Japan · Japanese-market first generation; released August 3, 1978

Toyota Tercel Hatchback Deluxe

Toyota's first front-wheel-drive family car did something unusual: it placed its engine lengthwise, then tucked the gearbox and final drive underneath so the front wheels could pull the car.

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Exterior · Photo shows Exact Toyota E-AL10 Tercel Deluxe model code; the file page does not independently establish that the displayed survivor was built in calendar 1978.. exact model; year not independently established
Toyota E-AL10 Tercel Deluxe (No.33) (22101611301).jpg · 先従隗始 · CC0
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A matching completed auction sale has not been verified for this exact year, body, trim, engine, transmission and market.

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A place in vehicle history

More than a set of wheels.

Toyota released the first Tercel and its Corsa sister on August 3, 1978. They were the company's first family cars with a front-engine, front-wheel-drive layout. The bodies were narrower than a Corolla, yet the 2,500 mm wheelbase was 130 mm longer. Toyota prioritized fuel economy and room, then improved the car before U.S. exports began in August 1979. This profile stays with the Japanese launch hatchback Deluxe, not the later 1.3-liter, automatic, or second-generation cars.

Look a little closer.

Tercel means peregrine falcon, but Toyota's first one was designed more for fuel-saving family travel than for diving at falcon speed.

Photos show an example of the model or generation. The pictured vehicle’s year, equipment, or modifications can differ from the specification described here.

A different route to front-wheel drive

The worldwide trend was already toward sideways engines in front-drive cars. Toyota instead mounted the 1A-U lengthwise and placed the transmission and final drive underneath. The company cited easier maintenance, smoother shifts and freedom from torque steer as advantages of this unusual arrangement.

Source: Toyota 75 Years — First Tercel Hatchback lineage ↗

Fuel economy first, styling second

Toyota's development history says engineers gave fuel efficiency top priority, even accepting a narrow shape that Japanese buyers initially received coolly. After improvements, American buyers praised the room and economy; exports began in August 1979 under the Corolla Tercel name.

Source: Toyota 75 Years — Development of Front-Wheel-Drive Vehicles ↗

Where these facts come from

Selected facts checked for this edition. Some source pages link to broader model families. Last reviewed October 1, 2026.

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