Peugeot 408 vs Toyota GR 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 GR Corolla had a lot to live up to before, given the likes of the GR Yaris and GR86 fit their briefs so well.

Now, with a little more daily useability and a little more performance, the GR Corolla is even better at both sides of its Jekyl and Hyde personality.

Note: CarsGuide attended this event as a guest of the manufacturer, with accommodation and meals provided.

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.

The Corolla already looks more sporting than most hatchbacks even before the GR treatment, but a few tweaks up front, some wider wheel arches and a third exhaust exit at the back have this thing looking almost ready for a rallycross.

The only downside to that is the changes are relatively minor from some angles. If you weren’t aware of the GR version, you'd need to see the GR Corolla from the front or spot that exhaust to know something was up.

The update has, however, ushered in a change at the front bumper, where the air intakes have been adjusted for improved airflow “to the radiator, intercooler, brake ducts, sub radiator and automatic transmission fluid cooler”

In part, this was necessary to help cool the new automatic gearbox, though it does generally help with overall cooling.

While the GR Corolla looks the part, there’s more function to it. The air that passes in through the side intakes at the front is vented to a duct in the wheel arch that also cools the brakes.

It’s the same as the GR Yaris sibling in terms of the philosophy behind aerodynamics and cooling in many ways, though much of the Yaris is bespoke, where on the Corolla, parts have been attached to the standard body.

Like the outside, the inside of the GR Corolla is mostly the same bones as its non-hot-hatch relatives, but the aforementioned sports seats, leather trim and aluminium pedals are all fairly strong hints this isn’t quite ‘hire car spec’.

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. 

As far as hatchbacks to build a daily-useable hot hatch upon go, the Corolla is a relatively solid starting point in terms of ergonomics.

Physical buttons and controls for things like climate are within reach for most functions of the car, though the multimedia touchscreen itself isn’t the most up-to-date.

The seats are comfortable but hold you firmly in place, and the steering wheel, pedals, and shifter are all in the correct positions for engaging driving - particularly important in the manual version.

The storage space is where the GR Corolla disappoints a little. There’s door card space for a water bottle, cupholders, the wireless device charger, but not really anywhere for larger items.

Behind the front row, adults will find themselves a little cramped in terms of kneeroom, while dark interior materials make the second row feel poorly lit.

Further back in the Corolla is the 213-litre boot, which is pretty small even for a hatchback, although Toyota lists a maximum 503 litres with the seats folded down.

Under the boot floor is a tyre repair kit, rather than a spare tyre. Keep that in mind if undertaking a road trip.

The 2025 Toyota GR Corolla comes in just one grade now, the highly-speced GTS, which starts from $67,990 plus on-road costs for the six-speed manual, but it's now available with an eight-speed automatic for $70,490.

Sounds like a lot for a Corolla, and it’s a little more than the $64,190 asking price the GTS manual wore before, but compare it to the highly-regarded Honda Civic Type R ($74,100) or the do-it-all VW Golf R ($70,590) and it lines up.

While the GTS has plenty of features for the price, they’re not all focused on the comfort of the interior.

For example, the synthetic leather and suede sports seats are manually adjustable, even though they are heated.

The 8.0-inch multimedia touchscreen is similar to that in the standard Corolla, too, plus dual-zone climate, USB-C ports, the wireless phone charger and JBL Audio system are all expected features of a hatchback at more than $60,000.

The GR Corolla does however gain heating for the leather-wrapped sports steering wheel, plus leather trim for the parking brake and shifter too. It also scores aluminium pedals.

There’s a lot more under the skin when it comes to the GR, some of which is visible via controls in the cabin, but we’ll come to that.

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.

The GR Corolla’s 1.6-litre three-cylinder turbocharged petrol engine is now a little torquier than before, with outputs now 221kW (at 6500rpm) and 400Nm (between 3250 and 4600rpm) thanks to an extra 30Nm.

The G16E-GTS engine can now drive the Corolla’s four wheels through a choice of gearboxes, either the existing six-speed manual or an eight-speed torque converter automatic.

As well as the usual drive modes, Eco, Normal and Sport, the Corolla’s GR-Four all-wheel-drive system can split the torque to the front or rear wheels via its limited-slip diffs.

Normal, Track and Gravel modes can distribute drive either 60:40 front/rear in Normal, 53:47 in Gravel, or variably depending on conditions and need for acceleration in Track.

Toyota hasn't provided a 0-100km/h time for the 2025 GR Corolla in either variant, but the auto should knock it over in under five seconds, with the manual taking a little longer.

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.

Toyota’s claimed fuel consumption for the GR Corolla with a manual gearbox hasn't changed from the previous 8.4L/100km, which isn’t bad for a sports car.

With the auto, Toyota says it burns through the fuel faster at a rate of 9.5L/100km.

In either case, the Corolla’s 50-litre fuel tank needs to be filled with premium 98 RON petrol, and theoretically could provide more than 500km of driving if conditions and your driving style are both perfect for efficiency.

Chances are, however, you’ll feel the need to put your right foot down a little harder than they did during WLTP testing, if for no other reason than to hear the turbo flutter when you lift off.

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. 

The GR Corolla isn’t as engaging to drive as the GR Yaris, it’s not as honed as one particular rival, the Honda Civic Type R, and it’s not as ‘nice’ as the Golf R.

But the GR Corolla is still an excellent car to drive, and it’s better for its update. In fact, the two major gripes I had with the pre-facelift car have been addressed.

I was in a unique position to be able to compare the old and new versions of the GR Corolla as I drove a MY 2024 version a week prior to the media launch for the 2025 model.

The first and probably biggest issue I had was that the Corolla’s suspension seemed like it must have been rather stiff and the body bracing quite rigid for a car riding on 19-inch wheels to let that much road noise and that many harsh bumps into the cabin.

Though it wasn’t mentioned before the on-road drive loop, the car felt more compliant without sacrificing ability and seemed much more suited to daily duties.

Toyota’s product team confirmed there had been tweaks made to the rear suspension geometry and that I wasn’t just imagining it.

The second issue is more for the sake of passengers who may be less agreeable to the three-pot thrum resonating along the exhaust underfloor.

Toyota has solved this by putting a slight mute on the pipes in the Eco drive mode, so the car is now just ‘a bit’ lairy rather than full boy racer.

Generally, it’s hard not to compare the GR Corolla to the smaller (but original) GR hatch, the Yaris. Especially having driven them back-to-back at the media launch.

Without leaning too much on that, I will say that while the Yaris feels like a rally car that's been modified to be road-legal, the Corolla feels more like a road car that was tweaked for rallying.

The Corolla stops just short of being too ‘raw’ for everyday use in most aspects, but it’s still very capable when it comes to driving fast. 

Like its suspension, the steering feel is dialled in for feedback without being too rough, and allows you to corner accurately without feeling like you need to second-guess or adjust inputs.

When it comes to handling, it doesn’t feel like the Corolla is entirely leaning on the Yokohama Advan tyres for grip, as it feels tied-down and doesn’t pitch and roll through corners.

The duality of the GR Corolla is helped by its drive mode and differential settings and even on track can help you lean into your own driving style.

While the rear-biased 30:70 setting previously made for a slightly tail-happy hot hatch, the new variable Track setting does a fabulous job of keeping the drive where it needs to be, though it turns out it’s also rather handy for sliding the Corolla around a wet skid pan.

Another neat trick is the GR’s handbrake, same as the Yaris, which can disconnect the rear diff when engaged so you don’t need to dip the clutch pedal in the manual version when indulging in handbrake turns.

It will set you back to 2WD mode when the drivetrain overheats, however, or at least when its sensors suspect the drivetrain has overheated - something that only happened after a lot of handbrake turning and spinning wheels as the hatchback slid sideways.

The Corolla’s brakes are ventilated 356mm front and 297mm rear discs, and doesn't lose stopping power even after plenty of tight, twisting road driving where the brakes and the sticky Yokohama Advan tyres copped a workout.

The new auto transmission is also a delight. It's calm during normal driving but snappy with shifts in Sport mode and set to manual gear selection. It won’t really cooperate on a rapid drive of its own accord.

The only criticism of the auto gearbox (aside from being less engaging than the manual, but that’s your own choice) is that the shift paddles behind the wheel feel a little plasticky, but I’m nitpicking at this point.

The Corolla’s not lacking in safety kit, with a healthy list of passive and active features as well as a series of seven airbags and three ISOFIX points along the rear seats.

ANCAP tested the non-GR Corolla in 2018 and awarded it five stars, though that score is now outdated. It’s not clear if the car’s updated tech would manage five stars again, though the car is clearly structurally sound.

Aside from the usual expectations like auto emergency braking (AEB), a blind spot monitor, parking sensors front and rear plus a decent reversing camera, the GR Corolla also has rear cross-traffic alert and Toyota’s ‘Safety Sense’ suite of active kit.

That includes a pre-collision safety system with pedestrian detection and cyclist detection in daylight, active cruise, intersection assist, emergency steering assist, lane departure and lane-trace assist, road sign detection for speed limits and auto high beam.

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. 

Toyota offers a five-year/unlimited kilometre warranty plus an extra two-year warranty on the GR Corolla’s engine and driveline.

There’s also a capped price on the first three years of servicing for the GR Corolla at $310 per service.

The downside to the servicing arrangement is that intervals are six months or 10,000km, whichever comes first. That's more regular than a usual schedule and it means potentially pricier servicing for the seventh visit onwards.