of a temporary spare. 

If you’re dead set on a Corolla but need more cargo space, consider the smart looking sedan that has 470 litres.

Toyota dropped all exclusively internal combustion engine versions of passenger car models and car-based SUVs last year so the Corolla is now hybrid-only.

The grade we tested is the SX five-door hatchback which is priced from $35,260, before on-road costs. Interestingly, the sedan version, which has a much bigger boot, is $340 cheaper.

The SX sits in the middle of the Corolla range with the Ascent Sport the most affordable (from $32,110) and the ZR the priciest before you get to the fire-breathing GR Corolla hot hatch.

Direct rivals at this approximate price point include the Hyundai i30 N Line ($36,000 BOC), Mazda3 G20 Touring ($37,110), Subaru Impreza 2.0R ($35,490) and the Kia K4 Sport ($35,190), although that is sedan only for now.

You get 16-inch alloy wheels, cloth bucket seats, a synthetic leather steering wheel, auto-dimming rear view mirror, rain-sensing wipers, rear privacy glass, keyless entry and start, dual-zone climate control, USB-C ports, a wireless device charging pad, six-speaker audio, an 8.0-inch colour multimedia display with sat-nav, digital radio, Bluetooth, voice assistant and wireless Apple CarPlay and Android Auto. 

The standard features list could be described as adequate without being overly generous for the price. A head-up display (standard in the ZR) would be nice.

The Peugeot 408 Hybrid is powered by a 1.2-litre, turbo-petrol, three-cylinder engine producing 100kW at 5500rpm and 230Nm at 1750rpm.

This compact, all-alloy, direct-injection unit works in concert with a single 15.6kW/51Nm 48-volt electric motor integrated into the six-speed dual-clutch auto transmission and energised by a 0.9kWh lithium-ion battery.

Drive goes to the front wheels only and Peugeot claims a 0-100kmh sprint time of 9.4 seconds.

Since Toyota dropped the petrol engine from the Corolla range, it’s a hybrid-only affair.

The powerplant is a 1.8-litre naturally aspirated petrol engine paired with Toyota’s fifth-generation hybrid system that incorporates a lithium-ion battery, which is lighter yet more powerful since the 2022 update.

The Corolla drives the front wheels exclusively via a continuously variable transmission (CVT).

It’s not the punchiest engine and could do with more poke, but Toyota does do hybrids well. 

The 408 Hybrid’s official fuel consumption figure for the combined (urban/extra-urban) cycle is 4.5L/100km, the 1.2L turbo triple emitting 102g/km of CO2 in the process.

And it’s important to point out those official (ADR 81/02) numbers for the 408’s consumption and emissions are better than any of the direct competitors we’ve called out in the ‘Price & Features’ section above. 

Over a week of mainly city and suburban running with some freeway sections thrown in, we recorded an on-test average of 6.0L/100km. Impressive for a mid-size crossover weighing in at a bit over 1.4 tonnes.

Brim the 52-litre tank with minimum 95 RON premium fuel (ethanol blends not recommended) and using our real-world figure you can expect a handy driving range in excess of 860km.

According to Toyota the official fuel-use figure for the Corolla hybrid hatch is 4.0-litres per 100 kilometres and CO2 emissions sit at 90g/km.

While the trip computer said 4.8L/100km at the end of our week, my own fuel consumption calculation came to 5.8L.

You will only need 91 RON 'standard' petrol to fill up the Corolla.

Even with the assistance of an electric motor in the transmission and a turbo on the engine, a 1.2-litre, petrol three-cylinder powering a more than 1.4-tonne five-seat car is always going to be an interesting equation.

And in practice, although the small triple’s peak torque (230Nm) is available from just 1750rpm it lacks the smoothness of larger capacity mild- and full-hybrid combinations. Especially at slower speeds, the powertrain feels relatively edgy and agitated.

Outright acceleration is fine (claimed 0-100km/h acceleration is 9.4sec) with decent mid-range pulling power for confident overtaking or decisive lane changing (a 15.6kW/51Nm boost from the motor playing its part) and the dual-clutch auto is a more polished example of what can be a fractious device. 

But engineering and tuning for maximum fuel-efficiency has an impact on driveability. For example, we noticed the air-conditioning system’s output softened at standstill, which led to some mild window fogging in stop-start traffic on a particularly humid morning. Haven’t seen that for a while. 

The strut front, torsion beam rear suspension delivers a compliant ride and responsive handling in classic Peugeot fashion. The steering in particular points accurately and provides good road feel. 

We’ve covered the intricacies of the i-Cockpit instrument and steering wheel configuration in the Design section as its shortcomings (for me, anyway) are more ergonomic than dynamic.  

The car is relatively quiet, thanks in part to sound-dampening acoustic glass and the Michelin e.Primacy tyres (205/55) which also grip persistently if you decide to slice through your favourite set of corners. Push the engine harder and it’s revvy note and exhaust rasp will start to make their presence felt. 

Regenerative braking is helpful and the physical brakes (ventilated discs and the front and solid rotors at the rear) are nice and progressive.

The front seats are firmer than the Peugeot norm but remain comfy enough and they provide enough side support to keep you well located. 

Despite the swoopy fastback design, all-around vision is surprisingly good and an overall length under 4.7m, an acceptable 11.2m turning circle, a clear reversing camera and a 360-degree camera view make parking straightforward. 

Most generations of Corollas have been solid, dependable and occasionally, even fun to drive. 

My first car was a Holden Nova GS hatchback, which was a rebadged version of the seventh-generation Corolla. I loved that car. It was zippy, fun and super economical.

The same principles generally apply to the current-gen Corolla. Thankfully, Toyota’s former CEO, Akio Toyoda, insisted all models from the Camry to the Kluger needed to be injected with more fun. And he succeeded with the Corolla. So much so that they've spun off a wild GR performance hot hatch version.

The Corolla sits low to the ground and it just feels much more connected to the road than a small SUV can. Even in mid-range SX guise, the Corolla can hug a corner and there is ample grip to ensure a fun drive on your favourite winding road.

Sure, the hybrid powertrain might not set your heart racing, but it is quick enough from a standing start and it lacks the lag of some of its turbocharged contemporaries. There’s also plenty of poke on tap for a small car when overtaking.

Even though it has a sporting edge to how it handles, the Corolla SX has been tuned for comfort first and foremost and this is another area it excels. The damper set-up ensures the Corolla soaks up speed bumps, nasty potholes and whatever else our shoddy roads can throw at it. At no point in my seven days with the Corolla did I complain about a harsh bump or thud.

Steering has a mechanical feel but it is still sharp, adding to the ‘chuckable’ vibe of this hatchback.

The powertrain can be noisy when pushed and combined with a CVT auto it’s the nicest sounding engine out there. Also, the transition from electric to petrol power isn’t particularly smooth. Other carmaker’s hybrid offerings - like Honda for example - are close to seamless. 

Some road noise gets into the cabin but it’s no deal breaker.

The Corolla is currently unrated by crash safety watchdog ANCAP. It did achieve a maximum five-star rating back in 2018 but that expired at the end of last year.

Safety features are largely standard across all grades and the SX comes with auto emergency braking (AEB) with pedestrian and daytime cyclist detection, lane departure alert with steering assist, speed sign recognition, 'Lane Trace Assist', adaptive cruise control, a blind spot monitor with safe exit assist, a rear cross-traffic alert, reversing camera and front and rear parking sensors and a rear occupant alert.

It doesn’t have a driver attention alert, and it’s all the better for it.

The lane keeping aid is well calibrated and subtle in its interventions, but the adaptive cruise let the speed creep several kilometres over the set speed on several occasions. 

Peugeot covers the 408 with a five-year/unlimited kilometre warranty, which is perilously close to sub-par in 2026 with an increasing number of brands at seven, eight and up to 10 years conditional. The battery warranty at eight years/160,000km matches the market.

Roadside assistance is included for five years, service is recommended every 12 months/15,000km and pre-paid servicing is offered across three-, four- or five-year plans, with the latter at $2070.

That’s a not insubstantial average of $414 per workshop visit, which Peugeot says will save you $893 compared to pay-as-you-go over the five years.

For reference, a Toyota RAV Hybrid service for any of the first five years is $260, although pricing steps up after that period.

Peugeot has a well established network of 31 dealers mainly covering major cities and key rural areas, primarily on the east coast. Currently, no presence in Tassie or the Northern Territory, while Perth and Adelaide are the only representation in WA and SA. 

The Corolla is covered by Toyota’s five-year/unlimited kilometre warranty, which, given Kia, MG, GWM, Jaecoo and more have longer terms (not to mention Nissan and Mitsubishi’s conditional 10-year terms) is now officially trailing its competitors.

However, the capped-price servicing plan of up to five years costs just $250 for each service, which is incredibly competitive. The service schedule is every 12 months or 15,000km, whichever occurs first.