Released in late 2011, the third-generation Yaris (XP130) departed from rounded aesthetics in favor of sharp, angular body styling featuring Toyota's prominent trapezoidal front grille. The interior redesigned the instrument panel, returning speedometers to the driver's direct line of sight rather than the dashboard center. Offered in three- and five-door hatchback formats, the line introduced the Yaris Hybrid in 2012. Engineers paid meticulous attention to structural body rigidity, minimizing noise, vibration, and harshness levels while enhancing cabin material quality. The refined chassis architecture delivered excellent ride comfort and predictable handling characteristics across both urban streets and high-speed highways.

Engines featured 1.0-liter, 1.33-liter, and 1.5-liter petrol units, a 1.4-liter D-4D diesel, and the 1.5-liter Hybrid Synergy Drive (99 hp total). A limited-production performance variant, the GRMN, incorporated a supercharged 1.8-liter engine delivering 212 hp. Transmissions included 5- and 6-speed manuals, Multidrive S CVTs, and e-CVTs. Following comprehensive updates in 2014 and 2017, XP130 production ended in 2020. High levels of active and passive safety were corroborated by outstanding crash test results and comprehensive driver assistance technologies. Thanks to exceptional mechanical endurance and robust powertrain engineering, this generation earned global acclaim across all major automotive markets.