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The Second Generation Paseo was the first to be sold in the UK. US, Japanese and Australian markets recieved the Gen1 in small numbers, but it wasn't untill 1996 when the UK saw the Paseo name.

The Paseo was an all new sports coupe offered by Toyota to sit between the Corolla and Celica in the lineup. It was a smaller, cheaper to run, more practical version of the Celica, and was a sporty, low rooflined coupe version of the Starlet, of which it shares many parts. This was meant to be a big hit with the European market, and sales were opened to most countries, as aposed to the Gen1 only being sold in Japan, US and Australia.

The Paseo was released in March 1996 with two models, the ST (Entry Level) and Si (Flavour of Sportiness). Head Sales Director of Toyota (in 1996) predicted more than 15,000 units sold within the first year of release in the UK. Sales just nudged above 2000 over the stretch of the 2.5 years. The Paseo was knocked from these expectations when it came to rivals;

Vauxhall Tigra - Though a year old (released 1995) the Tigra has a bigger engine, "better" styling (I would emphasize that being a Paseo nut..) and had a more stylish and comfortable interior. Not only this, but it was slightly more practical too. Price was similar to the Paseo at

Honda Civic Coupe - This was now an old flame being re-lit. By 1996 the Civic Coupe got a facelift and still looked dull, even compared to the Paseo's styling, and many magazine tests suggest this. On the other hand, it was bigger, more practical and had a comfortable ride, but was still by no means what you would call 'Sporty'. It sold better than the Paseo due to being cheaper, basically.

Renault Megane Coupe - This didn't arrive on the Paseos tail until 1997 but when it did, it hit hard. The Megane offered french styling taste and practicality to compete. It was well priced for the equipment you got, and also came in Convertible form, something the Paseo didn't in the UK.

Ford Puma - Again not being an immediate rival, it stung the Paseo hard. The lairy sportyness of the, what seems to be, Fiesta Coupe meant it attracted the eye. The interior was well packaged and stylish, aswell as having practicality under its belt. The Ford Puma, in respect, killed the Paseos sales for the UK.

Toyota responded to the lairyness of the Puma and the bright coachwork of the Megane with the Paseo Galliano in late 1997. A Canary Yellow Paseo with an optional front lip as standard. It also came with 15inch alloy wheels and low profile tyres. To add flavour, it had tropicana side decals designed by John Galliano. This was a limited run of 50 cars to try and boost sales and add something to the range. It unfortunately did not work and early 1998 saw the end for the Paseo in the UK.

The Entry Level Model, ST, was very well equipped for a base model. Other European countries recieved low spec entry level Paseos, whereas the ST, for the UK, came with Remote Central Locking, Electric Windows, Electric Mirrors, Tilt/Remove Sunroof and sporty wheeltrims, aswell as a wide range of optional equipment to enhance the styling.

The Si, the higher spec'd model, on top of that of the ST, had 14" Griffin alloy wheels, Colourcoded rear boot spoiler with integrated third brake light

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