It’s tough for car makers to build a car which is better than the one it replaces – but even harder when that car was the world’s biggest seller.

Toyota has sold a staggering 30 million Corollas over the last four decades, and the Auris is the car the Japanese giant is pinning its hopes on to become the planet’s biggest car maker.

So with big plans for its Ford Focus rival, Toyota chose the challenging terrain around Barcelona to launch the Auris to the media.

Naturally, the first thing to do was tell us its pronounced ‘Ow-ris’.

At a first glance, the Auris looks like a slightly more stylish version of the Corolla. Sporting Toyota’s corporate front end – which first appeared on the new Yaris – the Auris design is smart, if not revolutionary. But it won’t alienate the traditionally conservative buyers who loved the Corolla.

Toyota AurisIt’s a similar story at the rear, with a rump reminiscent of the Corolla.

But it’s the interior which is winning praise from all who have driven it.

Dominated by a ‘bridged centre console’, which slopes down from the dashboard housing the raised gearstick and handbrake, the dashboard is the first small family-sized Toyota to have a European-feeling cabin.

Toyota design chiefs say the centre console is influenced by the flying buttresses at Notre dame cathedral (they’re the bits which poke out like supporting legs from old religious buildings). It’s all a bit far fetched, but it does mean the gearstick is in the perfect position, falling straight to hand, and provides a handy storage space for coins.

The dials are clear, especially at night when they emit a bright orange light and both the speedo and rev counter feature smaller dials which provide details on fuel levels, engine temperature and distance travelled.

Over two 100-mile test routes, we found the seating position to be excellent, with superb all round visibility.

The mid-range T3 models we tested – the only trim level to be available with all engine configurations – are equipped with nine airbags, a CD and MP3 player with controls on the steering wheel, four electric windows and a fully adjustable steering column.

Thankfully, given the twisty and unforgiving test routes, all cars had sat-nav installed, which is the best we’ve tried so far. Clear mapping and directions are supplemented by a brain which is quick to correct wrong turns, and well worth the £1,500 asking price.

The interior space is exceptional too. Toyota has worked hard to increase the amount of room, without making the overall dimensions bigger than necessary. There’s bags of headroom, and legroom in the rear is on a par with the much larger Avensis, helped in part by a flat floor allowing three adults to sit in reasonable comfort.

There’s an increase in boot space too. At 354 litres with the rear seats up, the Auris has a useful 16 litres more than the Corolla. Space increases to 761 litres with the seats folded.

We drove the 2-litre diesel and 1.6-litre petrol versions, the latter equipped with Toyota’s MultiMode manual-automatic gearbox.

The MultiMode ‘box takes a little getting used to, but once we got our heads around the fact it isn’t a normal automatic, it could be driven smoothly.

Flicking the gearstick into ‘D’ for city driving is a wise move, but for the steep roads on our Catalan test route, we used the steering wheel-mounted paddles to shift gears.

Unlike an automatic, where you keep your foot on the accelerator until you need to stop, MultiMode requires you to lift off as you would when driving a manual.

We’ve tried these kinds of gearboxes before, with varying results, but the fifth generation version in Auris is just about the best yet, leaving behind its jerky predecessors.

On the move, our MultiMode-equipped 1.6-litre handled well, with positive-feeling steering and plenty of grip. Only an unexpected lorry causing an impromptu swerve onto the roadside gravel, caused the taut chassis to become twitchy.

Fortunately the traction control – which is optional on all models – kept us from heading down a steep drop.

With a relatively light engine up front, the 1.6 feels agile and alive on bends, and despite revving hard in fifth gear at motorway speeds (around 4,000rpm at 70mpg), it never becomes thrashy or uncomfortable.

In choosing the MultiMode gearbox – a conventional manual isn’t planned – Toyota has been able to make its self-shifter more economical than the manual version, which is unusual. Official stats claim an average fuel consumption of 33.2mpg for the MultiMode, against 31.4 for the manual.

For the record, Toyota says it will reach 62mph from rest in 12.1 seconds and on to a top speed of 118mph.

Toyota AurisWe also tried the 2-litre diesel, which despite its D4-D 130 moniker delivers 124bhp but an impressive 221lb/ft of pulling power between 2,000 and 2,800 rpm.

Toyota chiefs say this model will be its strongest seller, with a large number of them going to fleets as hire or company cars.

The 2-litre diesel is quite clattery at low speeds, although it becomes almost silent in a motorway cruise, leaving just a small amount of wind noise to break the peace.

With a large amount of pulling power, the D4-D 130 allows the driver to ‘point and squirt’, meaning changing motorway lanes or pulling from side turnings is easy, with a decent reserve of power at most engine speeds.

The downside of the bigger engine is it blunts the handling very slightly, something which only becomes apparent when driving two versions back-to-back.

Although far better than the Corolla, in this guise at least, handling falls short of the Ford Focus benchmark.

The Auris scored a maximum five stars for occupant protection in the EuroNCAP crash tests, thanks to nine airbags – front and side ‘bags for the driver and passenger, full-length curtain airbags, and one for the driver’s knee – whiplash-reducing front seats, ABS and brakeforce distribution, and optional stability control.

Built at Toyota’s plant in Burnaston, Derbyshire, the Auris has been designed in Europe, for Europe – and it shows.

Gone are the sober lines of the past, and in comes a chic new look for the brand, which will soon become the world’s biggest car maker.

Couple that with Toyota’s superb reputation for reliability, and the Auris should give the Focus, Peugeot 307 and Volkswagen Golf a few sleepless nights.

Key Facts

Model tested: Toyota Auris 1.6 T3 MultiMode & 2.0 D-4D 130
On the road price: £14,045 & £15,595
Price range: £11,995 – £18,795
Tested: January 2007
Road tester: Stuart Milne