2026 Toyota Corolla.

The Toyota Corolla is due for an all-new generation next year as a 2026 model. The illustration above shows what that new Corolla generation could look like.
As usual, this is way too early to guess anything. However, Toyota did mention the development of new engines a few months ago. A new 1.5 Liter and a larger 2.0 Liter.
These new engines will mostly be used as part of new Hybrid powertrains since Toyota is even floating the idea of offering only hybrids in the US. On top of their current bZ4x and the upcoming 2 new 3-row EV SUVs.
The new 1.5 Liter is about 10% smaller than the engine it will replace and will be more fuel efficient as well as more powerful.
A new 1.5 Turbo was also shown at the conference and it was mentioned to be 20% smaller than the current 2.5 Liter. Which could mean it will soon replace the much larger 2.5 Liter used in many Toyota models. A 2.0 Liter Turbo was also displayed and compared to the current 2.4 Liter Turbo.
These are weird comparisons since of course a 1.5 Liter and 2.0 Liter engines will be smaller and more efficient than a 2.5 Liter or 2.4 Liter. It seems Toyota really wants to make sure people know they are still developing new ICE engines, even if these will mostly be used in new Hybrid powertrains. These new engines will also be used in various Mazda and Subaru models. Again, as part of Hybrid powertrains.
The Toyota Corolla is still one of the best-selling cars in the world, with many versions sold in various markets. The US will probably still get the sedan and hatchback body styles currently offered. And these new engines will be part of the package.
It will be interesting to see if the next Corolla will become a hybrid-only model, like the e2025 Camry in the US.