What's the difference?
There’s something immensely appealing about a car that can play two roles.
An off-roader for the weekend and a school pick-up chariot Monday to Friday? How about a race car/grocery-getter combo?
The latter is what the Toyota GR Corolla wants to be, a slightly bigger and more day-to-day alternative to the first GR hot hatch, the Yaris.
Both of these cars have now been updated and are arriving in Australia now, and Toyota hopes the Corolla becomes an even better car to rival the likes of the Volkswagen Golf R.
But can it do it?
We tested Toyota’s hotted-up Corolla on road and track to see if it’s up to the task.
I think auto journalists are supposed to see vehicles a bit like parents see their children. You know, view them all as equals. No favourites. That kind of thing.
But I'm going to let you in on a tiny little secret, just between us. I liked this potent M2 before I even sat in it. And I like it just a little bit more than I love other bite-sized performance cars.
In fact, I like it more than I like bigger, more powerful, and more expensive models in the BMW M family.
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.
Proving good things still come in small packages, the pint-sized M2 remains my pick of the BMW M range. It's not the perfect daily drive, but I reckon the fun outweighs the foibles.
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’.
There have been mixed reviews of the design of the BMW M range, but I reckon this one looks pretty damn good. In fact, I've always thought this kind of hyper-aggressive styling looks better on smaller cars than it does on big ones.
And it certainly is aggressive, right? From the huge bonnet bulges to the meshed out grille and angry rear diffuser, to the staggered alloys and flared wheel arches, to the blocky rear end with its four massive exhaust exits.
But my favourite exterior item has to be the blacked-out carbon roof, which helps shrink the M2 visually, and makes the whole car look more potent.
Inside, it's plenty sporty feeling, with hard-backed sports seats, lashings of carbon-fibre-look trimmings and the bright red M buttons on the steering wheel.
It's nice, but some of the touch points – like the hard plastics on top of the doors, where, if you're like me, you rest your elbow when driving – feel less than premium.
Still, all the tech is present and accounted for, with its digital dash and huge centre screen, and there's no shortage of spaces to connect or charge your phone.
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 M2 pocket rocket measures just over 4.5m in length, just under 1.9m in width, and just over 1.4m in height, and it rides on a 2747mm wheelbase. That makes it longer, wider and lower than the model it replaces.
Remember that 'lower' bit, as it will come up again in a moment.
Up front, you don't feel cramped, and there's the requisite cupholders, door pockets and hiding holes, as well as wireless device charging and USB connections.
But remember, this is a two-door, four-seat affair, which cuts into the practicality a little, or a lot.
Swing open the wide front doors, and push the front seat-back forwards, and the entire chair will slide forward automatically.
It does help create more room to climb into the back, but it's still a slightly embarrassing challenge to make getting back there look anything like graceful.
Once there, it's tight. I'm 175cm and my head was firmly pressed into the roof.
You do get your own vents and temp controls, but that's about it. Even the pull-down divider only gives you access to the 390-litre boot, rather than extra cupholders.
You do get two sets of ISOFIX attachment points, though, and let's be honest – if you're buying this to make Bunnings runs, you've probably got it wrong.
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.
First, the bad news. The M2 has only been getting more and more expensive over the years, and this new-generation model continues that charge.
Fun fact: When we first tested this model way back in 2016, you could get the Pure grade for less than $90K with a manual transmission.
Or you could spend just under $100K for the full-fruit version. This one, though, lists at $121,700, before on-road costs.
So, a little less bang for buck, but there's still a whole lot of bang on offer here.
You'll find staggered 19- and 20-inch lightweight alloys, while standard performance kit includes an 'Active M Differential', 'Adaptive M Suspension', 'M Compound Brakes' (with blue calipers), 'M Sport Seats' up front and, for the first time, a lightweight 'M Carbon' roof.
Elsewhere, there's adaptive LED headlights, a 12.3-inch instrument display and a 14.9-inch multimedia screen, a head-up display, a Harman Kardon 'Surround Sound' audio system and Android Auto and Apple CarPlay connectivity.
You'll sit on leather seats that adjust electrically and are heated up front. There's three-zone climate control, along with a heated steering wheel, wireless device charging and ambient interior lighting.
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.
Besides, this is what we're really here for, isn't it? The M2 gets the 'M TwinPower' 3.0-litre twin-turbo inline-six engine, producing a sizeable 338kW and 550Nm, sending that power to the rear wheels via an eight-speed auto or six-speed manual.
BMW says this engine is very, very close to the engine that powers the M3 and M4, and says it will rocket the M2 from 0-100km/h in 4.1 seconds, and to 200km/h in either 13.5 seconds in the automatic, or 14.3 seconds in the manual.
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.
A small fly in the ointment is fuel use, with the M2 said to use 9.7L/100km on the combined cycle. It also drinks 98 RON premium, and is home to a 52-litre fuel tank. Your theoretical driving range is around 540km.
Now, be warned, you'll be bored stiff if you drive it in the way that's required to get it that low. When we were being gentle, we were somewhere between 10.5 and 11.5 litres per hundred kilometres.
Emissions are pegged a 220g/km of C02.
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.
Let's be totally up front here: the BMW M2 isn't the most comfortable vehicle to live with. In fact, I recently climbed out of the M3 Touring, and found that to be more comfortable on broken city streets.
The M2 is fitted with adaptive suspension, but even in its most comfortable settings it can feel rough, bumpy and jarring on bad roads (of which Australia has lots), and unless you're gentle with the accelerator, it can feel a little jumpy when first taking off – a by-product of its prodigious power.
Now, let's be totally up front again: I don't care. The M2 is fun, plain and simple, and for mine, the above is a fair price to pay for something that brings so much joy.
The steering is lovely, the power immediate and the soundtrack intoxicating, and it's the kind of car that's fun no matter where, how far or how fast you drive it.
In fact, fun seems to be the very centre of the M2 proposition, which definitely doesn't take itself too seriously.
For evidence, look no further than the 'M Drift Analyser', buried in a hopelessly busy multimedia system that will have you praising the CarPlay and Android Auto gods.
It will rate your best drift out of four stars, measure it for distance, and basically give you a pat on the back for doing your best hooligan impression (not on a public road, of course).
Fun, then, is the order of the day here. And I bloody love it.
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.
The BMW M2 hasn't been assessed by ANCAP, but it arrives with six airbags, as well as all your usual traction and braking aids.
Elsewhere, you'll find lane change and lane departure warning, active cruise control, front and rear parking sensors, tyre pressure monitoring, and AEB with pedestrian detection.
There's also blind-spot monitoring, rear cross-traffic alert and lane centring assist, as well as a tyre-pressure monitoring system.
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.
The BMW M2 is covered by a five-year, unlimited kilometre warranty, and servicing is 'condition based', in that the vehicle will tell you what maintenance is required, and when.
You can prepay your service costs at the time of purchase for all BMW vehicles, covering the first five years of ownership, for $3480 (which means $695 per service).