Overview
The 12th-generation Toyota Corolla offers impressive fuel efficiency and an abundance of standard safety features in a compact package that looks far more exciting than it is to drive. The most powerful Corolla gets a four-cylinder engine with a mere 169 horsepower that fails to accelerate the car with any verve. Other small cars such as the Honda Civic and Mazda 3 are more nimble, responsive, and peppy, which makes them considerably more engaging to drive. A vast range of models is what sets the Corolla apart from other compacts. Offered as both a sedan or hatchback, the Corolla is also sold with an incredibly fuel-efficient hybrid powertrain with front- or all-wheel drive. Adults can comfortably sit in the rear seats, making the Corolla an affordable new car for people who need a reliable people mover. Driving the Corolla won’t knock your socks off, but its efficiency and style are guaranteed to impress.

What's New for 2023?
Toyota makes significant trim-level and powertrain changes to the Corolla for 2023. Corolla Hybrid models gain SE and XLE trim levels, while all-wheel drive is now optional for Hybrid SE and LE trims. The 139-hp 1.8-liter sold with the L, LE, and XLE trims has been replaced by the 169-hp 2.0-liter. Unfortunately, Toyota has nixed the optional six-speed manual for 2023, adding the Corolla to the mountain of cars offered with an automatic exclusively. A new 8.0-inch infotainment screen replaces smaller displays on all Corollas as standard equipment. The XSE and XLE now use a redesigned 7.0-inch gauge cluster; all models get an updated 4.2-inch cluster. Every Corolla receives minor visual tweaks like LED daytime driving lights and redesigned headlights for the SE, XSE, and XLE. The SE and XSE models also get a new rear diffuser and fresh 18-inch Gloss Graphite wheels. Corolla hatchbacks have a redesigned grille, LED headlights, and rear bumper with chrome accents. Nightshade and Apex trims are no longer offered. Finally, the base L trim has been removed, leaving LE models as the new entry-level Corolla.

Engine, Transmission, and Performance
The Corolla uses a 169-hp 2.0-liter four-cylinder that sends power to the front wheels through a continuously variable automatic transmission (CVT). While all hatchbacks share that same powertrain, the sedan also offers a hybrid powertrain. Our tests of the Corolla SE hatchback and the Corolla XSE sedan proved that even the strongest engine doesn't deliver adequate acceleration. The Toyota twins were quite prudent around town and steady on the highway, however. Unfortunately, hard acceleration produced coarse engine sounds that diminished their refinement. The all-wheel drive hybrid model we tested hit 60 mph in a rather leisurely 9.0 seconds while the last hatchback model we had in for testing did it in 8.3 seconds. Both the Corolla sedan and the hatchback have a pleasant ride quality that adequately isolates all but the worst bumps. Their controlled body motions also provide better agility than previous iterations. The Corolla SE and XSE further separate themselves with a stiffer sport-tuned suspension and the latter's larger 18-inch wheels (everything else rides on either 15- or 16-inch rims). Still, compared with athletic and engaging rivals, such as the Mazda 3 and Volkswagen Golf, the Corolla's progressive steering is satisfactory but not exemplary. While neither Corolla body style had impressive results in our 70-mph-to-zero braking test—requiring between 174 and 183 feet—their brake pedals were dependable and natural-feeling.

Fuel Economy and Real-World MPG
Along with a fuel-efficient four-cylinder, the Corolla sedan offers an immensely thrifty hybrid model. The EPA estimates the front-drive hybrid will earn 50 mpg city and 43 highway while the all-wheel drive one is rated for 47 mpg city and 41 mpg highway. Comparatively, the government estimates the nonhybrid 169-hp 2.0-liter engine will earn up to 41 mpg highway. The all-wheel-drive hybrid we tested earned 40 mpg on our 75-mph fuel-economy route; the gas-only Corolla XSE sedan with front-wheel drive we tested saw 41 mpg. The Corolla hatchback is rated up to 32 mpg city and 42 highway. The hatchbacks we tested earned 40 and 36 mpg, respectively. For more information about the Corolla's fuel economy, visit the EPA's website.

Interior, Comfort, and Cargo
Inside, the Corolla hatchback and sedan share a streamlined dashboard and soft-touch materials. Most models have passive entry and push-button start. Others can also be upgraded with ambient interior lighting, dual-zone climate control, and heated front seats. Those who regularly have back-seat passengers should consider the sedan over the hatchback since it has considerably more legroom behind the front seats. The Corolla hatchback has 18 cubic feet of cargo space behind its back seat, but we only fit two carry-on bags back there. However, the new no-cost Enhanced Cargo Space option expands that area by 6 cubic feet (23 total) by replacing the spare tire with a tire-repair kit. While the sedan only has 13 cubes of trunk volume, we squeezed eight bags inside. Both body styles had inferior interior cubby storage compared with some more capacious rivals. Thankfully, there's a convenient tray at the front of their center console and a useful bin below the armrest.

Infotainment and Connectivity
Every Corolla has a touchscreen infotainment system with Apple CarPlay, Android Auto, and a subscription-based Wi-Fi hotspot. The 8.0-inch touchscreen bezel dominates the dashboard, but its numerous hard buttons and rotary volume and tuning knobs help keep the driver's eyes on the road during use. Top options include wireless charging and an upgraded JBL audio system.