With a frugal powertrain, well-equipped interior and smart looks, there’s plenty to recommend the Toyota Corolla if you’re on the lookout for a family hatchback.

This self-charging hybrid is a good compromise for buyers who aren’t ready to go fully electric but find petrol cars too inefficient.

The Corolla is available with either 1.8-litre or 2.0-litre full-hybrid engines, combining a naturally aspirated four-cylinder petrol engine with two electric motors.

Both engine options have been upgraded and the 1.8-litre variant, tested here, can now produce 138bhp and is 1.7 seconds quicker than its predecessor from a standing start to 62mph, performing the sprint in 9.2 seconds.

My test car returned a pleasing fuel economy average of over 53mpg in mixed conditions – not far off the quoted official figure of 60.1mpg. Meanwhile, CO2 emissions have been slightly reduced to 102g/km for the 1.8-litre engine and 107g/km for its slightly more powerful stablemate.

The Corolla has a slick exterior lookThe Corolla has a slick exterior look For everyday use, the powerplant strikes a nice balance between performance and economy.

The Corolla is generally good to drive – with the updated model having a 10mm-lower centre of gravity than the model it replaces, as well as a body that is 60 per cent more rigid.

The transmission isn’t to everyone’s taste, but does add to the car’s ease of use. As is typical with a CVT set-up, a heavy right foot will bring forth a slightly coarse engine note as the revs soar, so it’s better to adopt a less urgent driving style and let the Corolla go about its business in a more relaxed manner. For the occasional burst of power, the engine noise isn’t too annoying.

The steering is sharp and nicely-weighted, while the ride is very comfortable thanks to a relatively soft suspension setup that doesn’t completely kill the sporty vibe but does a decent job of catering for the extra weight of the hybrid battery pack. The drive battery is located under the rear seat, where it doesn’t intrude into the boot space.

The interior has an upmarket feel, with the highlight being the new infotainment system, which is a lot more user-friendly than before.

A 10.5-inch infotainment screen is central to the upmarket interiorA 10.5-inch infotainment screen is central to the upmarket interior

The new 10.5-inch infotainment system offers sharp graphics and an intuitive experience – an improvement on the smaller and duller screen it replaces. From mid-trim upwards, you also get a 12.3-inch digital gauge cluster as standard.

There are generous levels of standard kit, including a reassuring amount of safety functions, which clearly add to the car’s appeal as a family-orientated vehicle.

You’ll have no problem getting comfortable in the Corolla’s front seats, with plenty of legroom and headroom, and lots of adjustment.

Things are tighter in the back, with room feeling very limited for adults. Indeed, I had some difficulty in pouring my 6ft 3in frame into the rear seats, so would probably look to opt for the Corolla Touring Sports option if adults needed to use the back seats frequently. However, it’s worth bearing in mind that most children would be more than comfortable in the back of the Corolla hatch, which will be enough to satisfy many family buyers.

We tested the Corolla in GR Sport trim, which comes with more aggressive styling inside and out, but doesn’t provide a more sporty drive.

You get and GR-embossed sports seats, a three-spoke perforated leather steering wheel with red stitching and satin chrome insert, and new 18-inch gloss black 10-spoke alloy wheels.

As an all-round package, the Corolla is a compelling offering and well worthy of consideration.

The Lowdown

Toyota Corolla GR Sport

ENGINE: 1.8-litre petrol self-charging hybrid

PERFORMANCE: 0-62mph in 9.2 seconds and top speed of 111mph

ECONOMY: 60.1mpg combined and 102g/km

TRANSMISSION: CVT auto, front wheel drive

PRICE: £33,405