The curved lines trend in the automotive design affected the boxy-looking Corolla from the seventh-generation and lowered its drag resistance.
Toyota changed its strategy and increased the size of the seventh-generation Corolla range. The car was offered in various shapes and sizes, from a 3-door hatchback to a station-wagon with high-roof. The 5-door hatchback was a trendy choice due to its practicality.
Since the straight-cut design was almost gone and the carmakers started to rounded-up vehicles, Toyota followed that way as well. The seventh-generation of the Corolla featured smoother lines, which made the car decreased its Cx drag-coefficient as low as 0.30 for the fastback version. Its headlights were slim and covered the corners for some versions. In Australia, it featured round headlights, similar to those installed on the 3-door hatchback. A narrow grille below the hood was not enough to cool bigger engines, so an additional one was mounted in the lower bumper area. Behind the rear doors, it featured another small window and a raked D-pillar. At the back, Toyota installed more prominent taillights on the quarter panels and the tailgate.
The dashboard featured an extended instrument cluster, curved, which enhanced the visibility to the four-dials panel. Since it was built for young families, it offered a fair interior space for two adults and two children, with a pair of seats at the front and a bench in the back. For the base trim levels, the Corolla featured power-steering, power brakes, and a stereo-cassette.
Toyota fitted the Corolla five-doors with a choice of four engines, both gasoline, and diesel. All versions were paired as standard with a 5-speed manual. For selected markets and engine versions, a 4-speed automatic was on the options list.