Why did Toyota stop making the tercel?
The Toyota Tercel was phased out in the late 1990s as part of a broader lineup refresh. The company shifted resources to newer, more efficient subcompact models such as the Echo/Yaris and pursued modernization of safety and emissions across its compact range.
Background of the Tercel
Introduced in 1978, the Tercel was Toyota’s entry-level subcompact designed for affordability and strong fuel economy. It evolved through several generations across global markets, serving as a practical, budget-friendly option within Toyota’s lineup. Over time, however, the design and engineering edge that kept it competitive narrowed as consumer tastes shifted toward newer hatchbacks and crossovers.
Timeline and reach
Across its life, the Tercel was sold in many regions, including North America, Europe, and Asia, adapting to local regulations and market needs. By the late 1990s, the model lineup needed modernization to meet stricter safety and emissions standards and to align with Toyota’s global product strategy.
Why Toyota decided to stop making it
Several factors contributed to the decision to retire the Tercel. The main drivers were:
- Ageing design and the rising cost of updating an older platform to meet new safety and environmental standards.
- Increased competition from newer, better-equipped subcompacts such as the Echo/Yaris and refreshed Corolla hatchbacks.
- A strategic shift to consolidate subcompact offerings around a smaller set of modern platforms rather than maintain an aging model.
- Regulatory and market changes favoring more modern engines, safety tech, and improved fuel economy.
- Profitability and product planning considerations that encouraged Toyota to redirect investment toward newer-name models.
In sum, the retirement of the Tercel reflected a broader industry trend in the late 1990s: aging economy cars were being replaced by more modern, compliant, and desirable entries in a tightening market for compact vehicles. Toyota chose to focus on newer platforms that could deliver better efficiency, safety, and resale value.
What replaced the Tercel in markets around the world
Across regions, Toyota gradually replaced the Tercel with the Echo/Yaris lineup and other members of the Corolla family, which offered updated styling, modern safety equipment, and improved efficiency. These replacements were part of a broader strategy to streamline Toyota’s compact-car offerings and align with evolving consumer preferences and regulations.
Summary
The Tercel was retired in the late 1990s as part of Toyota’s global lineup refresh, driven by aging design, safety and emissions upgrades, and a strategic move toward newer subcompact models. The model’s role was taken over by newer entries like the Echo/Yaris and related hatchbacks within the Corolla family, marking the end of an era for a once-popular budget-friendly Toyota.
Are 1990 Toyota Tercels reliable cars?
These cars are very reliable, good mileage. Watch the brakes for frequent repairs and rust on the back wheel fenders.
How long will a Toyota Tercel last?
It will run forever, won't cost much to insure or operate, and is put together with the precision of a Swiss watch. Unfortunately, fit, finish and reliability don't come for free, and the Tercel has traditionally pushed the boundaries of acceptable pricing.
How much did a new Tercel cost?
2026 Toyota Tercel DX MSRP - $14,900 Engine - 1.5L 4Cyl 1NZ-FE (Borrowed from Toyota Yaris) Transmission - 6 Speed Automatic, 5 Speed Manual available Safety - Toyota Safety Sense Collision Detection System, Lane Departure Alert, Dynamic Radar Cruise Control, Auto High Beams.
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.
