Designed as a low-budget vehicle, the Starlet made its appearance on the Japanese market in late 1989. In March 1990, Toyota introduced it to the European market.
The Japanese carmaker worked hard to improve its products, and the Starlet was proof of commitment. It was better in any way, and it was available in a few body shapes, including a three-door hatchback. On the European market, it faced tough competition against the well-known Renault 5, Opel Corsa, or Peugeot 205, to name just a few.
At the front, the little Starlet featured a set of headlights and corner-mounted turn-signals that resembled the third generation of the Ford Fiesta. Unlike that one, the Japanese contender featured a black plastic grille with horizontal slats. Like any other three-door hatchback, it featured a set of longer ones to provide easier access for the rear-seat passengers. In the back, the windows were front-hinged and could have been opened via a pop-out system. Toyota installed a carefully designed dashboard with rounded shapes and a center stack for the audio and ventilation systems. It was the beginning of the biodesign era.
Under the hood, Toyota installed a wide range of engines from a small 75 hp unit up to a turbocharged, 135 hp version. The carmaker offered the car with a diesel engine for specific markets. An all-wheel-drive version of the Starlet was available, again, on distinct markets.