Toyota launched the seventh generation of the Corolla in 1991, followed in 1992 by the five-door version, Liftback, aimed at those who didn't like the station wagon shape but needed more room than a regular sedan.
By the late '80s, this type of bodywork gained traction on the market, and more customers asked for it. Apart from the premium carmakers, most European car manufacturers started to offer something in this niche, and Toyota joined the trend. Moreover, it already had a tradition with the liftback version since it has offered one in several markets, including the U.S., since 1984.
Sharing its front fascia with the sedan, the Corolla Liftback featured rectangular, horizontal headlights with rounded edges, extended around the corners with the blinkers. The trend of boxy design of the mid-'80s was already gone, but Toyota's design team didn't want to go over the edge with the curved lines. Yet, they shaved all the corners and edges of the vehicle. At the back, behind the C-pillar, the Liftback featured a sloped tailgate, leading to the introduction of the third row of windows after the rear doors. At the back, depending on the trim level, the car was fitted with a black panel, which included the rear taillights and covered the trunk opening.
Inside, the front bucket seats provided minimal side bolstering, and the dashboard was carried over from the sedan sibling. The main difference was for the rear bench, which was a split-folding type, thus expanding the trunk area from 400 liters (14.1 cu-ft) to 1,120 liters (39.5 cu-ft).
Under the hood, Toyota dropped a choice of three engines, ranging between 1.3-liter and 2.0-liter. The gasoline versions offered a smaller displacement of 1.3 and 1.6-liter, respectively, while the naturally-aspirated diesel got a two-liter engine.