Why did Toyota get rid of the Avalon?
The short answer: Toyota ended the Avalon because demand for large sedans faded as buyers shifted toward SUVs and crossovers, making the model unprofitable and less aligned with the company’s focus on high-demand and electrified vehicles.
Historically, the Avalon served as Toyota’s flagship sedan in North America, offering spacious comfort and a premium feel above the Camry. However, rising popularity of SUVs and trucks, along with the need to optimize profitability and product development, pushed Toyota to rethink its lineup. In this context, the Avalon’s relatively low sales volume versus popular crossovers led to the decision to retire the model and reallocate resources toward segments with stronger demand and better margins.
Market forces behind the decision
Several factors shaped Toyota’s move to end Avalon production. Here are the key drivers observed in the market and reflected in corporate strategy:
- Shifting consumer demand: U.S. shoppers increasingly preferred SUVs and crossovers over traditional large sedans.
- Sales and profitability: Avalon sales trended well below Camry and other core models, limiting economies of scale and overall profitability.
- Product portfolio strategy: Toyota prioritized SUVs and electrified options to align with broader electrification goals and customer preferences.
- Platform and development costs: Maintaining a high-end, low-volume flagship sedan with an aging design became less efficient as new platforms and tech evolved.
- Strategic resource allocation: Resources were redirected toward best-sellers and growth areas, including hybrids, crossovers, and trucks.
In practical terms, the decision reflected both a shrinking demand for full-size sedans in the U.S. and Toyota’s plan to channel investment into segments with stronger growth potential and future technologies.
What Toyota did instead of Avalon
With the Avalon discontinued, Toyota leaned on the Camry for customers seeking a spacious, refined midsize sedan, while expanding SUV lines and electrification options to fill the gap in the lineup. The company increased its hybrid offerings and continued investing in electrified technologies, signaling a strategic shift toward SUVs and clean-power alternatives as the centerpiece of its North American lineup.
Officials characterized the move as a natural transition in a market where large sedans have become niche products. The Avalon's retirement does not reflect a failure of the vehicle’s quality or reliability, but rather a response to evolving consumer tastes and a focus on a more profitable, future-oriented portfolio.
Timeline and current status
In the United States, Toyota confirmed that the Avalon would end production after the 2022 model year, with the final units going to customers as inventories allowed. Since then, the brand has continued to emphasize the Camry, as well as its expanding SUV and hybrid lineups, as the central components of its North American strategy.
Summary
The Avalon’s retirement stems from a convergence of market trends and corporate strategy: a steep decline in demand for large sedans, a stronger consumer pull toward SUVs and crossovers, and a shift of resources toward electrified powertrains and high-demand models. Toyota opted to prioritize the Camry for sedan buyers and to bolster its SUV and hybrid offerings, aiming for higher sales volumes, better profitability, and alignment with a broader electrification roadmap. The move reflects a broader industry pattern rather than a verdict on the Avalon’s quality.
Why did Toyota discontinue the Avalon?
Several factors contributed to the discontinuation of the Toyota Avalon. The primary reason is the declining sales of sedans as consumers increasingly prefer SUVs and crossovers, which offer greater versatility and perceived value.
Did Toyota make a 2025 Avalon?
No, there is no 2025 Toyota Avalon. Toyota discontinued the Avalon in 2022 in North America, and the Toyota Crown has effectively replaced it as Toyota's full-size flagship sedan. While some online sources mention a hypothetical or imagined 2025 model, there is no production version available for purchase.
You can watch this video to see a comparison between the Toyota Crown and other sedans: 56sAuto Buyers Guide | Alex on AutosYouTube · Jul 15, 2022
- Discontinued in 2022: The Avalon was officially discontinued in the United States in 2022.
- Replaced by the Crown: The Toyota Crown was introduced as the new flagship sedan for the brand, though it is a hybrid-only model.
- No 2025 model: There is no official 2025 model year for the Avalon, and any mentions of one are either speculative or refer to a different vehicle, such as the Crown.
What is replacing the Toyota Avalon?
The Toyota Crown replaced the Avalon in the United States as the company's flagship sedan. It was introduced for the 2023 model year and features hybrid powertrains, standard all-wheel drive, and a higher ride height than the traditional Avalon.
You can watch this video to learn about the 2023 Toyota Crown: 1mAuto Buyers Guide | Alex on AutosYouTube · Jul 15, 2022
- A "sport utility sedan": While it is a sedan, the Crown has a higher stance, which makes it feel more like a crossover or SUV.
- Hybrid-only powertrains: The Crown is offered exclusively with a hybrid system, unlike the Avalon which was also available with gasoline-only engines.
- Higher-end technology: The Crown features newer technology than the last Avalon, including wireless Apple CarPlay and Android Auto support.
Is an Avalon nicer than a Camry?
Neither car is definitively "better"; the choice depends on your priorities: the Avalon is a more luxurious and spacious sedan with a powerful standard V6 engine, while the Camry is more fuel-efficient, offers sportier handling, and generally has a lower starting price. The Avalon prioritizes a plush, comfortable ride with premium features, whereas the Camry balances comfort with more agile performance.
This video compares the Toyota Camry and Avalon, highlighting their differences in size, performance, and luxury: 57sToyotaJeff ReviewsYouTube · Jun 18, 2020
Toyota Avalon
- Best for: Luxury, comfort, and a smoother, quieter ride.
- Engine: Standard V6 engine for more power.
- Cabin: More premium materials, features like heated rear seats, and more standard equipment.
- Space: Larger and has more rear seat and trunk space.
- Audio: Available 14-speaker JBL audio system.
Toyota Camry
- Best for: Fuel economy, affordability, and sporty driving.
- Engine: Offers more engine choices, including a fuel-efficient four-cylinder option.
- Handling: More agile and responsive handling.
- Fuel Economy: Higher miles per gallon (MPG) for both its gas and hybrid versions.
- Audio: Available nine-speaker JBL system.
Which one should you choose?
- Choose the Avalon if you prioritize luxury, a spacious cabin, and a powerful standard engine, and your budget allows for a higher starting price.
- Choose the Camry if you are on a tighter budget, want better fuel efficiency, or prefer a more nimble and sportier driving experience.
