Toyota Is on a Mission to Make One of Its Most Popular and Affordable Cars Cool Again

More than 25 years after it last hit the dirt, the Corolla and its hot GR variant are staging a rally comeback.

Front side view of an orange Toyota car with white alloy wheels parked on a road with trees in the background.Toyota

While there’s no denying that the Corolla makes for excellent economical transportation in that it’s a cheap and reliable no-frills solution, it’s hardly the type of car that gets buyers’ hearts racing. 

Now, that’s not to say that the model has always been humdrum in its performance and its looks. Quite the contrary, as past Corollas, like the FX16, the AE86, the GT-S and the XRS all proved that the nameplate could signify more than just wallet-conscious commuting.

White Toyota rally car kicking up dust on a dirt road with a large rear spoiler.
Toyota’s GR Corolla RC2 will hit the dirt in the ARA next year.
Toyota

Moreover, with the launch of the hot GR Corolla variant in 2022, Toyota has already made a strong case for why there’s cause to take the car seriously again. Yet, it’s the automaker’s latest announcement that really demonstrates the extent of its commitment to make the Corolla cool.

The Corolla hits the dirt again 

As part of its 2026 Gazoo Racing Motorsports initiatives, Toyota will be entering the American Rally Association (ARA) National Championship for the first time with a car based on the GR Corolla

White Toyota Corolla rally car with Castrol and MoviStar logos airborne on a dirt road.
Toyota’s Corolla reached significant rally heights (literally) before the program was canned.
Toyota

Per the automaker, the decision comes in order to “make ever-better motorsports-bred cars on American roads.” Still, as important as racing will be to future performance development, it’s really the model’s past that makes this occasion so significant.

That’s because it’s been more than 25 years since Toyota fielded a Corolla in rally competition. Moreover, the car has an extensive racing history, from Hannu Mikkola’s win at the 1000 Lakes in 1975 Rally to the WRC manufacturer’s championship in 1999.

Two race drivers in racing suits holding helmets stand on either side of a white Toyota rally car on a forest dirt road.
Seth Quintero and Topi Luhtinen will suit up for Toyota as part of the initiative.
Toyota

As such, it makes for quite the comeback story. After Toyota’s withdrawal from rallying, the brand eventually made a return to the sport with the GR Yaris, leaving the Corolla sitting on the bench.

Luckily, in that time, the Toyota Gazoo Racing World Rally Team (TGR-WRT) has stayed busy, amassing six manufacturers’ titles since 2018. It’s their expertise that has refined the road-going GR Corolla for sideways rally duty as part of the RC2 class.

White Toyota rally car kicking up dust on a forest dirt road.
Toyota’s GR World Rally Team is hardly lacking when it comes to success, having taken six titles since 2018.
Toyota

Exciting in the showroom, too

When Toyota squared up against Mitsubishi and Subaru in rally back in the day, success on the circuit translated to sales on the showroom floor. 

It’s a strategy that we’re finally seeing once again with the twelfth-generation Corolla. In addition to approachable SE and XSE trims bringing entry-level sportiness with tuned suspension and upgraded seating, Toyota also has the hot GR Corolla for those wanting uncompromising performance.

2026 Toyota Corolla Hatchback FX Edition next to old Corolla in front of record store
Toyota’s retro-inspired FX trim recalls the FX16. They’re subtle changes but they’re nevertheless impactful.
Toyota

Now that it’s competing, the car will bring real-deal motorsport pedigree. Toyota says it hopes this will “support the development of rallying in North America, where the GR Corolla is available as a rally-bred performance car for the road.”

To that end, Toyota has also clearly been listening when it comes to giving the Corolla some more exciting looks. 

For instance, the retro-inspired FX package demonstrated how it can successfully recall the Corolla’s heritage through just a few simple changes. Even as plain as the twelfth-gen is compared to some of the competition, it still makes for a marked upgrade.

Front view of a sleek silver Toyota electric car with a black roof and futuristic LED headlights.
The future of the Corolla could hold some radically different styling if Toyota’s latest concept is anything to go by.
Toyota

What’s more, Toyota’s visions of the Corolla’s future design are anything but mundane. Between a striking light bar and some bZ-reminiscent wheel arches, its exterior promises to be as radical as its potential multi-energy powertrain options.

Whether or not you’re invested in rally or you put much stock into concepts, Toyota is keen to make the Corolla cool like it used to be, and that means there’s a lot to be excited about on the horizon.

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