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Why did they stop making Celica?

Toyota ended Celica production after the 2005 model year, with final builds wrapping up around 2006 in many markets. The decision reflected weak sales for a niche two‑door sport coupe, a rising emphasis on higher‑margin SUVs and hybrids, and a broader corporate strategy to focus on more profitable platforms.


A brief look back at the Celica's history


The Celica arrived in 1970 as a lightweight, affordable two‑door sports coupe designed to attract younger buyers. Over seven generations, it evolved from a simple, small coupe into a range that included performance variants and rally‑inspired models. The pinnacle for many enthusiasts was the GT‑Four rally homologation version in the 1990s, which boosted the Celica’s performance credentials with all‑wheel drive and turbocharged power. By the early 2000s, however, demand for niche two‑door coupes had softened, and the Celica’s appeal waned against shifting market tastes and a crowded Toyota lineup.



  • Launch in 1970 as a compact two‑door sport coupe

  • Evolution through several generations with performance variants

  • Rally‑inspired GT‑Four variants in the 1990s

  • Final production in 2005–2006 as sales declined


Today’s market trends and Toyota’s evolving product strategy helped frame the Celica’s exit as part of a broader shift toward more versatile and profitable vehicles.


Reasons behind the discontinuation


Below are the central factors that contributed to ending Celica production. The list summarizes the strategic and market dynamics that faced the model in its final years.



  • Declining sales for two‑door sport coupes and an aging product lineup

  • Shift in consumer demand toward crossovers/SUVs and practical hatchbacks

  • High development and production costs for new generations meeting evolving safety and emission standards

  • Internal competition within Toyota for limited budgets and engineering resources

  • Limited global demand and regional differences that made a universal Celica strategy less viable

  • Strategic focus on hybrids, electrification, and higher‑margin vehicles

  • Lack of a clear, cost‑effective successor that fit Toyota’s global portfolio at the time


Taken together, these factors underscored a corporate calculation: invest where profitability and growth prospects were strongest, even if it meant stepping away from a beloved but niche model.


Legacy and aftershocks


The Celica left a lasting imprint on Toyota’s sport‑car heritage, especially through its GT‑Four variants and its reputation for lightweight, driver‑focused dynamics. While there was no direct successor in the Celica line, Toyota’s later sport‑coupe efforts aimed to recapture the same spirit in different packaging. The most prominent pivot came with the 2012 introduction of the Toyota 86 (later marketed as the GR86), a joint project with Subaru that embraced rear‑wheel‑drive dynamics and a purist two‑door ethos, signaling Toyota’s continued interest in lightweight, performance‑oriented coupes even as the Celica era ended.


Notable variants



  • Celica GT (base performance variant)

  • Celica GT‑S (higher trim level with enhanced equipment)

  • Celica GT‑Four (turbo, all‑wheel drive rally homologation model)


These variants illustrate the Celica’s range—from everyday fun to serious performance—and help explain why the model remains a memorable part of Toyota’s history for enthusiasts and collectors.


Summary


The Celica’s discontinuation stemmed from a mix of shrinking demand for two‑door sport coupes, rising costs to develop a competitive new generation, and a strategic shift toward more profitable, versatile vehicles like SUVs and hybrids. Its legacy persists in the rally‑inspired GT‑Four variants and in the enduring appeal of Toyota’s later efforts to deliver driver‑focused sports coupes, notably the Toyota 86/GR86, which carries forward the spirit of light, engaging Toyota coupes into a new era.

Kevin's Auto

Kevin Bennett

Company Owner

Kevin Bennet is the founder and owner of Kevin's Autos, a leading automotive service provider in Australia. With a deep commitment to customer satisfaction and years of industry expertise, Kevin uses his blog to answer the most common questions posed by his customers. From maintenance tips to troubleshooting advice, Kevin's articles are designed to empower drivers with the knowledge they need to keep their vehicles running smoothly and safely.