Why is the Toyota C-HR being discontinued?
Toyota has announced that it will be discontinuing the C-HR crossover SUV model in the United States after the 2023 model year. This decision comes as the automaker shifts its focus to other popular and profitable models in its lineup.
Declining Sales and Shifting Market Trends
The Toyota C-HR was introduced in the U.S. market in 2017 as a compact crossover SUV aimed at younger, urban-dwelling consumers. However, the model has struggled to gain traction, with sales declining in recent years. In 2022, Toyota sold just over 20,000 C-HR units in the U.S., a significant drop from the nearly 40,000 units sold in 2018. This decline reflects the broader shift in consumer preferences away from smaller crossovers and towards larger SUVs and trucks.
Overlap with Other Toyota Models
Another factor contributing to the C-HR's discontinuation is the model's overlap with other Toyota SUVs in the company's lineup. The C-HR's size and price point put it in direct competition with the popular RAV4 compact SUV, which has consistently been one of Toyota's best-selling models. With the RAV4 offering more space, features, and a stronger brand reputation, the C-HR has struggled to carve out a distinct niche for itself in the crowded crossover market.
Shift Towards Electrification
Toyota's decision to discontinue the C-HR also aligns with the company's broader strategic shift towards electrification. As the automaker invests heavily in the development of hybrid, plug-in hybrid, and fully electric vehicles, the C-HR's traditional internal combustion engine powertrain may have become less of a priority. The company is likely focusing its resources on developing and promoting its growing lineup of electrified models, which are better positioned to meet evolving consumer demands and environmental regulations.
Conclusion
The discontinuation of the Toyota C-HR reflects the changing dynamics of the automotive industry, where consumer preferences, market competition, and technological advancements are driving automakers to continuously evaluate and adjust their product portfolios. While the C-HR may not have found the success Toyota had hoped for, the company's decision to focus on its more popular and profitable models, as well as its electrification efforts, is a strategic move to ensure its long-term competitiveness in the rapidly evolving crossover SUV market.
