In addition to Indonesia, the Avanza is sold throughout Southeast Asia, Mexico, Pakistan, Nepal, Bangladesh, Sri Lanka, the Middle East, Caribbean, Egypt, South Africa and other various African countries.

[15][16] This hybrid-type chassis made it possible for the vehicle to retain the rear-wheel-drive layout from the previous generations of Kijang along with its ability to handle heavier loads.

According to Toyota and Daihatsu, the switch was made as the infrastructure quality had improved in Indonesia, along with efficiency, performance and comfort benefits of the front-wheel-drive layout.

The Malaysian market Veloz is fully manufactured in the country since 2022, sharing the assembly line with the similar Perodua Alza.

[45][46] It was manufactured at Astra Daihatsu Motor's Sunter assembly plant, with 61 percent of its parts were sourced locally.

[53] Similar to the export models, the 1.3-litre engine was upgraded to use variable valve timing (VVT-i) technology and individual direct ignition coils, while changing the designation to K3-VE.

In July 2006, it received its first facelift with a redesigned grille, bumper, beige interior colour and updated tail lights.

It received a front bumper mesh grille, added fog light garnish and a chrome accent in the rear window.

[citation needed] In 2006, the Avanza makes up 40 percent of Toyota total sales in Malaysia and around 140,000 units were sold in the country by 2012.

[71] It was discontinued January 2010 when Daihatsu pulled out from Chinese market and the joint venture for auto parts also dissolved in 2010.

[32] The second-generation Avanza was launched on 9 November 2011 in Indonesia with development led by Toyota chief engineer Kaoru Hosokawa.

[93][94][95] According to Toyota's South African division, the second-generation Avanza has been made approximately 20 kg (44 lb) lighter.

Along with the use of low rolling resistance tyres, enhanced air conditioner regulation and electric power steering, the vehicle was reported to have achieved a substantial increase in fuel efficiency.

The MacPherson strut suspension at the front and the four-link design with a lateral control rod at the back have been revised to improve ride quality and suppress swaying when changing direction.

Other changes includes an updated front and rear fascias, interior colour, head unit and ABS/EBD as standard (previously only available on Veloz grade).

LED headlights became standard on all variants, along with shark fin-type antenna, updated alloy wheel design and interior colour, digital air conditioner controls, auto retractable outer mirror (for G and Veloz grades), keyless entry system with push start engine button (for Veloz grade), and revised suspension tunings.

In November 2016, Toyota-Astra Motor introduced the Toyota Transmover (downgraded Avanza below the E grade) for fleet usage in the market.

[113] In February 2018, the 1.5 X grade was added to the range and positioned above the 1.5 S. It had several aesthetic add-ons to give the exterior a more rugged, crossover-inspired appearance.

[114] The second facelift Avanza was launched in Malaysia on 17 May 2019, with all models received the front fascia from the Indonesian market Veloz.

[125] Similar to the Transmover, the base 1.3 X grade with manual transmission is the sole variant of the Xenia sold alongside the third-generation model since November 2021.

[127] The African version of the Avanza with no ABS received 4-star safety rating for adult occupants and 2 stars for infants from Global NCAP in 2019.

Despite the longer body, its turning radius only slightly increased to 4.9 m (16.1 ft) and its weight is claimed to decrease by around 45 kg (99 lb).

[147] The Bangladesh market Avanza was launched together with the Veloz and Raize on 5 June 2022, it is offered in a sole variant, powered by a 1.5-litre 2NR-VE engine, with CVT as standard.

[149][150] The third generation Toyota Avanza was launched in Peru in June 2022, with 4 variants available, powered by a 1.5-litre 2NR-VE engine, options between a 5-speed manual or CVT.

[citation needed] For the Costa Rica market, Avanza was launched on 26 July 2022, it is offered solely in High Line trim, powered by a 1.5-litre 2NR-VE engine, with CVT as standard.

[158] The Bangladesh market Veloz was launched together with the Avanza and Raize on 5 June 2022, it is offered in a sole variant, powered by a 1.5-litre 2NR-VE engine, with CVT as standard.

Locally positioned as an "SUV", it is offered in sole GX grade level, with CVT and Toyota Safety Sense as standard.

In January 2024, Toyota issued a recall notice on 6,630 units of the Philippine market Avanza and Veloz produced between 12 September to 13 December 2022, which both models involved a fault during assembly caused damage to the front disc brake slide pin boot.

The company stated that the affected units may have had rust which may lead to the early wear of the brake pads if any water enters the slide pin boots.

[167] Several days later, a separate recall was issued for the same vehicle in Indonesia and Philippines, which both models received improper welding on the side impact beam of the right front door.