The Japanese marque has been slow to address the trend for compact urban crossovers readily adopted by large numbers of drivers, even if it already has the most expansive SUV lineup on sale.
Mazda enjoys a solid head start over Toyota with the CX-3, Honda has its HR-V and there are similar offerings on the table from the likes of Ford, Holden, Renault, Suzuki, Peugeot, Jeep and Citroen.
While Toyota doesn't move quite so quickly as smaller rivals, the giant's footsteps tend to send tremors through the industry.
Volkswagen and Hyundai will soon join the fray.
When Toyota's CH-R contender goes on sale on Friday, it will be almost seven years after the brand started its compact crossover project.
It doesn't normally take so long to develop a car - particularly one that could have close ties to the Corolla hatchback - but chief engineer Hiroyuki Koba made a bold call partway through the model's development, rebooting his work to adopt the Toyota New Global Architecture developed for the latest Prius - a driver-friendly and hybrid-ready platform.
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Acknowledging Toyota is late to the party, executive director of sales and marketing Tony Cramb says the decision to delay was sound.
"It's not like Toyota didn't understand that this market is a big opportunity," Cramb says.
"[Koba] made the right decision to delay to bring the absolute best product."
Toyota has high hopes for the C-HR, saying it will be a pillar of its small car stable for years to come. Cramb characterises it as a "brand builder", a model following in the tyre tracks of the Toyota 86 coupe by giving customers a style-centric option outside its fleet-friendly comfort zone.
Rather than choosing the vehicle based on its price, reputation or ownership credentials, Toyota hopes the majority of customers will choose the C-HR based on design - and that almost all of them will be new to the brand.
The car's styling engages the eye from any angle, its myriad Lexus-like folds and creases holding or reflecting light as intended. Some of the test examples on launch were finished in a range of bold colours including bright yellow, cyan and red tones - many with contrasting black or white roof and mirror treatments to accompany a choice of eight different alloy wheel designs that form part of a new personalisation program.
Well-proportioned and neatly executed, the design works well to our eyes. It's similarly interesting on the inside, where a diamond-shaped motif featured on the bodywork reappears as scalloped hollows in the headlining and a dimpled texture to the door cards. We're less convinced of the interior palette in high-grade models that feature charcoal and silver trim augmented by glitter-infused piano black elements and large swathes of brown-coloured leatherette or plastic across the dash top, centre console and door cards.
The interior basics are well-sorted - supportive sports seats join a nicely placed steering wheel amid adequate occupant and storage space. Niggles include a lack of shift paddles on automatic models, the budget-look double-DIN stereo with just one awkwardly placed USB point and the absence of Apple CarPlay or Android Auto connectivity. Boot space and rear room are also a little tight, and the car's upswept window line could leave back seat passengers feeling queasy or claustrophobic.
But again, the basics are there - all models get sat nav and a reversing camera as well as a comprehensive safety suite with autonomous emergency braking, active cruise control and blind spot monitoring fitted as standard.
Priced from $26,990 plus on-road costs, the standard C-HR gets silver-coloured 16-inch alloys, dual-zone climate control, cloth seats and a six-speed manual transmission. Factor in another $2000 for the CVT automatic option that Toyota expects 95 per cent of customers to choose, and a further $2000 for adaptive all-wheel-drive.
An upmarket C-HR Koba model brings extras such as two-tone 17-inch wheels, heated leather seats with electric adjustment and a high-tech moisturising climate control system for another $4300, topping out at $35,290 plus on-road costs before you factor in metallic paint or a broader-than-usual range of accessories.
Far from being the most affordable model in its segment, the C-HR wins back ground with a new ownership scheme featuring a three-year warranty and five years of servicing capped at $195 every 12 months, as opposed to Toyota's usual six-month intervals.
That change was made possible by a new 1.2-litre four-cylinder engine that uses a turbocharger to make 85kW of power. You might think that's a small number for a decent-sized car, and you'd be right - the C-HR feels lumpen and stressed when pressed into use on steep hills or when overtaking. It even feels less special around town, despite a decent 185Nm torque peak on tap from 1500 to 4000rpm.
Part of the problem lies in Toyota's choice of automatic transmission, a continuously variable unit that feels as though it saps power while blurring driver inputs. The same can be said of its optional all-wheel-drive system, which feels entirely unnecessary when each Bridgestone Potenza sports tyre is only tasked with transmitting 21-and-a-quarter kilowatts to the ground.
The model's Ducati-riding, open-wheeler-racing, classic Supra-driving chief engineer says the entry-level, two-wheel-drive manual model is the only way to go for enthusiasts. We wouldn't argue with that.
Whichever way you go, the C-HR feels surprisingly quiet and refined on the highway, with road noise well under control.
It sits flat when cornering, soaks up bumps nicely and has the best steering of any small Toyota - save for the 86 - in recent memory.
It's possibly that Koba didn't strictly need to go back to the drawing board, but we're glad he did, as his car is all the better for it. It's a stylish and dynamically impressive machine let down by an undernourished engine.
The C-HR's handling also points to a bright future for the next Corolla, which will be based on the same platform as this model.
The main drama for Toyota is that it does not have production to meet demand. International sales of the C-HR have been so strong that its local arm can only secure 6000 examples this year, which means some customers are going to have to wait a while before getting into a car.
While that should stop the C-HR from winning its sales race in 2017, it should be enough for Toyota to get a foothold in an increasingly competitive market.
And enough to have rivals trembling.
2017 Toyota C-HR pricing and specifications
Price: From $26,990 to $35,290 plus on-road costs
On sale: ?Friday February 24?
Engine: 1.2-litre four-cylinder turbo petrol
Power: 85kW at 5200-5600rpm
Torque: 185Nm at 1500-4000rpm
Transmission: Six-speed manual or CVT auto, front-wheel-drive or all-wheel-drive
Fuel use: From 6.3L/100km
4 Comments
it'll most likely be a better investment than most of the opposition, will be reliable and well built - but I don't think I can ever get an CVT. And 1.2 turbo just sounds so small, especially against, say, the 1.4 turbo 103kW of the Vitara which no sounds rather large and powerful in comparison. Maybe we'll get used to the idea of engines that size at time goes on.
two-wheel-drive manual model is the only way to go for enthusiasts ... enthusiasts of watching paint dry, nails rust, grass growing ...
Ah... the ugly gene.. just got uglier ...... 85kW.... Fuel use: From 6.3L/100km
... each ... tyre is only tasked with transmitting 21-and-a-quarter kilowatts to the ground. No 1: 85kw is at the crank. Power that goes to the wheels is much less due to drivetrain losses. No 2: Most AWD systems don't send exactly 1/4 of the power to each wheel. There's almost always some bias to the front wheels or the rear wheels. Also, isn't there a 1.6L or 1.8L option? No one will get the 1.2L and expect performance.