It would make more sense for Toyota to upgrade the C-HR so that it can take on the Fiesta ST but it looks like Toyota has eyes on their Yaris.
According to Toyota, they want to reflect what to make sure that the capability of their rally cars is reflected in their product. We all saw the new Yaris WRC rally car earlier this year and it looks like Toyota might be planning to use that to come out with a high performance Yaris.
There is not a whole lot of details about the vehicle right now but it is believed that the high-performance Yaris could be coming in with a version of the 1.5 liters turbicharged engine that Toyota used in the C-HR at the Gazoo Racing.
It might also come with an all-wheel drive system which will put it right in the path of the Ford Fiesta ST.