A little background: the GR Yaris may have Toyota’s sub-compact hatchback’s badge on the back, but in reality, it shares very little with its decidedly more pedestrian sibling. In the quest for a World Rally Championship challenger, Toyota and its go-fast Gazoo racing division opted to develop the GR Yaris from the ground up as a rally car first, and then set about making it roadworthy second.

Except for the headlights and sideview mirrors, the GR Yaris is downright unique. The platform uses bits of the Corolla, while the doors, hood, and tailgate are made of aluminum. The roof itself is made of lightweight carbon fiber, while the roofline has been lowered as much as possible to improve airflow. The fenders have been flared out to fit wider, sticker tires. Press down on the bumpers, and you’ll notice that there’s some give when pressed—a sign that Toyota’s cut as much weight here as possible. The resulting car isn’t one that can be considered pretty in the normal sense. Instead, it looks every bit like a performance machine hellbent on conquering courses and racetracks.

Perfect then that it’s got the world’s most powerful production three-cylinder engine. Displacing 1.6 liters, the G16E-GTS makes 280 horsepower and 390 Nm of torque. Admittedly, it switches on with little drama. Yes, there’s a bit more rumble and bass going on as the “GR” logo flashes on the instrument cluster, but it’s, sadly, artificially augmented thanks to the Active Sound Control system. Moreover, when the engine’s cold, it drives, dare I say it, a little ordinary.

Once the “warm up” message disappears from the gauge cluster, the GR Yaris turns into a different machine. It’s impossible not be impressed by its raw pace. It pulls with real enthusiasm, even from low down the rev range and the accompanying psssssht from the wastegate adds to the drama. The official 0 to 100 km/h figures says 5.2 seconds—faster than the Honda Civic Type R—but more importantly, it feels way, way faster. It’s not as raw or raucous as an Elantra N, but it’s no less fun. It is, the product of being lightweight and all that.

The accompanying 8-speed automatic is also tuned for fun. While it’s true that the experience isn’t as pure as a stick shift, but it allows you to put more bandwidth on nailing apexes and braking points. Even on the open road, the GR Yaris has this affinity with changing direction—something it does so with delight. Plus, if you’re going to daily this, you could argue it’s less taxing on the left foot too. Its low-speed refinement, arguably, could be better, but at least it’s not as clunky as a dual clutch.

The impeccable drivetrain setup helps shine focus on the best part of the GR Yaris: the drive. Central here is the all-wheel drive system. Toyota claims it’s the lightest system on the market, but it’s full-featured. It’s got an aluminum central transfer case and a controllable power split with three modes: Normal, Track, and Gravel. There’s even an “old-fashioned” handbrake that, not that we’ve tried it, disconnects the drive to the rear wheels when yanked on the move, you know, for drifts.

Ultimately, what the GR-Four system does is that it allows the driver to enjoy every stage of a corner. It’s not just about carrying speed in and managing power on the way out. You can chuck the GR Yaris into corners as hard as you like, and as soon as you get on the power, you’ll feel it hook up and slingshot you out of the bend. It gives you the confidence to explore the car’s limits in a way you might not in a larger, more intimidating performance car.

What’s more, despite its performance-oriented nature, the GR Yaris doesn’t lose composure over less-than-ideal roads. It soaks up lumps and bumps without breaking a sweat, allowing you to carry astonishing speed regardless of the road surface ahead of you. The steering too is well-weighted and reassuringly linear in its action. When cruising, it’s not quite as refined. There’s plenty of road noise and the automatic gearbox is noticeably louder than your typical as it clunks and whirrs away beneath the center console.

Just as its exterior suggests, the GR Yaris is more function than form inside. The front seats are figure-hugging with excellent manual adjustment, while the steering wheel and pedals are all properly aligned for the best possible ergonomics.

The purposeful nature comes into full view with the controversial blocky dashboard that seems to envelop the driver. It’s not pretty and it’s downright plasticky, but it’s all about improving the overall usability and visibility inside the GR Yaris. In fact, it does give a good view of the car’s immediate surroundings barring the rear. That heavily tapered roofline, tiny rear window, and lack of a rear wiper mean limited view out the back. Thankfully, there’s a rearview camera, albeit the display is low-res. The rest of the interior though feels solid enough though.

The graphics of the digital gauges is simple and clear, but the infotainment leaves a lot to be desired. It’s horridly prehistoric with slow responsiveness and dated graphics. It has Apple CarPlay and Android Auto, but the cable placement, on the head unit itself, is just horrid. Yes, there’s wireless support, but it’s just as laggy. Also, the standard speaker system sounds feeble.

Most of the efforts in making the GR Yaris habitable went to the front seats, but remarkably, the rear seats are alright for short trips for short-legged Filipinos. For as long as all passengers are willing to compromise a bit of leg room, fitting four adults is entirely possible. My 170 cm stature has no problem clearing the roofline for as long as the front seat is moved a bit forward. That said, getting in and out can be challenging with the front seat’s clunky tilt-and-slide mechanism. Space for stuff is also quite limited all around with not much cubby holes to go by, while the cargo hold itself is tiny. At least you can drop the rear seat in a 60/40 split revealing a continuously flat compartment. There’s no space for a spare tire as the 12-volt battery and Intercooler Water Spray reservoir are located beneath it.

However you put it, the Toyota GR Yaris is truly a special machine. Small and light with punchy dynamics and a gusty motor, it’s a compelling drive. More importantly, it does an outstanding job of prioritizing the drive. It’s pretty elastic too when it comes to its talents in that it’s both a hoot, and despite its packaging limitations, practical. When it comes to pure entertainment value, this one’s worth the four year wait.