Reflecting the changing values and lifestyles of consumers, station wagons began to attract public attention around 1980, giving rise to such models as the Nissan Sunny California (1979) and the Honda Civic Country (1980) that competed in the price range of the Corolla family. The first wagon version of the Corolla was introduced in May 1982, using the commercial-use van as its base and offering backseat ride comfort comparable to that of a sedan. Its interior and exterior accessories also came close to that of the Corolla sedan.

The wagon was fitted with the 4K-U (II) engine with a displacement of 1,290 cc and an output of 74 PS. The steering system was changed to the rack-and-pinion used in the sedan, though the van's rigid axle leaf spring rear suspension was retained to withstand heavy load.