Why did Toyota stop making the Yaris?

Toyota stopped producing the Yaris in several key markets because demand for subcompact hatchbacks has weakened as buyers shift toward crossovers and hybrids, and because the company is restructuring its lineup around higher-margin, electrified models. In the United States, the Yaris hatchback was dropped after the 2019–2020 period and has largely been replaced by the Corolla Hatchback; in Europe, the Yaris name has been redirected toward the Yaris Cross, a compact crossover.

The question spans multiple regions and generations of the Yaris nameplate, which has appeared in various forms—including hatchbacks, sedans, and crossovers—since the mid-2000s. Toyota’s decision reflects broader industry trends toward practical, higher-riding vehicles and electrified powertrains, while also simplifying production across plants and supplier networks.

Market forces behind the decision

Several factors shaped Toyota’s move away from the Yaris in different regions:

• Shifting consumer demand away from subcompact hatchbacks toward crossovers, SUVs, and efficient small hybrids.


• Profitability and manufacturing efficiency: crossovers and electrified models generally offer higher margins and shared platforms across markets.


• Strategic alignment with electrification: the Yaris lineup offered limited electrification in some markets, while Toyota pushed for broader electrified options.


• Product lineup simplification: reducing model fragmentation helps streamline supply chains and dealer networks, especially amid recent global disruptions.

Taken together, these dynamics led Toyota to retire the Yaris name in several regions while leaning into the Yaris Cross and other electrified small-car options that fit its current portfolio strategy.

Regional outcomes

The impact varied by market:

• United States and Canada: The Yaris hatchback was discontinued after the 2019–2020 cycle, with Toyota leaning on the Corolla Hatchback for the compact-hatch niche and offering crossovers as the mainstream choice for new buyers.


• Europe and the United Kingdom: Toyota reframed the small-car segment around the Yaris Cross, a compact crossover that shares the Yaris platform but sits higher in the lineup, with the traditional Yaris hatchback fading from many markets by the mid-2020s.


• Other regions: In parts of Asia-Pacific, Yaris variants persist under different badge names or are consolidated into broader small-car families, reflecting local preferences and regulatory environments.

These regional shifts illustrate how a single model nameplate can evolve differently across markets while reflecting a common strategic pivot toward crossovers and electrified powertrains.

What replaced or supplemented the Yaris

With the Yaris no longer central in many markets, Toyota leaned on related models to fill the gap:

• United States and Canada: The Corolla Hatchback effectively fills the compact-hatch niche, offering more space, modern safety tech, and hybrid options where available, rather than a separate Yaris.


• Europe and other markets: The Yaris Cross serves as the entry point to Toyota’s small-car lineup, delivering higher ground clearance, a roomier interior, and available hybrid powertrains that align with Toyota’s electrification push.

What this means for buyers is a tighter concentration of offerings around crossovers and electrified hatchbacks rather than a standalone subcompact hatchback in many regions.

Summary

Toyota stopped producing the Yaris in several major markets due to a combination of shifting consumer tastes toward crossovers, economics of small-car production, and a strategic pivot toward electrified and higher-margin models. In the United States, the Yaris hatchback ended production around 2020 and was supplanted by the Corolla Hatchback. In Europe, the Yaris strategy has focused on the Yaris Cross, with the traditional hatchback phased out in many markets. Across regions, the Yaris name has become less central as Toyota concentrates on crossovers and electrified small cars.

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.

Did Toyota bring back the Yaris?

Both Yaris and Yaris Hatchback have been discontinued, making 2020 the last model year for each vehicle. If you're a current Yaris or Yaris Hatchback owner, you'll still receive great service from your local Toyota Service Center.

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

What replaced the Toyota Yaris?

Like the current Yaris sedan, it's looking like the 2020 Yaris hatch will also be built by Mazda.