The name is all marketing.
Just like BMW can have the 3series, the M3, the X3 or Mercedes-Benz can have the A, CLA and GLA.
Dragging the Corolla name into other segments is a way to draw original buyers(corolla) into a brand new model while saving on branding should it not work out. Should it sell, they can spin off the new vehicle.
I think you are mistaken, the SUV is a Rav4, not a corolla. The rav4 is a totally different vehicle.
The sedan, hatchback and station wagon versions of the corolla are all basically the same car, but with a different rear portion. There’s no reason to use a different name becayse it’s basically the same vehicle with a differently shaped back. They formerly called the hatchback corolla a “Toyota Matrix,” but it was still basically just a corolla with a different trunk, so they just call it a corolla hatchback now. Lots of compact cars from numerous manufacturers have sedan and hatchback/wagon versions of the same car with the same name. There’s no reason to have a different name, when it’s the same car, with a different hatch on the back.
The rav4 is a totally different vehicle, it is the small SUV.
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