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It’s been a couple of years since Toyota introduced the 12th-generation Toyota Corolla, and following Corolla’s typical timeline, 2023 sees a newly refreshed version with some surprises. The mid-generation refresh includes “four new hybrid models,” new AWD options, new multimedia, upgraded safety technology, and updated exterior style. However, its improved fuel economy is the most significant update for the already thrifty 2023 Toyota Corolla.

What is the Toyota Corolla fuel economy?

Last year’s Toyota Corolla LE, the most popular Corolla according to Toyota, featured an underpowered 1.8-liter four-cylinder engine with 139 horsepower. The 2023 Toyota Corolla LE sports a more powerful 169 horsepower 2.0-liter four-cylinder and gets better fuel economy, besting last year’s estimates “by nearly two miles per gallon,” with a Toyota-estimated 34 mpg combined. 

For even better fuel economy, the Toyota Corolla Hybrid gained a power upgrade for 2023. The 2022 Toyota Corolla Hybrid receives an EPA-estimated 53 mpg in the city and 52 mpg on the highway for a combined 52 mpg overall, using about 1.9 gallons per 100 miles. In addition, Car and Driver reports that its front-wheel-drive Corolla Hybrid performed significantly better in its fuel economy tests. Unfortunately, no fuel economy data is available for the 2023 Toyota Corolla Hybrid AWD.

2023 Toyota Corolla Hybrid improvements

The most notable change for the lineup is adding an optional AWD system making the 2023 Toyota Corolla Hybrid AWD “the only compact hybrid passenger car available with all-wheel drive.” The model “employs a separate rear-mounted electric motor to power the rear wheels when needed.” This system eliminates the need for bulky gear-driven systems and rear driveshafts. It also enables the rear-mounted electric motor to provide variable power when needed to prevent front-wheel slippage during cornering and straight-line acceleration.  

Toyota announced more options for 2023. In addition to the Toyota Corolla Hybrid LE FWD, there is the Corolla Hybrid LE AWD, the sport-focused Corolla Hybrid SE with FWD or AWD, and a premium Corolla Hybrid XLE trim. 

Toyota increased the Corolla Hybrid’s power with a “redesigned magnet and electromagnetic steel plate configuration with two additional magnets for increased output.” The 2023 model also has a lower center of gravity than last year’s model, thanks to a new lithium-ion battery positioned under the rear seat. 

Toyota improves upon its active driver assistance features with Toyota Sense 3.0, which includes:

  • Pre-Collision System with Pedestrian Detection (PCS w/PD)
  • Lane Departure Alert with Steering Assist (LDA w/SA)
  • Dynamic Radar Cruise Control (DRCC)
  • Lane Tracing Assist (LTA)
  • Road Sign Assist (RSA)
  • Automatic High Beams (AHB)

Is the Toyota Corolla Hybrid fuel-efficient?

A rendering of a red 2023 Toyota Corolla Hybrid is driving away from the viewer along a treelined paved road.
2023 Toyota Corolla Hybrid | Toyota

2023 Toyota Corolla vs. 2022 Toyota Corolla: What’s Changed?

With an EPA-estimated 52 mpg combined and real-world driving tests returning even greater fuel economy numbers, there is no doubt that Toyota’s hybrid is a fuel-efficient compact sedan. While other hybrids have better EPA fuel economy estimates, the addition of AWD and the premium XLE trim makes 2023 an exciting year for the reliable Toyota Corolla Hybrid.