The second-generation Corona that appeared in April 1960 had originally been designed to be the first-generation model, but its release was postponed because another model was put together and given the Corona name. Sales of this first-generation Corona soon stagnated, however, as the Datsun Bluebird came out in 1959 to capture the public's attention. Accordingly, the release date of the second-generation model was pushed forward. Unlike its predecessor, the second-generation model featured regularly-proportioned straight contours. Its silhouette and parts of its external appearance were revealed in newspaper ads before the announcement date. The teaser campaign proved successful, and nearly 40,000 people gathered at the announcement venue in Tokyo. To improve ride comfort, a cantilever suspension with a leaf spring and coil springs was adopted for the rear wheels. Initially a 1,000 cc Type P engine was the only available power unit, although the Corona 1500 featuring a 1,453 cc engine with 60 PS was added to the lineup in March 1961, followed by the 1500 Deluxe model aimed at private owners in October 1961.

In addition, two other models were released with a 2-speed Toyoglide automatic transmission and the Saxomat automatic clutch, respectively, enhancing the ease of driving. With the introduction of the 1,500 cc model, the problematic rear suspension was replaced with a rigid axle semi-oval leaf spring system.
In July 1960, the 2-door Coronaline van was added to the lineup. The rear suspension was replaced with a widely used rigid axle semi-oval leaf spring system, and the payload capacity was 500 kg when carrying two passengers. The engine was a 997 cc 45 PS unit (Type P). In September, the Coronaline 2-passenger pickup with the payload capacity of 500 kg joined the lineup, sharing the engine and rear suspension with the light van model.