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.
Mercedes-Benz has the C-Class, BMW has the 3 Series, Audi has the A4 and Jaguar has the one people in Australia seem to forget – the XE.
Yep, the default setting we seem to have when it comes to buying a prestige car is as strong as buying the same brand of milk every week.
There’s a decent choice of milk, but it can sometimes seem that there are only three brands and we tend to zero in on the same one again and again. Same with prestige cars.
But all milk is the same, I hear you say. And I’m inclined to agree, and that’s the difference, cars vary greatly despite them having the same purpose.
The latest version of Jaguar XE has arrived in Australia and while it’s very similar in size and shape to its German rivals there are some big differences, and some compelling reasons to add it to your shopping list.
I promise, there are no more mentions of milk.
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.
The Jaguar XE is a dynamic, prestige mid-sized premium sedan, for those who are more concerned with engaging driving than cargo space and rear legroom.
The sweet spot in the range is the entry R-Dynamic SE. Buy that one and option the handling pack, and you'll still come in under the costs of the HSE.
Bang for you buck is the XE’s strong point and you won’t find more horsepower at this price in rivals such as BMW 3 Series, Benz’s C-Class or the Audi A4.
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’.
This freshen up of the XE sees a sharper, wider look for the mid-sized sedan with sleeker headlights and tail-lights, plus redesigned front and rear bumpers.
From front-on the XE looks low, broad and planted, a black mesh grille and the way it’s flanked by much larger air intakes is tough, and the signature Jaguar long bonnet curving down towards it looks magnificent.
The rear of the car has benefited greatly, too. Gone are those overly simple tail-lights, replaced by more refined units with a strong resemblance to the F-Type's.
How much smaller is the XE than its big sister the XF? Well, here are the dimensions. The XE is a mid-sized car at 4678mm long (276mm shorter than the XF), 1416mm tall (41mm shorter in height) and 13mm narrower at 2075mm wide (including the mirrors).
The Mercedes-Benz C-Class is almost the same length at 4686mm, while the BMW 3 Series is 31mm longer.
The XE’s cabin has been updated, too. There’s the new steering wheel which has a more minimalist and cleaner design than the previous tiller, the rotary gear shifter has been replaced with an upright trigger-grip device (another functional improvement), and there’s the 12.3-inch digital instrument cluster.
New materials and trims are used throughout the interior. Both grades have premium carpet mats, and aluminium trim around the centre console.
In the SE four types of two-tone leather upholstery can be specified as non-cost options, while another four which are $1170 options in the base grade are available free in the HSE.
The standard cabins of both grades feel luxurious and premium.
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.
Mid-sized sedans have a tough job on their hands when it comes to practicality – they need to be small enough to park and pilot in the city but big enough to carry at least four adults comfortably along with their luggage.
I’m 191cm tall and while space up front for me is plentiful, space behind my diving position is limited. Headroom in the second row is getting tight, too.
The small rear doors also made entry and exit a bit of a challenge for me.
Boot space is also not the best in the class at 410 litres. I’m being kind. See, the Mercedes-Benz C-Class has a cargo capacity of 434 litres, while the BMW 3 Series and Audi A4 have 480 litres volumes.
Up front you’ll find a USB and a 12-volt outlet, but if you want the wireless charger for your iPhone or Android device you’ll need to option it for $180.
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.
There are two members of the Jaguar XE family: the R-Dynamic SE which lists for $65,670, before on-road costs, and the R-Dynamic HSE for $71,940. Both have the same engine, but the HSE has more in the way of standard features.
Coming standard on both cars is a 10.0-inch screen with Apple CarPlay and Android Auto, LED headlights with auto high beam and direction indicators, metal treadplates with R-Dynamic branding, dual-zone climate control, ambient lighting, digital radio, sat nav, proximity key with push button ignition, reversing camera, Bluetooth connectivity and power front seats.
The R-Dynamic HSE grade adds more standard features such as a second touchscreen below the 10.0-inch display for climate control, swaps the 125W six-speaker stereo in the SE for an 11-speaker 380W Meridian system, also adding adaptive cruise control, and an electrically adjustable steering column.
The only other difference is that the SE has 18-inch alloy wheels while the HSE has 19-inch rims.
It’s not incredibly good value as far as standard features go and you’ll have to option privacy glass, wireless charging, the head-up display and a 360-degree camera on both grades.
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.
There’s one engine for both the R-Dynamic SE and R-Dynamic HSE – a 2.0-litre turbo-petrol four cylinder making 221kW/400Nm. Drive is sent to the rear wheels via an eight-speed automatic transmission.
The four-cylinder felt strong and all that torque arrives low in the rev range (1500rpm) for good off-the-line acceleration. The transmission is also excellent, shifting smoothly and decisively.
It’s a shame the V6 isn’t offered anymore, but 221kW is a lot more power than you’ll get for this money in a BMW 3 Series or Mercedes-Benz C-Class
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.
Jaguar says that the XE will use 6.9L/100km of premium unleaded petrol when driven on a combination of open and urban roads.
After my time with it the trip computer was reporting an average of 8.7L/100km. Not bad considering the test drive would have been thirsty work for the four-cylinder turbo engine.
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 launch took place on twisty country roads snaking away from the coast in Northern NSW, but I was only a few corners in before it became darn clear the R-Dynamic HSE was talented dynamically. Impressively so.
The HSE I tested was fitted with the $2090 'Dynamic Handling Pack', which adds bigger front brakes (350mm), adaptive dampers and configurable settings for throttle, transmission, chassis and steering.
Steering which felt a tad heavy in town became the XE's secret weapon as the roads curled through the hills. The confidence the steering, delivering great feedback and accuracy, gives the driver can’t be overstated.
This combined with the XE’s excellent handling and powerful four-cylinder engine makes it a clear dynamic standout among its competitors.
A comfortable ride even, on potholed roads, but flat handling regardless of how hard it was pushed through corners amazed me.
Sure, optional adaptive dampers were fitted to our test car, but considering the work out they were getting without skipping a beat, their response was impressive.
Following this I dropped into the seat of the red R-Dynamic SE you can see in the images. While this wasn’t fitted with the handling package the HSE had, the only real difference I could feel was in the comfort – the adaptive dampers were able to produce a more composed and cushioned ride.
Handling, however, felt sharp, sure and the steering gave me the same confidence I experienced in the HSE.
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 Jaguar XE was given the maximum five-star ANCAP rating when it was tested in 2015. Both the R-Dynamic SE and R-Dynamic HSE come with AEB, lane keeping assistance, rear cross traffic alert, traffic sign recognition and automatic parking.
The HSE adds blind spot assist which will steer you back into your lane if you’re about to change lanes on top of somebody else; and adaptive cruise control.
The lowish score is due to the need to option safety equipment – it’s becoming the norm for advanced technology to be included as standard.
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 Jaguar XE is covered by a three-year, 100,000km warranty. Servicing is condition-based (your XE will let you know when it needs a check-up) and there’s a five-year/130,000km service plan which costs $1750.
Again a low score here, but that’s because of the short warranty compared to the five-year coverage which has become an industry expectation and while there is a service plan there’s no service-by-service price guide.