Next-gen Toyota Corolla Hybrid (2025 release): What we expect

Update: All sections have been revised with the latest details.

Following its introduction in 2018, the twelfth-generation Toyota Corolla was expected to be retired later this year in the U.S., following the typical six-year lifecycle of the series. However, Toyota has announced the MY2025 update, confirming that the current car will remain on the American market for at least another year.

We expect the electrified sedan to be succeeded by an all-new product for MY2026. Here are our expectations for the new Toyota Corolla Hybrid that’s expected to reach U.S. dealers next year:

Design & Features

Whether it is the flagship Crown, the midsize Camry, or the global favorite Corolla, Toyota sedans have become much bolder and classier in recent years. Of course, there’s still a choice of sportier fascias and styles in some models, but the overall look is gradually maturing. As you can see in our exclusive rendering below, we expect the all-new Toyota Corolla to follow these tracks, featuring a visibly more intense and upscale design.

The striking front-end has a more formal expression with slender headlamps and a slim upper grille, which is in line with the company’s new Hammerhead design philosophy. The lower grille, which serves the main cooling needs, is much bigger and edgier too. The vertical bars in this grille give the sedan a more stately appearance, leveling up its sophistication. The new bumper has muscular contours on the sides, communicating power and enhancing road presence.

On the sides, the roofline is similar to the current model’s design. The greenhouse is new and adds more style, thanks to the new belt line that starts straight and features swift curves at the end. At the rear, the new Corolla should feature sleek slimmer combination lamps, a fresh bumper, and a new tailgate.

Talking about features, our expectation is that the next-gen Corolla will retain the Toyota Safety Sense 3.0 (TSS 3.0), Toyota Audio Multimedia System, JBL Premium Audio and wireless charger, along with newly designed seats with added bolstering, featuring the SofTex material.

Specifications

Where the Prius offers a sleek and sporty design with large wheels with low seating, we’re expecting the Corolla to offer more or the less the same ingress, egress, passenger room and seat height as the current car. We expect the redesigned Corolla’s body to have additional reinforcement, leading to increased rigidity and quietness, and improved safety.

Toyota Corolla Hybrid

Japan’s BestCarWeb has reported that the next-generation Corolla Hybrid will feature Toyota’s new 1.5-liter naturally aspirated engine, producing 99 hp and 94 lb-ft of torque. While the combined (system) outputs haven’t been detailed, BestCarWeb suggests that the engine’s thermal efficiency would set a new benchmark. It’s important to note that while the Japanese and U.S. versions of the Corolla have differences, they share commonalities, including powertrain components.

If the next-gen Corolla Hybrid in the U.S. adopts the new 1.5L system, the EPA-estimated fuel economy is expected to surpass the current model’s 50 MPG (FWD, combined) and 48 MPG (AWD, combined), while offering the same performance. In fact, Toyota has itself indicated that the new 1.5L engine was designed to meet tighter emission norms in Europe and the U.S., without having to compromise on output or cost.

We anticipate that the Corolla Hybrid AWD will continue, with enhancements to the e-AWD system for better performance and efficiency.

Toyota Corolla Plug-in Hybrid

A major revelation from the BestCarWeb report is the plan for a plug-in hybrid system in the next-gen Corolla. Although details are scarce, the Japanese publication indicates that the PHEV system will resemble a “realistic and practical electric vehicle,” hinting at a sizeable battery pack that allows for daily driving as an EV. If this variant is brought to the U.S., it would mark the debut of the Toyota Corolla Prime.

Hybrids and plug-in hybrids are a bridge to battery-electric vehicles and will continue to feature in Toyota’s U.S. line-up for the foreseeable future. Toyota announced on April 7, 2023, that it would keep improving hybrids with an emphasis on quality and affordability, as well as introduce plug-in hybrids that can deliver a “practical” electric driving range of over 200 km (124 miles). With gas prices averaging at USD 3.5 for a gallon, the demand for hybrids should increase until BEVs become the most cost-effective solution.

Price & Release date

The all-new Toyota Corolla Hybrid could begin arriving at U.S. dealerships in the first half of 2025, with prices for the LE variant starting at around USD 25,000, and maxing out at USD 30,000 for the Nightshade AWD.

Based on our experience, the hybrid sedan impresses with its smooth and comfortable ride, well-equipped variants, and spacious front seats, all of which comes at an accessible price point. We don’t see Toyota changing this proven formula in the future model years. That said, we sure hope that Toyota can improve rear seat comfort (additional knee and headroom would be welcome) as well as design a slightly bigger boot in the next-gen sedan.

TopElectricSUV says

Considering the fierce competition from rivals and crossover models, it’s essential for the Corolla to come up higher in every department. It’s reasonable to expect the all-new Corolla Hybrid to deliver improved ride quality, enhanced style, updated in-cabin technology, and increased efficiency. Importantly, while these improvements respond to customer feedback and the pace of the competition, they also maintain the Corolla’s price positioning.

Next-gen Toyota Corolla Hybrid FAQs

Featured Image Source: TopElectricSUV’s exclusive rendering of the 2025 Toyota Corolla

I got my Master’s in Business Management & Administration and have been an International Automotive News Editor since 2014. I’ve traveled to global motor shows and automotive events, driven various types of vehicles, and focused on hybrid and electric cars in the last 4 years.