Toyota is opening up its GR Corolla hatchback to “enthusiasts who’d rather focus on the handling” by offering the sporty compact with an all-new eight-speed Direct Automatic Transmission (DAT) for 2025, complete with race-inspired paddle shifters, of course. The gearbox differs from the units in the GR Supra and GR 86, Toyota says; the driveline in those cars shifts gears based on the vehicle’s behaviour, whereas the DAT in the GR Corolla reads the brake and accelerator inputs from the driver and predicts their intention, optimizing gear selection “before changes in vehicle behaviour occur,” and allowing for shifts “similar to that of professional drivers.”

Circuit and rally driving courses worked as the development lab for the new automatic, with its close gear ratios meant to emulate those of Toyota’s six-speed manual. That said, Toyota boasts “even casual highway driving has an energetic feel” when you opt for the DAT. There’s an ATF cooler standard, and an additional sub-radiator available on higher trims. Sport, Normal, ECO, and Custom drive modes are selectable, but Sport is what the ’25 Corolla GR is tuned for.

The new transmission isn’t the only improvement to the 2025 Corolla GR, though. The 1.6-litre three-cylinder turbo underhood still makes 300 horsepower, but now churns out 295 lb-ft of torque instead of 273. The suspension has been tweaked, with, for example, springs that better “suppress inner wheel lift during energetic dynamic driving.” Models with the DAT also come with launch control, though Toyota notes this isn’t meant for road use. The front bumper has been opened up to better cool all the things behind it, including the brake ducts, also redesigned for 2025.

Doing the trim walk, the base Core gets a new standard heated steering wheel. And the new Premium grade above it (well, new to Canada; the U.S. has had the Premium spec before, but the relative feature-laden-ness of our Core made it redundant, here) makes standard the goodies the now-gone Circuit trim used to boast, like a carbon-fibre roof and matte black wheels. That aforementioned sub-radiator shows up on Premium, too, along with a new HUD. Premium with the DAT nets you dynamic radar cruise control and “Intelligent Clearance Sonar.”

The on-sale date for the 2025 Toyota GR Corolla in Canada is some time this winter, with more specific details and pricing still to come later this year. We’ll note the 2024 starts at $46,850 for the Core.

Sign up for our newsletter Blind-Spot Monitor and follow our social channels on Instagram ,Facebook and X to stay up to date on the latest automotive news, reviews, car culture, and vehicle shopping advice.