The next-gen car will adopt a new platform that allows for traditional gas and hybrid powertrains, plus new PHEV and EV models.
Toyota is giving its affordable Corolla compact sedan a massive overhaul, with sharper styling and a diverse array of new powertrains. Toyota showed a flashy Corolla concept car in late 2025, and we expect the dramatic styling to carry over to production with minimal changes. The cabin should also look far more modern than the current model, with an airier design, larger screens, and simplified controls. The Corolla should arrive first as a sedan, although the fastback roof may disguise a rear hatch that could make the current hatchback model redundant, especially given the rising popularity of the Corolla Cross subcompact SUV.
The Corolla is one of Toyota’s breadwinners. Last year, it was the brand’s fourth-bestselling model in the United States, racking up 248,088 sales, and making it the 11th-bestselling vehicle in the entire country. But the current model has grown long in the tooth, on sale in sedan form since 2020, with the current hatchback launching in 2019. The Corolla faces strong competition from cars like the Honda Civic, along with subcompact SUVs that have started to become the default for those looking for an inexpensive set of wheels. A new generation of Corolla will need to prove that there is still space for compact, low-priced sedans in a U.S. market that’s increasingly obsessed with SUVs.
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