Due to the Lost Decades recession at the time, Toyota ordered Corolla development chief Takayasu Honda to cut costs, hence the carry-over engineering.

On the island of Batam, where used imports from Singapore are popular, the Corolla GLi E110 is one of the most common models, in the private car[3] and taxi[4] segment.

In addition to the bigger 1.8-liter 7A-FE Hi-Torq engine, the Corolla received new front and rear body panels, upgraded interior, and ABS was also standard on the SE-G.

In the Philippines, the E110 Corolla, nicknamed "Love Life" or "Baby Altis", was launched in December 1997, and was originally available in three grades: XL, XE, and GLi.

[6] The 1.3 XE was a step up from the standard XL grade, adding dual SRS airbags, 14-inch alloy wheels, and a Fujitsu Ten 4-channel audio unit.

It was sold as rental cars and taxis alongside the E120 Corolla Altis until May 2004, when it was replaced by the newly launched Toyota Vios J variant.

The name 'Corolla Altis' was first applied to a new 1.8 SE-G trim with identical features to the GLi, including a new 1.8 L 7A-FE engine, modified front and rear body panels, a remodeled grill, and a 4-speed automatic transmission.

Toyota Motor Philippines also made an interactive CD brochure featuring the GLi, XE and XL models.

Unlike the Japanese counterparts, the North American Corolla at the time was only offered as a four-door compact sedan.

Although these efforts theoretically would have decreased oil burn, a flawed piston ring design affected all engines without VVT-i.

The 2001 model year also got a slight refresh with the new front headlights/corner lights, redesigned front bumper, auxiliary DC power port with a higher armrest (LE and S models), inside trunk release for accidental lockouts in the trunk, new controls for the air conditioner that had the rear glass defrost button relocated with a button for the recirculation of air, and round reverse lights.

The 'sportiness' of the S model built upon the VE models with a gauge cluster with tachometer in a red/black theme with an outside temperature gauge, the lightweight 3-spoke steering wheel used in the Toyota Celica and Matrix of the same model year, a charcoal gray and black interior with lighter seats, standard front fog lamps, color matched side skirts, color matched rear mudflaps, color matched door handles and side mirrors, a color matched front grill, a trunk release lever next to the gasoline cap door lever (but not on the remote fob), a trunk light, 14" S model wheel covers, and lighted map lights on the rear view mirror.

Official Toyota accessories available through dealerships for all trim levels of the eighth generation Corolla included: front-end mask, gold emblem package, color-keyed rear spoiler with center high-mount stop lamp, wheel covers, aluminum alloy wheels, wheel locks, mudguards, sunroof wind deflector (LE and S models only), genuine wood dash appliqué, carpeted floor mats, all-weather floor mats, carpeted trunk mat, trunk cargo net, Toyota VIP RS3000 remote keyless security system, 6-disc trunk-mounted CD changer, compact disc deck (fits in storage bin), and a 6-disc in-dash CD changer.

[15] North American market engines: This range had different front and rear ends to the Japanese models, though the sides and interior remained mostly the same.

Japanese production for Europe ended in September 2001, while Toyota's British plant built the E110 Corolla for an additional two months.

In 1997, the Corolla Spacio, with its body panels stamped at long-time Toyota supplier Kanto Auto Works, was introduced as a two-box minivan version, which was technically similar to the Avensis in Europe.

The E110 was the last generation of Corolla to have an upmarket Sprinter Carib offshoot; for Oceania this was based on the five-door station wagon.

In New Zealand, until late 1998, CKD kits were brought in from Japan and assembled in plants located in Thames and Christchurch.

The G6 was a special version of the European E110 Corolla hatchback, powered by a 1.3 L 4E-FE or a 1.6 L 4A-FE engine in the pre-facelift and by a 1.4-liter 4ZZ-FE or a 1.6-liter 3ZZ-FE engine in the facelift, the G6 features color-matched bumpers, front Lip (pre-facelift and facelift optional) and unique to this model: short-ratio 6-speed C161/C162 transmission, all-wheel disc brakes from the E110 liftback, front honeycomb grill, black/red honeycomb dials and silver cluster face.

[citation needed] To celebrate Toyota's 1999 Manufacturer's World Rally Championship the G6R was created, going on sale in December 1998.