The Corolla is back and, while there are some out there who might well simply give a dismissive shrug of their shoulders and ask “so what?”, the truth is this is a very different machine than the one that disappeared from our shores more than a decade ago.

It replaces the car that replaced it – the Auris – but this time with hybrid powertrains. You don’t have to trouble yourself with plugging it in overnight either, the Corolla is self-charging, meaning that it will take care of that side of things itself.

Like all hybrids, it has a small electric motor that can be used to boost either fuel economy or performance, and a little battery to power it. The battery is charged by harvesting energy from the brakes as you slow down.

The CO2 emissions and, on paper, fuel economy numbers are impressive and, thanks to tax breaks, the Corolla would appear to be a much more wallet-friendly option for your company car than any of its diesel-engined rivals but that doesn’t mean it’s got the market cornered.

There are a growing number of hybrid rivals out there, such as the Hyundai Ioniq and Kia Niro, that the Corolla has to see off if it’s to claim a place at the top of your shopping list.

It certainly gets off to a good start. It is a sharp-looking hatchback that enjoys a sporting, dynamic appearance thanks to a low bonnet and roofline that brings the car closer to the road. The front sports a new evolution of Toyota’s design philosophy with the narrow grille sitting beneath a flatter, clamshell bonnet. There are new all-LED headlights with integrated daytime running lights.

The sides of the grille surround form a catamaran hull-shape – a signature design – at the corners that emphasise the car’s width, giving it a more planted stance.

The rear is curvaceous, with a pronounced rump that harks back to the 2nd generation Megane, and a tailgate made from resin to reduce mass. The haunches are muscular and the rear lights have been pushed as far to the corners as possible, again to enhance the car’s width. The rear bumper echoes the catamaran-look of the front and on the 2.0-litre hybrid – reviewed here – there is a slim lower lip with two chrome inserts.

It is longer – 40mm, to be precise – than the Auris and all of that is contained within the wheelbase which should certainly impact positively on passenger space while front and rear overhangs have been reduced by 20mm, creating a wheel-at-each-corner appearance. The height has been reduced by 25mm while the cowl height – the base of the front windscreen – has lowered by a massive 47mm. Finally, the front track has been increased by 6mm while the rear has grown by 30.

So, it looks good and, thanks to changes to its dimensions it should be both more accommodating and better to drive – but is it?

There’s a choice of two powertrains – the other one uses a 1.8-litre petrol engine – both driving the front wheels through a CVT transmission. The smaller engine produces a modest 120bhp and 0-62mph time of 10.9 seconds. The 2.0-litre version, however, boasts a much healthier 181bhp and a sprint time of 7.9 seconds. That’s warm, if not quite hot, hatch territory. It feels punchy and responsive too and makes reasonably light work of overtaking slower vehicles on country lanes. Top speed is a largely irrelevant 112mph.

The steering is quite accurate and you can feel the weight building in a predictable, reassuring way. It’s pretty composed, too, as long as you don’t pose more difficult questions with sudden changes in direction because, if you do, that’s when the Corolla starts to come unstuck.

Try to carry any significant speed into a corner and the front end displays an unwelcome reluctance to turn in and will start to run out of grip much sooner than the very best handling hatchbacks.

The flip side is that the Corolla is very comfortable. The suspension errs towards the soft side and so sharp edges and potholes are dispatched with very little fuss. The ride is, in fact, smooth and isolating but the car can take a while to settle when you’re driving along undulating roads.

The brakes are pleasantly smooth for a regenerative system. Often these types of brakes can feel a little grabby when you slow the car, making it difficult to reduce speed gently, but the Corolla’s anchors don’t possess this particular trait in great abundance.

Refinement is, for the most part, very good. In stop-start traffic, particularly, when you’re running on electric power alone the cabin is a sea of calm. Possibly even an ocean. Even when the engine does offer some assistance, you’re unlikely to notice any real change in cabin ambience.

It’s only when conditions impose more of a strain on the engine that it makes itself heard. This is largely down to the use of the CVT gearbox. As I’ve mentioned before, CVT transmissions can send engine revs racing towards the red line suddenly during moderate to heavy acceleration and they stay there until you reach cruising speed.

Tyre and wind noise is well suppressed. The 2.0-litre model is equipped with acoustic side glass that seems to do an excellent job of preventing unwelcome sounds permeating the passenger space.

The cabin is nicely bolted together and there are lost of soft-touch surfaces to give it an upmarket feel. There are few flashes of brightwork to inject a little visual interest in what would otherwise be a rather sombre environment but what instantly catches the eye when you climb behind the wheel is the eight-inch screen mounted high on the centre of the dashboard.

Its position means that its easy to operate without having to move your eyes too far away from the straight-ahead. It isn’t the most intuitive set-up, however, and navigating through the menus can be a slightly laborious process that isn’t help by the touchscreen’s sluggish response, nor the less-than-impressive screen resolution and graphics.

Apple CarPlay and Android Auto are both present and correct so you can steer clear of the firm’s shaky Toouch 2 software if you want to. You also get DAB radio and, of course, Bluetooth plus, if you’re happy to shell out an additional £450, a JBL premium sound system.

You’ll have few problems getting comfortable behind the wheel thanks to a wide range of adjustment in the seat and steering wheel. The seats are comfortable and supportive and all the controls are easy to reach and feel well-damped.

Visibility out the front and sides is excellent, but the thick rear pillars do hamper your view out of the back. To give you a helping hand with manoeuvring in tight spaces, front and rear parking sensors are fitted as standard on all but the entry-level Icon models.

Front-seat passenger enjoy plenty of legroom but the lower roofline does mean there’s a little less space above your head. It’s wide enough that you’re not rubbing shoulders with the person next to you, though.

It’s a different tale in the back where both head and legroom are a little on the cramped side. The footwells are a bit of a squeeze too, with very little room between the base of the front seats and the floor.

Storage-wise there’s a generously-sized glovebox, a small cubby beneath the centre armrest and a few other places dotted around the cabin for your odds and ends plus a couple of cup-holders in the centre console. The door bins are on the small side, however.

The boot in the 2.0-litre version is compromised by the need to place the car’s battery beneath the floor in the back. Unlike the 1.8, there isn’t room for it under the bonnet. This means that with the 60/40 split-folding rear seats in place, capacity is just 313 litres and 581 litres with them stowed away. That’s actually smaller than some cars in the class below.

If you’re looking to do your bit to protect the planet, the Corolla certainly offers the chance to improve your green credentials. Even the 2.0-litre model reviewed here promises CO2 emissions of just 89g/km plus fuel economy between 50 and 60 miles per gallon. It isn’t particularly fun to drive, although the powertrain possesses plenty of poke, it’s cramped in the back and the boot is small unless you opt for the 1.8.

It is comfortable, though, comes with loads of standard kit and did I mention its unquestionable efficiency?

Toyota Corolla Excel 2.0 Hybrid

Price: £29,995

As tested: £31,420

Engine: 2.0-litre 4-cylinder petrol

Transmission: CVT automatic

Max power: 181bhp

Man torque: 202Nm

Max speed: 112mph

0-62mph: 7.9sec

Combined: 50.43 – 60.62mpg

Emissions: 89g/km

For more information visit www.toyota .co.uk