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A pre-production Toyota Corolla Hybrid is shown, prior to its availability in mid-2016. Toyota Australia

One of Australia’s most favorite cars is going green, as a new hybrid variant of Toyota Corolla will be rolling off in the middle of the year.

The Toyota Corolla, which has been in the Australian automotive market for 50 years, has been the Japanese carmaker’s best-selling car, with more than 1.34 million units sold to local customers. Toyota hopes to continue building on the nameplate’s success by adding a hybrid variant. In 2015, Australia's best-selling hybrid vehicle is Toyota Camry with close to 6,000 sales.

"Corolla hybrid hatch will offer all the advantages of Australia's favourite car, coupled with the hybrid system's established performance, reliability, durability and exceptionally low running costs,” said Toyota Australia's executive director sales and marketing Tony Cramb.

Toyota said the biggest advantage of its new hybrid hatch is its fuel efficiency. It is designed to consume one-third less fuel than the existing variant, but generate the same power with its Multidrive S automatic transmission. The Toyota Corolla 1.8-litre Hybrid will be fitted with a Euro 5 compliant 73kW 1.8-litre petrol engine mated to a 60kW electric motor and driven through a continuously variable automatic transmission.

With the new vehicle’s selectable electric-vehicle mode, owners can drive up to two kilometres at speeds of up to around 45km/h with zero tailpipe emissions, depending on the level of battery charge and driving conditions.

Fans of the Toyota Corolla nameplate can also look forward to its premium features such as satellite navigation, Toyota Link connected mobility, dual-zone automatic air-conditioning and bi-LED headlamps.

The Toyota Corolla 1.8-litre Hybrid, which will be launched as a well-specified single grade, is the fifth Hybrid Synergy Drive offering of the company. Other Toyota hybrid cars include the Prius, Prius c, Prius v and Camry. Cramb said that there is enormous potential for the hybrid Corolla in Australia, as shown by its success in other markets. In Western Europe, hybrid versions account for more than 50 per cent of all Auris, or Corolla, sales.