Introduced in early 2005, the second-generation Yaris (XP90) grew larger and adopted a more aerodynamic wedge silhouette. Engineered around a rigid safety cell, it achieved a 5-star Euro NCAP crash rating. The cabin retained a central digital instrument layout while upgrading sound dampening and interior plastics. Available body styles included three-door and five-door hatchbacks, alongside a four-door sedan variant marketed as the Belta or Vios in select regions. Engineers paid meticulous attention to structural body rigidity, minimizing noise, vibration, and harshness levels while enhancing cabin material quality.

Powertrains featured a 1.0-liter 3-cylinder (1KR-FE), 1.3-liter 1NR-FE with Stop & Start technology, 1.5-liter 1NZ-FE, and a 1.8-liter 2ZR-FE (133 hp) in the TS performance model, alongside the 1.4L D-4D diesel. Transmissions included 5- and 6-speed manuals, 4-speed automatics, and MultiMode (MMT) automated gearboxes. A 2009 refresh updated front lighting graphics and bumpers. XP90 production ran until 2013. 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.