[3] The Matrix was positioned as a sporty hatchback counterpart of the North American Corolla and was counted as a variant of it in Toyota's sales figures.

[10][11] Also, the center instrument panel was slightly redesigned and featured a Toyota head unit in place of the previous GM-sourced radio.

[12] In late 2006, Toyota discontinued use of the 2ZZ-GE engine and dropped the XRS from the Matrix lineup to be temporarily replaced by the M-Theory edition.

[18] The Matrix's XR mid-grade trim level added features like color-matched mirrors and door handles, a leather-wrapped steering wheel, and a panic button on the key fob.

Also included on all XRS models were anti-lock brakes with Electronic Brakeforce Distribution, 16-inch alloy wheels, and cruise control.

[9] Due to being front wheel drive, the XRS has a weight distribution of 59/41 (front/rear), which may result in understeer when driven hard.

Made with rigid plastic backs, the rear seats fold flat, creating a 53.2 cu ft (1.51 m3) cargo area.

In a practicality test, Motor Trend was able to haul more cargo in the Matrix than in a Subaru WRX wagon with 61.1 cu ft (1.73 m3) of space.

[11] NHTSA crash test ratings (2003):[28] In May 2008, Toyota issued a recall for 2003 and 2004 model year Corollas and Matrixes.

The recall notice cites two bolts in each of the front doors as potentially causing the window to come off the track and break.

[30] On August 26, 2010, Toyota issued a recall for 2005 to 2008 model year Corollas and Matrixes, equipped with the 1ZZ-FE engine and two-wheel drive.

[31] On November 20, 2019, along with 2003-2008 Corollas and 2004 and 2005 Yarises, the Matrix of the model years from 2003 to 2008 was recalled in Mexico due to these cars containing Takata frontal passenger airbags which might degrade due to weather exposure and variation of high temperatures, which usually occurs on cities with extreme weather, which might cause serious injuries on passengers.

[34] The sibling of the Matrix, the Vibe, was also upgraded, but production of that model ended after 2009 when the entire Pontiac brand was retired.

For the 2011 model year, the Matrix received redesigned exterior and interior elements, including front and rear fascias, wheels and seat fabrics.

The Matrix is rated "Good" in both frontal and side Insurance Institute for Highway Safety (IIHS) crash tests.

[42][43] NHTSA crash test ratings (2009):[44] The 2009 to 2010 model year Matrix (and its Vibe relative) are subject to the 2009–2011 Toyota vehicle recalls regarding floor mat and accelerator pedal replacement.

[46] On August 5, 2013, Toyota announced an end to production of the Matrix for the US market after the 2013 model year due to declining sales, and that there were no plans to replace it with another vehicle.

[47] The Canadian market continued for the 2014 model year, with those assembled in Cambridge, Ontario by Toyota Motor Manufacturing Canada.