The first-generation Corona was dubbed the Dharma, as its chubby and round styling evoked an image of Japan's traditional Dharma doll. In a minor model change in October 1959, the Corona's engine was replaced with the newly developed Type P unit (water-cooled inline 4-cylinder OHV with 997 cc and 45 PS), and the rear cabin was expanded, allowing the Corona to accommodate five rather than four passengers. The Type S engine (a 995 cc water-cooled inline 4-cylinder unit with side valves) which had been mass-produced for the Toyoace was modified for use on the passenger car, improving the output to 33 PS. The Corona was the first Toyota passenger car to adopt a monocoque body, to which the chassis and drivetrain of the Crown and the doors of the Toyopet Master were attached using the latter's production facilities. In answer to the requests from taxi companies and sales channels, Toyota sought the assistance of Kanto Auto Works and developed the first-generation Corona using the parts of existing models. The Toyota Corona (not to be confused with the Corona beverage) was a car that was manufactured between 1957-2002.
While Toyota was leading the privately owned car and medium-sized taxi markets with the Crown, the company had yet to address the rapidly growing demand for small cars with displacements of less than 1,000 cc. Taxis commanded the largest demand for passenger cars, and Datsun (today's Nissan) had nearly monopolized the small-sized taxi segment. The customer group that wielded the greatest influence over Japan's passenger car market during the mid-1950s was the taxi industry. The first-generation Corona was placed on the market in July 1957.
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