It was built from August 1974 to July 1981[1] and marked Toyota's greatest growth in the United States in the wake of the fuel crisis.

This generation offered as standard equipment a new windshield wiper and headlight switch installation, operated by levers attached to the steering column.

In 1975, for the 1976 model year, the Corolla received a minor facelift, including a revised grille and new hood with a raised centre section.

They also criticized the "relatively crude rear suspension", lack of interior space, and poor fuel economy when compared to the VW Rabbit.

Its replacement, the 4K engine, came with Toyota TTC emissions equipment but only produced 60 hp (45 kW), despite a greater 1,290 cc displacement.

The previous 3K-C engine was superseded by the locally built 4K-C. At the same time, an entry-level SE version of the wagon was made available, with a range-topping XX coupé released in October 1979.

[6] Due to the expenditure of manufacturing of the car in Australia, the production continued for several years after it was replaced by the next generation model everywhere else, although the TE72 Corolla Liftback was sold alongside as the Toyota T-18.

This facelift coincided with minor interior trim changes, new seats, revised suspension settings, and a five-speed manual option.