Toyota refreshed the fifth generation of the Corolla in 2000, five years after the model's introduction, and offered it in a few body shapes, including the popular three-box sedan.
As one of the best-selling vehicles in the world, the automaker had to meet its customers' expectations. This facelift was so significant that many people considered it as being a new generation, even though it wasn't.
One of the most essential upgrades was that the entire Corolla range got the same front fascia design, thus making it easier not only for the automaker to build but also for customers to recognize it. Toyota introduced a double headlamps system for the entire range, including the sedan. That led to a redesigned grille with horizontal slats and a new wrapped-around plastic bumper that sported a lower grille and a pair of side scoops. The car's greenhouse was ended into a raked-forward rear windscreen right above the rear wheels.
Inside, the designers changed the dashboard completely. They installed a small LCD on top of the center stack and buttons around it. It was used for the audio system as an ancestor for the infotainment systems. The instrument panel was different, depending on the engine option, with or without a tachometer. Finally, the rear bench was suitable for up to three passengers on short trips but not that good on long travels.
Under the hood, Toyota installed a small range of engines consisting of a 1.6-liter gasoline unit and two diesel versions: a 1.9-liter carried over from Peugeot-Citroen, and a 2.0-liter turbo-diesel developed in-house.