This will be the 10thgeneration Corolla and will sell only in saloon version as the soon-to-be-launched Auris will represent Toyota in the hatchback end of the small family car market.

But it would be a mistake to call this Corolla small - it is 13cms longer than the current model and 5cms wider. This gives more room inside and the boot is huge.

The first models to arrive will be built in Japan, but assembly will probably later move to Turkey.

Ireland will be one of the few countries where the Corolla name will survive and Toyota Ireland is delighted the name on which the fortunes of the company were built is being retained.

Toyota is enjoying a third year as the top seller in the new car market and next year plans to sell 5,500 Corolla models and 5,500 Auris hatchbacks.

Engine sizes will be similar in both. The Corolla retains the 1.4-litre 97 bhp petrol engine and the 1.4litre 90 bhp diesel. There will be no automatic transmission initially but later there is likely to be a multi-mode clutchless automatic transmission similar to that in the Yaris.

The Corolla will sell in three trim levels. Entry level Terra gets 15" wheels, nine airbags, remote central locking, heated mirrors and a six-speaker audio system.

The next level up, the Strata, adds foglights, 16" alloy wheels and wider tyres. The top of the range Luna gets air-conditioning, all-electric windows and better seat trim.

Prices for the petrol versions start at Euro20,750 for the Terra (up Euro450 on the current model). The Strata is Euro22,065 and the Luna costs Euro22,980 (up Euro880 on the current model). For the diesel options add Euro2,670 - which seems a very high premium to pay for the better fuel consumption figures. It will take a long time to win this money back at the pumps so petrol power will be the winner. It is a pity because the diesel does give a better drive, putting out 190 NM of torque compared to the petrol 130 NM output. In the outgoing model, 20% of sales were diesel but this is set to increase in coming years as emission levels take on greater importance because of government plans to alter tax charges.

Toyota has sold over 500,000 cars in Ireland over the past 34 years. In 1973, 143 Corolla models were sold. When the franchise was taken over by Tim Mahoney the following year sales grew rapidly. Over 30 million Corolla models have been sold worldwide. Toyota Ireland is forecasting 205,000 new car sales next year.