Why did they discontinue Toyota Yaris?

In brief, Toyota stopped selling the Yaris in key markets like the United States because demand for subcompact cars has weakened while consumer preferences tilt toward crossovers and electrified options. In many other regions, the Yaris nameplate persists in evolved forms, such as hybrid variants or the Yaris Cross small SUV.

To understand the decision, it helps to consider how market dynamics, profitability, and regional product strategy shape Toyota’s lineup. A single market’s move does not reflect a global collapse of the Yaris, but rather a tailored adaptation to local demand, regulatory environments, and competitive pressures.

Factors behind the discontinuation in some markets

Several forces converged to push Toyota away from maintaining a broad Yaris lineup in all regions. The following factors help explain the move.

• Shifting consumer preferences toward SUVs and crossovers, which offer more interior space and versatility than subcompact hatchbacks.


• A strategic emphasis on higher-margin models, particularly small SUVs and electrified vehicles, to improve profitability and meet emissions goals.


• Rising costs and complexity of meeting evolving safety, fuel efficiency, and technology requirements for tiny cars across multiple markets.


• Platform and branding consolidation, with Toyota leveraging shared platforms for other models rather than maintaining a standalone Yaris lineup everywhere.

Together, these factors help explain why the Yaris exited some markets while remaining available in others under updated forms.

Where the Yaris remains and how the lineup is evolving

Europe and other regions where Yaris persists

In Europe and many other regions, the Yaris nameplate continues, often paired with hybrid powertrains. The range has also evolved with the Yaris Cross, a small SUV variant designed for urban driving and stricter emission standards, allowing the Yaris family to stay relevant in markets that value efficiency and compact practicality.

North America: transition to alternative compact options

In the United States and Canada, the Yaris was discontinued after the 2020 model year. Toyota redirected focus toward Corolla-based hatchbacks and other compact/CUV options, aligning with regional demand trends and profitability considerations.

Asia-Pacific and Latin America

In parts of Asia-Pacific and Latin America, the Yaris name remains part of regional strategy, often offered with hybrid variants or integrated into broader small-car and crossover offerings, reflecting local market preferences and regulatory contexts.

Summary

The fate of the Toyota Yaris illustrates how automakers tailor product lines to local demand, profitability, and policy environments. While some markets have retired the Yaris in favor of SUVs and electrified models, Toyota keeps the badge alive where it makes sense, updating the lineup with hybrids and crossover variants to fit urban, efficiency-focused driving across different regions.

What is Toyota replacing the Yaris with?

Toyota Is Replacing the Old Yaris with a Rebadged Mazda 2 Hatchback. Like the current Yaris sedan, it's looking like the 2020 Yaris hatch will also be built by Mazda.

Why did Toyota discontinue the Yaris?

Toyota discontinued the Yaris primarily due to declining sales of small cars as consumers shifted to larger SUVs and crossovers. Additionally, the cost to meet new safety and emissions regulations for a new generation made the vehicle less profitable, especially in the competitive U.S. market where sales had already plummeted. Toyota is also focusing resources on its hybrid and electric vehicle development, with some markets introducing the smaller Yaris Cross SUV as a replacement.
 

• Declining market demand: The overall popularity of subcompact cars waned as many consumers in markets like the US began preferring larger vehicles like SUVs and crossovers. 
• Profitability concerns: Making a new-generation Yaris compliant with modern safety and emissions standards would have made the entry-level model too expensive to build profitably. 
• Strategic shift: Toyota redirected its resources and strategy towards hybrid and electric vehicles and larger models. In some regions, this meant launching the Yaris Cross SUV to fill the gap left by the discontinued Yaris sedan and hatchback. 
• Model platform changes: The US market Yaris had been a rebadged Mazda2 for several years, indicating a lack of investment in its own subcompact platform. 

What was the worst year for a Toyota Yaris?

For this reason, CarComplaints gave the 2008 Toyota Yaris the distinction as the worst model year. The 2008 model suffered from peeling clear coats and paint like the previous year. Despite proper maintenance and storage, disappointed owners have reported severe peeling of the coat and paint.

What is the common problem with Toyota Yaris?

Common problems reported for the Toyota Yaris include issues with the automatic transmission (especially older models), power steering failure, air conditioning problems, and paint peeling, particularly on the roof and hood. Other frequently cited issues are engine and transmission problems, such as engine mounts, clutch slip, and rough idling. Some models have also been subject to significant recalls, including issues with airbag inflators and steering components.
 
This video discusses common problems and weaknesses of the used Toyota Yaris (I generation): 59sMasterCarsProYouTube · Jul 20, 2023
Powertrain 

• Automatic Transmission: Can slip or have issues shifting, especially in older models, sometimes linked to a lack of regular fluid changes. 
• Clutch: Slipping is a common issue, often indicated by high RPMs without corresponding speed, a burning smell, or a change in pedal height. 
• Engine Mounts: Some owners report vibrations from damaged engine mounts. 
• Rough Idling: Can occur due to dirty throttle bodies or injectors. Cleaning and replacing spark plugs can help. 
• Oil Consumption: Some older models, particularly pre-2015, may burn more oil than expected. 

Steering and suspension

• Power Steering: Malfunctions have been reported, leading to steering difficulties. 
• Steering Wheel: Some owners report a loose or vibrating steering wheel, or a noisy steering system. 
• Wheel Hubs: Noise, such as squealing, has been linked to faulty front and rear wheel hubs. 

Electrical and accessories

• Air Conditioning: Malfunctions, such as leaks or the system not turning on, have been reported. 
• Airbags: Faulty inflators have been the cause of a major recall. 
• Headlights: Malfunction of headlight beams has been noted. 
• Media Computer: Issues with the radio, GPS, and Bluetooth have occurred. 
• Alarm System: Problems with alarm malfunction have been reported. 

Body and paint

• Paint Peeling: A common problem is clear coat peeling, especially on the roof and hood. 
• Scratches: Scratches can appear on the dashboard, around door locks, and in the trunk. 

You can watch this video to learn about common problems of the Toyota Yaris iA: 59sSimple Mechanic AdviceYouTube · Dec 14, 2024