Why is Camry discontinued in Japan?
The Camry was removed from Toyota’s Japanese market lineup as part of a broader reshuffle of domestic models, driven by waning demand for traditional mid-size sedans and a strategic pivot toward SUVs and electrified offerings. The move aligns Japan’s tastes with a shift seen in many markets away from large sedans toward crossovers and premium electrified cars.
Background: Camry in Japan versus global markets
The Toyota Camry has long been a staple in many regions outside Japan, especially in North America, but Japan’s domestic market has historically favored different body styles and models. In recent years, Toyota has leaned toward expanding its SUV and hybrid/SUV-inspired lines at home, while ensuring its premium sedans and electrified options remain competitive. This realignment often translates into narrower domestic availability for models that sell more strongly abroad.
Reasons for discontinuation
Several factors have commonly been cited by analysts and reporters covering Toyota’s domestic strategy when explaining the Camry’s exit from Japan.
- Declining demand for traditional mid-size sedans in Japan, as buyers increasingly prefer crossovers, SUVs, and compact vehicles with modern infotainment and safety features.
- Strategic emphasis on SUVs and premium/sporty sedans, including the Crown lineup and Lexus models, which better align with current consumer tastes and showroom profitability.
- Rationalization of model lineup to reduce overlap and simplify dealer networks, improving efficiency and after-sales support.
- Shift toward electrified platforms and the company’s broader electrification plan, prioritizing models that share common underpinnings with other popular Toyota and Lexus vehicles.
- Resource allocation decisions intended to accelerate Toyota’s global product cadence in alignment with electric/hybrid tech and next-generation platforms.
In summary, the move reflects Toyota’s aim to focus on segments with stronger domestic demand and higher profitability, while integrating its offerings more tightly with flagship and premium lines.
Impact on customers and the market
Understanding how this change affects buyers and the broader market helps contextualize its significance for consumers in Japan and for Toyota’s brand strategy.
- Current Camry owners in Japan face limited new-car options in the Camry family, with service and maintenance continuing for existing vehicles but no new sales of the model in the domestic market.
- Alternative new-car options within Toyota’s lineup include crossover/SUV models like the RAV4, Harrier, and the Crown family, as well as premium choices such as the Lexus ES, which occupy similar price ranges or segments.
- Domestic sedans in the smaller segment include Allion and Axio, which offer different sizes and features from the Camry but appeal to similar value-conscious buyers.
- Prospective buyers who still want a Camry-like experience may explore used-car markets in Japan, gray-market imports, or look to compatible models in other regions where the Camry is still sold.
Overall, buyers now typically turn to the Crown, Lexus ES, or other Toyota crossovers for a comparable mid-size or premium sedan experience in Japan, while the Camry nameplate itself no longer anchors the domestic lineup.
Broader strategic context
Japan’s automotive market has been undergoing a broader recalibration as consumers’ preferences shift toward electrified powertrains, advanced driver assistance features, and versatile body styles. Toyota’s domestic lineup has increasingly prioritized models that can leverage shared platforms and supply chains, optimize dealer networks, and meet Japan’s evolving tax and emission standards. The Camry’s discontinuation fits within this wider framework of portfolio optimization and electrification alignment.
What might come next for Toyota in Japan
Analysts expect Toyota to continue expanding its Crown-based offerings and premium sedans, while accelerating electrified options across segments. The company is likely to favor models that offer strong local demand, high profitability, and efficient platform-sharing, potentially reshaping how mid-size and near-luxury sedans are presented in the Japanese market for years to come.
Summary
Toyota’s decision to discontinue the Camry in Japan reflects a shift in domestic consumer preferences away from traditional mid-size sedans toward crossovers and electrified models, combined with a strategic push to strengthen Crown and premium/EV offerings. While the Camry remains a cornerstone in many other markets, Japan’s lineup is being streamlined to better match local demand, profitability, and Toyota’s broader electrification goals. For buyers, this means more choices in SUVs and premium sedans within Toyota’s portfolio, and a continued emphasis on electrified technology across the brand.
Why did Toyota discontinue the Camry in Japan?
Additionally, the Japanese Camrys were only offered with four-cylinder engines from 2001 onwards, and from 2011, only as a hybrid, which was not enough to stand out in a market saturated with hybrids. Furthermore, the Camry's decline in Japan can also be attributed to the changing market trends toward SUVs.
What is the 3 year rule for cars in Japan?
Three years after purchase, every new car has to go through an expensive inspection process, and once every two years after that. Furthermore, vehicles older than 10 years have to pass the inspection every year. As a result, most car owners in Japan write off their cars after 10 years and buy new ones.
Why was the Camry discontinued?
Toyota is not discontinuing the Camry globally, but is ending sales in Japan due to low domestic demand, a shift toward SUVs in that market, and the overlap with the Toyota Crown. The Camry will continue to be produced for other major markets, including North America, where it remains popular.
Reasons for discontinuing the Camry in Japan
- Low domestic sales: The Camry was selling poorly in Japan, with only 6,000 units sold in 2022, making up a small fraction of its global sales.
- Shift in consumer preference: Japanese consumers have increasingly favored SUVs and crossovers over sedans, a trend that hurt sales.
- Market overlap with the Crown: The Crown, which Toyota has reinvented as a quasi-crossover, fills a similar market role as the Camry, leading Toyota to focus on that model in Japan.
The Camry's future in other markets
- Continued global production: The Camry will continue to be produced for other markets where it is popular, such as the United States.
- Strong sales in North America: The Camry remains a strong seller in the U.S., which is one of its largest markets.
- New generation: A new generation of the Camry is planned for markets outside of Japan.
Are Camrys still made in Japan?
In 2023, Toyota announced it would discontinue Camry sales in Japan at the end of 2023, with the sedan finding just 6,000 buyers in 2022. That's just 1 percent of the model's total production from plants in Japan, the U.S., and China, which leaves about 594,000 Camrys a year for the rest of us.
