Why Was The Toyota Yaris Discontinued In India?

Toyota discontinued the Yaris sedan in India on September 27, 2021, ending its three-year run in a competitive market. Here’s a concise breakdown of the key reasons behind this decision:

Poor Sales Performance

Launched in 2018, the Yaris stumbled to attain traction, selling only 19,784 units by August 2021. Despite its bonus features (e.g., seven airbags), it failed to challenge competitors like the Honda City, Hyundai Verna, and Maruti Suzuki Ciaz, which overpowered the midsize sedan segment.

Decline of Sedan Segment

Indian buyers increasingly preferred SUVs and MPVs, leading to a sharp decline in sedan demand. Toyota’s own priority shifted to high-selling models like the Fortuner and Innova, which aligned with market trends.

Strategic Rebadging Partnership

Toyota prioritized rebadged Maruti Suzuki models (e.g., Glanza, Urban Cruiser) for the budget segment. The Yaris was replaced by the Toyota Belta, a rebadged Maruti Ciaz, to leverage cost efficiency and shared platforms.

Pricing & Positioning Issues

The Yaris was priced higher than its rivals but lacked distinguishing features. Critics called its design and driving experience “ordinary,” making it hard to explain its premium tag.

Emission Norms & Cost Rationalization

Upgrading the Yaris to meet BS6 standards (effective 2020) required investment, which Toyota deemed unviable for a low-volume model.

Aftermath

Toyota ensured continued support for existing owners, including spare parts availability for 10 years. The discontinuation reflects broader industry shifts toward SUVs and hybrid models, as seen in Toyota’s record 2024 sales driven by the Innova Hycross and Urban Cruiser Hyryder.