The Toyota GR Corolla has been named 2026 Car of the Year by a panel of 60 automotive journalists, beating out the BMW M2 and Porsche Cayman for the coveted award in a celebration of affordable performance driving.

Why It Won

At $36,000, the GR Corolla offers a turbocharged 300-hp three-cylinder engine, AWD, a manual transmission, and genuinely thrilling driving dynamics that judges said rivaled cars costing twice as much.

Significance

The award highlights a resurgence in affordable enthusiast cars at a time when the average new car costs $46,000 and most automakers are abandoning manual transmissions.