What did the Toyota Tercel turn into?
In brief, the Toyota Tercel’s successor was the Toyota Echo in many markets, and that line later evolved into the Toyota Yaris in several regions.
Origins and evolution of a subcompact staple
The Toyota Tercel was introduced in the late 1970s as a compact, fuel-efficient subcompact designed to compete in a growing segment. Over its life, the nameplate spanned multiple generations and regional variants before being phased out in favor of newer small-car platforms.
Milestones by generation provide a snapshot of its evolution, but model names and timing varied by market.
- Early generations established the Tercel as a practical, front-wheel-drive subcompact with efficient packaging.
- Subsequent generations refined fuel economy, safety features, and interior usability while maintaining a compact footprint.
- By the late 1990s, Toyota began transitioning customers to newer small-car platforms rather than continuing the Tercel line in several key markets.
These milestones illustrate how the Tercel served as a bridge between older compact cars and newer, more versatile subcompacts.
From Tercel to Echo: the replacement path
In North America and many other markets, Toyota replaced the Tercel with a newer subcompact known as the Echo. The Echo emphasized modern styling, better fuel efficiency, and improved interior packaging, aligning with Toyota’s global small-car strategy. Over time, the Echo name was gradually supplanted by the Yaris in several regions.
- The Echo was introduced as the Tercel’s successor in the North American market around the turn of the millennium (late 1990s to 2000s).
- In the mid-2000s, Toyota began rebranding Echo models in many markets as the Yaris, consolidating subcompact branding under a single badge in the United States and elsewhere.
- Some regions retained different naming or used Toyota’s Vitz/Starlet-based lineups, meaning the exact successor varied by country and era.
In summary, the Tercel’s successor path largely follows Echo, then Yaris in many markets, reflecting a global shift in Toyota’s subcompact strategy.
Regional variations and branding
North America
North America saw the Tercel phased out in favor of the Echo, with the Yaris later becoming the familiar subcompact badge in many markets.
Europe and Asia
In Europe and parts of Asia, the Tercel was gradually replaced by other compact models (such as Starlet- or Corolla-based hatchbacks), with the Yaris name emerging as the regional subcompact standard in later years.
The exact transition varied by country, reflecting Toyota’s regional product planning rather than a single global switch.
Legacy and takeaway
The Toyota Tercel helped Toyota refine its approach to entry-level transport by prioritizing efficiency, practicality, and compact design. Its retirement opened the door for newer subcompact platforms, ultimately culminating in the Yaris across many markets today.
Summary: The Toyota Tercel turned into the Toyota Echo in many markets, and that line eventually became the Yaris in several regions, marking a shift in Toyota’s subcompact strategy.
What replaced the Toyota Tercel?
the Echo
Production of the Tercel for the American market ended in 1998 as the model was superseded by the Echo. Production for Japan, Canada and some other countries continued through 1999. Taiwanese production continued until 2003.
What happened to Toyota Cressida?
So, the Cressida disappeared in 1992 and handed the luxury baton to Lexus. In its place, Toyota eventually introduced the Avalon as its flagship Toyota-badged car, but it was a front-drive V6 sedan instead.
When did Toyota quit making the Tercel?
The last Toyota Tercel was made in 1998 for the American market, as the model was discontinued and replaced by the Echo. Production for some other markets, like Japan and Taiwan, continued until 1999 and 2003, respectively.
- For the U.S. market: The final model year was 1998.
- For other markets: Production continued for a bit longer. For example, it was produced in Japan until 1999 and in Taiwan until 2003.
Why did Toyota kill off Scion?
Toyota discontinued the Scion brand due to a combination of declining sales, the inability to connect with its target younger demographic, and internal redundancy with the Toyota brand itself. The 2008 financial crisis impacted young buyers' ability to purchase new cars, and competitors like Hyundai and Kia offered more appealing value propositions, making it harder for Scion to succeed. Ultimately, Scion's models were no longer compelling enough and cannibalized sales from Toyota's own entry-level cars, so the brand was absorbed into the Toyota lineup.
- Failed to connect with target audience: Scion was created to attract younger buyers, but it struggled to win them over in significant numbers. The vehicles were not seen as compelling enough, and the target demographic's financial limitations also played a role.
- Internal competition: Scion's lineup became too similar to Toyota's own compact cars, such as the Corolla. Since the Toyota brand offered better resale value and brand recognition, consumers often chose the Toyota over a Scion, even when both were sold at the same dealerships.
- Intensified market competition: Other brands, particularly Hyundai and Kia, improved their offerings with better styling, longer warranties, and stronger marketing, increasing the competitive pressure on Scion.
- Product lineup issues: Some Scion models, like the FR-S, were praised by automotive press for their handling but lacked desired features like a more powerful engine option, which hurt sales. New models also failed to generate sufficient interest.
- Financial strain: Declining sales and the cost of maintaining the separate brand made it a financial burden for Toyota.
In February 2016, Toyota announced it was ending the Scion brand and folding the remaining models into the main Toyota brand, allowing them to continue to be sold as Toyotas.
