What's the difference?
Thank the automotive gods cars like the GR Yaris still exist.
Not only are hot hatches the funnest way to drive, but in a world that’s obsessed with electric vehicles, these combustion-powered beasties remind us what we’ve got before it's gone.
The GR Yaris arrived in 2020 and won praise for its rally-car-for-the-road feel with Toyota’s high-performance division Gazoo Racing heavily modifying the docile Yaris hatch - while adding a bit of Corolla - to create this little monster.
In early 2025 Toyota added more power and torque, along with an automatic transmission for the GR Yaris and now a new variant has been launched - the GTS Aero Performance Package and this is what we are testing.
Sometimes a name change can make all the difference.
Google used to be called “Back Rub”. The Spice Girls started off as “Touch”. And – particularly in Germany – some premium sedans became known as “coupes”, as they struggled to stay popular against SUVs.
Case in point: what is essentially a 1 Series hatchback with a boot has been more glamorously badged the “2 Series Gran Coupe” since 2020.
Still following the sedan script with four doors, it’s BMW’s tilt at Mercedes’ booted A-Class hatch, the rakish CLA, unveiled early last decade as the Concept Style Coupe and now in its third series-production iteration – though since 2019 a more conservatively styled A-Class Sedan has also existed, that goes up against Audi’s A3 Sedan.
But we digress. Now there’s a “new” 2 Gran Coupe, coded F74, though it’s really a heavy facelift of the superseded F44. Oh, and the ‘i’ no longer exists in the badge, so (M-enhanced models aside) it’s just numbers from here on in. 218. 220. M235.
Regardless of names, does it live up to the BMW promise?
The GR Yaris GTS with the Aero Performance Package is a so wonderfully special with its brilliant engineering, mind-blowing dynamics and fun-to-drive nature. The new aero package makes an already angry beastie look furious, making it the perfect enhancement that's also functional.
The only lower marks here are for warranty, fuel use and practicality. But if there was a score for fun it'd be a 10/10.
The badge might say one thing, but the 2 Series Gran Coupe sticks to the time-honoured template of being a compact yet comparatively practical three-box, four-door sedan, complete with a big boot.
More importantly, it drives and behaves like a BMW – which means sufficient-to-strident performance depending on grade, athletic dynamics and pleasing refinement on one hand, as well as a stiff price and a hard ride on the other.
A true BMW in name and nature, then..
Note: CarsGuide attended this event as a guest of the manufacturer, with travel, accommodation and meals provided.
The GR Yaris exists so that Toyota could go racing in the World Rally Championship. As with many racing series it required Toyota to build a road-going version of their Yaris race car, also known as a homologation vehicle. It’s a good deal, they get to race, you get a race car for the road. And so the GR Yaris was born.
Wildly different from a regular five-door garden variety Yaris, the GR Yaris is a hand-built three-door hatch with a wider track, wider and lower body and the use of forged carbon and aluminium for lightweight construction.
The GR Yaris already looks very angry, but the GTS Aero Performance Pack makes it look furious. It adds a huge adjustable rear wing, fender ducts that channel air, a front spoiler lip that aids stability, a giant bonnet scoop to help release air, and rear bumper ducts to reduce drag.
The GR Yaris’s cabin was redesigned for the 2025 update and that saw the dashboard angled more to the driver much like in a race car, but it's more functional than fancy and it’s all very plain.
Still, we’re not complaining. The seats are lovely and the red stitching is a nice touch but this isn’t a Lexus. It’s supposed to favour function over form and so the design is absolutely fitting. And by function I mean dynamics and not practicality.
BMW is calling the F74 a new-generation 2 Series Gran Coupe, and there have been obvious and even profound changes throughout and underneath, including to some of the sheetmetal.
But this is not an all-new car by any stretch, with the glasshouse, doors and roof amongst many other body items carrying over from the F44.
That now remarkably Kia Cerato-esque nose ushers in new LED lighting motifs and an updated kidney grille, but whether they sit easily with the rest of the car is debatable. Redesigned tail-lights, different colours and new alloys make up the majority of the exterior changes.
Betraying the latest 2 Series Gran Coupe’s newness claims are near-identical dimensions, with that redesigned front end and bumpers contributing to a 20mm increase in the F74’s 4546mm length, while revised suspension and damper settings help account for the 25mm boost in height (to 1445mm). The BMW’s 1800mm width and 2670mm wheelbase remain the same.
There’s a higher level of newness to be found inside.
The regular Yaris is small, the GR Yaris is smaller at 3995mm end-to-end and with two fewer doors. As a tall person (I’m 1890mm end-to-end) the space on board is adequate up front with just enough knee, head and elbow room.
The GR Yaris is a four seater with the two rear seats accessed through the front doors. There’s not much room in there for adults and not even my lanky 11-year old would be happy in there. Still if you need to carry three other people, technically you can.
Cabin storage is limited to fairly large door pockets and two cupholders between the front seats. There is a little shelf carved into the dashboard which is great and a small glovebox below it.
Boot space is tiny at 174 litres but again this is a small car with other priorities.
During the media presentation at its launch, BMW described the 2 Series Gran Coupe as being almost as large as a 1990s E46 3 Series, and it is in all major dimensions except wheelbase.
Plus, being a front-drive-biased/transverse engine proposition instead of rear-wheel drive should make it roomier than the F74’s iconic ancestor.
The sense getting in is that this is certainly not too low or cramped as per a more-traditional coupe, with plenty of space for legs and shoulders, while even the optional sunroof fitted to our 218 left us with headroom to spare.
The redesigned dash is a visual and operational treat, with crisp, clear instruments, a logically presented and intuitive centre display screen offering fast and easy operation, excellent ventilation and ample storage. Full marks here.
Better still, attaining the perfect driving position is possible for most people, on brilliantly supportive front seats. This is the stuff BMW does right.
Improvement suggestions for the next update? Some people may complain about the somewhat less-than-premium feel of some of the lower-lying plastic trim; not everybody will love the swatches of colour stitching (we love it); why does the steering wheel have to be so wide-of-rim? Side and rear vision is restricted by fat pillars, rising shoulder lines and a shallow rear window; and there is quite a bit of road noise that enters the cabin at speed.
Still, even the back seat is sufficiently spacious for most users, with the sole exception of taller folk having to negotiate a sloping rear roofline. If you’re below 180cm, this should be fine. Most amenities minus overhead grab handles are also fitted.
Further back, the boot is surprisingly accommodating, with 430 litres of cargo capacity that’s enhanced by a 40:20:40 split-fold backrest, and the aperture should be big enough for bulkier loads, but the lack of a spare wheel will be bad news for many buyers. The supplied tyre-repair kit is just not good enough.
But, you know what is good enough? The engines BMW builds, that’s what.
The GR Yaris GTS Aero Performance Pack sits at the top of the model range with the six-speed manual version listing for $64,990 before on-road costs, while the automatic is $67,490. That’s $4500 more than the standard GTS without the aero pack
The aero pack significantly toughens up the look of the GR Yaris, and also improves its dynamics. So if you plan to use the GR Yaris as a track car and drive it hard and fast, the kit will help.
That's thanks to improved down force from the giant rear wing, air ducts in the fenders to improve steering under braking, a front splitter for stability, underbody cladding to maximise airflow and a bonnet scoop to help release hot air from the engine bay.
The rest of the high-performance equipment comes on the regular GTS including a Torsen limited slip differential, high performance suspension tune and 18-inch forged wheels with Michelin Pilot Sport 4S tyres.
Standard features are the same as the regular GTS and include heated GR sports front seats with suede leather upholstery, a 12.3-inch digital instrument cluster, leather-wrapped steering wheel, aluminium pedals, dual-zone climate control, proximity unlocking and push-button start.
There's also an eight-speaker, eight-inch media screen with Apple CarPlay and Android Auto, and an eight-speaker JBL sound system.
The value is actually great considering all the high-performance engineering around you in the GR Yaris, and it will save you money from being tempted to go down the aftermarket route and buy equipment that hasn't been designed for the car by the people who made the car.
There are some nice comforts, too, like the leather seats, although the media screen is small.
This depends on how much you buy into this being a sporty Gran Coupe rather than a small sedan.
From $59,900 (all prices are before on-road costs), the German-made front-wheel-drive 218 base grade is slightly cheaper than the previous 218i equivalent, yet gains more kit. It also matches the A200 Sedan and costs a bit more than the (also recently facelifted) A3 Sedan, while offering similar performance and equipment to both.
Along with a host of advanced driver-assist safety (ADAS) systems like adaptive cruise control – to be covered in more detail later on – the base 2 Series Gran Coupe comes with the M Sport styling package inside and out as standard.
You’ll also find goodies like adaptive LED headlights with auto high beams, adaptive dampers, keyless entry/start, a curved all-in-one 10.25-inch instrument display/10.7-inch centre control display using BMW’s latest OS9 system offering cloud-based navigation, an M Sport steering wheel, heated sports front seats, a head-up display, surround-view camera, wireless smartphone charger, Apple CarPlay/Android Auto, BMW Connected Drive with auto emergency call and other services, artificial leather upholstery, a 40:20:40-split backrest, an electric tailgate and 19-inch M-Sport alloy wheels.
From $62,900, the 220 ditches the 218’s 115kW 1.5-litre three-cylinder turbo petrol engine for a 150kW 2.0-litre four-pot turbo, while the 233kW M235 xDrive from $86,600 adds a lot more muscle to that 2.0-litre engine, all-wheel drive, more ADAS tech, massaging front seats, a Harmon/Kardon audio upgrade, uprated brakes, a panoramic sunroof, a heated steering wheel, rear spoiler and higher-gloss trim.
Many of those items are available with a $6700 Enhancement pack on the lower grades.
These more-or-less line up with rival premium small sedans.
Note, though, that they are expensive compared to fine mainstream C-segment alternatives costing far less, like the Subaru WRX, Toyota Corolla hybrid and Mazda3. Or Hyundai’s criminally underrated Ioniq 6 EV. Labels, eh!
Still, for some folk, the 2 Series Gran Coupe’s swoopier silhouette might make it seem like more of a rival to the sleeker CLA than a mere A200/A3 competitor, and that Benz kicks off from about $15K more than the 218. If that’s you, the BMW might be construed as a bit of a bargain.
Since we’re talking about styling, let’s take a deeper dive into the F74’s newly minted looks.
It still boggles my mind how 221kW and 400Nm is extracted from a 1.6-litre three-cylinder petrol engine but here we are. The GR Yaris has this set up with this output, along with all-wheel drive.
Thanks to lightweight materials such as forged carbon and aluminium the GR Yaris weighs nothing in car terms - just 1300kg - so acceleration from 0-100km/h is a rapid 5.1 seconds.
I’ve already detailed the juicy engineering bits the GTS Aero Package is fitted with, from the limited slip diff to the adjustable rear wing, and it’s not an exaggeration to say that not many small hatches are this gifted with this kind of genius.
Our test car has an eight-speed automatic, which is easy to drive in city traffic. However, I'd opt for the six-speed manual because if you've come this far you may as well go the whole way.
Three F74 powertrain choices are available for Australia in 2025. And none even remotely reflect what their respective badges imply on the boot.
The 218, for instance, is not powered by a 1.8-litre engine, but BMW’s long-lived B38 1.5-litre three-cylinder turbo petrol unit. Making 115kW of power at 6500rpm and 230Nm of torque between 1500rpm and 4600rpm, drive is channelled to the front wheels via a seven-speed dual-clutch transmission (7DCT).
With a kerb weight of 1420kg, the 218 has a power-to-weight ratio of 81kW per tonne, helping it achieve the 0-100km/h sprint time of 8.6 seconds, on the way to a 230km/h top speed.
Not enough? The 220 features the ubiquitous B48 2.0-litre (not a 2.2-litre) four-cylinder turbo petrol engine/7DCT combo, pumping out 150kW at 6500rpm and 300Nm from 1450-4500rpm. Tipping the scales at 1525kg for 98.4kW/tonne, its 0-100km/h time is 7.3s and top speed is 250km/h.
Want more? Stretching to the M235 xDrive sadly doesn’t mean a 3.5-litre in-line six, but a modified B48 2.0L/7DCT duo, delivering 233kW at 6500rpm and 400Nm from 2000-4500rpm to all four wheels. Result? Weighing just 50kg more than the 220, it boasts a heady 148kW/tonne, for a 0-100km/h of just 4.9s and a 250km/h v-max.
As with all of the UKL2/FAAR transverse-engine front-to-AWD platform models from non-electric Minis through to sub-X3/3 Series BMWs, you’ll find MacPherson-style struts up front and a multi-link independent rear end out back.
If you’re reading this outside of Australia, you may notice that none of the current F74 models offer mild-hybrid tech, in contrast to their European counterparts. And don’t go expecting any manual gearboxes either, unfortunately.
The GR Yaris is a hungry beastie that eats through its 50L petrol tank fairly quickly and then wants more. Toyota says you should see 9.1L/100km of 98 RON used in the automatic and 8.2L/100km with the manual over a combination of driving conditions.
Stop-start city driving in traffic saw fuel use increase dramatically to 13.0L/100km in the auto. According to our car's trip computer, my own testing used an average of 14.5L/100km after mainly suburban driving.
OK, so is the 2 Series Gran Coupe cheap to run?
BMW reckons the 218 and 220 will average 6.3 and 6.7 litres per 100km, which means combined average carbon dioxide emissions ratings of 143 and 152 grams/km respectively.
Filling the 49L fuel tank with 95 RON premium unleaded, that translates to around 775km in the 218, and 730km in the 220 between refills.
Predictably, the M235 xDrive uses more, at 7.7L/100km for a CO2 rating of 176g/km. That’s a distance of about 635km.
Over our launch run, which took us from Sydney’s Circular Quay to Wollongong, the 218’s trip meter was reading in the high 8s and about 10 for the M235.
There’s been a multitude of electric cars through the test garage over the past six months and the GR Yaris is like a diamond found in a tub of Lego when it comes to driving.
So much sound. The three cylinder snarls on start up sending vibrations into the cockpit and up through the steering wheel, the transmission can be heard engaging gears, the big brakes creak as they’re released. And we’re hardly even moving yet. There’s so much theatre. It’s all real and I love it!
I even love that in the first 10 minutes of driving, a message appears on the instrument cluster asking that excessive acceleration be avoided while the engine is cool. You don’t get that beautiful inconvenience in an electric car.
But when you can excessively accelerate (on a race track of course, right?) it's wonderful and it's loud. Lift off, and the wastegate lets out a little "weeee!" in excitement.
I don't need to tell you that the GR Yaris handles better than just about anything in this price range and while the ride is firm and speed bumps feel like you’ve hit a gutter I still drove the GR Yaris every day, even to do the school run, because it is so much fun. Meanwhile my hybrid long0term test car looked lonely in the driveaway all week...
Being an automatic makes it easy to drive in traffic and the small size makes finding parking spots quick and simple.
Visibility is good, steering is excellent, the seats are big enough to accommodate me but snug enough to offer good lateral support, too.
Earlier, we mentioned that the 2 Series Gran Coupe is way more expensive than fine alternative sedans like the Mazda3 and Toyota Corolla.
And while that still stands, there is a remarkable solidity and refinement difference between those and the BMW that helps justify the premium. And nowhere is this more evident than from behind the wheel.
Sat on body-hugging seats and clutching that (too chunky) steering wheel, there is a sense of sporty occasion, backed up by quality trim and an aroma of expensiveness.
For a turbo three-cylinder car weighing 1.5 tonnes, the 218 does a lot with a little, offering spirited off-the-line acceleration and pleasingly lag-free throttle responses at lower speeds. You’d never call it fast, but it is a quick point-to-point urban mover. Only the unavoidable three-pot thrum lets you know you’re in the lowest mechanical spec. And, also, the delay at freeway speeds in building momentum when overtaking.
Which is why, for less than five per cent extra, the 220 with the 2.0-litre four-cylinder turbo would probably make a better buy. Sadly, that isn’t on sale yet in Australia, so we missed out on driving it during the Sydney launch. But in the scores of other BMWs and Minis we’ve tested this in, it’s a cracking little powertrain.
Whether the big leap (nearly $25K worth) to the M235 is worth it depends on how fast you drive and how much you value/need AWD. This is a terrifically muscular machine, since it provides rapid performance via a tidal wave of power, even with the lightest flex of your right foot. On-point and on-brand, this fun and fiery flagship possesses the grand-touring spirit that the rakish design and tech-heavy engineering promise.
To that end, in both the 218 and M235, the steering makes the driver feel connected to the car, resulting in precise and controlled handling. The driver-assist safety tech is beautifully calibrated and nuanced in its intervention, and the brakes are second-to-none.
What is also on-topic for a BMW is the firm suspension, despite the adaptive dampers fitted as standard equipment.
It isn’t stiff or overly uncomfortable, but bumps are certainly always felt, and they’re accompanied by fairly constant road-noise drone over some surfaces.
As such, you’re constantly reminded that dynamic athleticism is the priority here, rather than sumptuous comfort. We’ve experienced much worse from BMW, but a magic-carpet ride isn’t what’s in store for the 2 Series Gran Coupe owner.
So, what’s our verdict then? The 218 is a rorty little tryer that never fails to involve the driver, while the M235 ushers in an elevated level of acceleration, grunt and grip. We suspect that the 220 will be the Goldilocks-zone happy medium.
For (largely) better as well as for (occasionally) worse, these drive and feel like a BMW should.
The GR Yaris has not been crash tested by ANCAP and the score for the regular Yaris can't be applied to the GR version.
Still the GR Yaris comes equipped with an array of advanced safety tech such as auto emergency braking (AEB), lane keeping assistance and a blind spot warning.
There are six airbags, two child seat ISOFIX points and two top tether anchor mounts in the rear row.
The latest, F74 2 Series Gran Coupe scores neither an ANCAP nor EuroNCAP rating at this stage, but its F44 predecessor managed a five-star result back in 2019.
For the latest version, BMW is highlighting an elevated level of advanced driver-assist safety (ADAS), including lane-change/departure alerts, forward collision warning and automatic emergency braking tech that detects vulnerable road users like pedestrians and cyclists, rear cross-traffic warning, exit warning, adaptive cruise-control with full stop/go functionality, blind-spot monitor and traffic-sign speed-limit alerts.
No information on AEB operating parameters is available as yet for the F74, but the earlier series’ low-speed AEB worked from 8km/h to 85km/h and inter-urban AEB kicked in between 5-80km/h, while the lane-support systems functioned from 70-210km/h.
Tyre-pressure warning, 360-degree surround-view cameras and six airbags are also included, along with Parking Assistant Plus that brings sensors, automatic parking, a reverse assistant that automatically retraces the last 50 metres travelled and a drive recorder.
Note that the 218 misses out on the 220/M235 grades’ ADAS-related crossroads warning, evasion assistant tech, lane-keeping assist with active side-collision prevention and front as well as rear cross-traffic warning. These are available in the aforementioned Enhancement Pack, but at this lofty price point, they should be standard.
Finally, there are ISOFIX child-seat anchorages in the rear-seat outboard positions, along with a trio of child-seat tether latches.
The GR Yaris is covered by Toyota's five-year/unlimited-kilometre warranty which is lacking compared to many other mainstream manufacturers’ seven-year-plus warranties. The good news is that the engine and driveline is covered by an extra two-year warranty.
Servicing is capped at about $300 for the first six visits, although services are six months apart which means that after three years you’ll run out of capped-price servicing.
Still, Toyota’s reputation for reliability does provide some peace of mind.
Here, however, is where BMW can do a bit better.
While the five-year/unlimited-kilometre warranty is where most premium brands are, it falls short of several Asian alternatives. Roadside assistance is for just three years and there is no capped-price servicing.
Service scheduling is also condition-based, meaning the vehicle will alert the driver when a service is imminent. This may not suit everybody, and we always recommend at least every 12 months or 10,000km, just to be on the safe side.
BMW does offer pre-paid service packs that take in basic maintenance for the first five years at $2369 or $3782, including brake-pad replacement, which works out to be about $475 and nearly $760 annually respectively. There is also a cap on mileage during that time frame: 80,000km.