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The iconic Toyota Corolla sedan has seen its sales decline in Brazil as hybrid and electric models such as BYD quickly gain market share. In response, Toyota plans to launch a more affordable version of the Corolla to win back consumers and face growing competition in the domestic automotive sector.
The Brazilian automotive market has been undergoing profound changes in recent years. Models that were once synonymous with leadership and tradition are facing new challenges as consumer profiles change.
The Toyota Corolla, one of the best-selling sedans in the country's history, is now having to deal with a gradual decline in sales.
If mid-size sedans were previously the national preference, today consumers are increasingly inclined to choose SUVs and more technological models.
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This phenomenon has directly impacted Toyota, which has already seen a significant change in the acceptance of the Corolla and is looking for ways to reverse this situation.
The rise of SUVs and the loss of Corolla's space
Statistics reinforce this change. In 2024, the Corolla Cross, the SUV version of the model, outsold the traditional sedan. There were more than 47 thousand units registered, compared to 37 thousand for the sedan.
This number shows how Brazilian consumers have come to value taller, more robust vehicles with more interior space, a trend that has also been consolidated in international markets.
This fall of the sedan did not happen overnight. In 2020, 41 thousand units of the Corolla sedan were sold, but since then, the numbers have fallen year after year.
This indicates that Toyota needs to act quickly to prevent one of its greatest commercial successes from losing even more relevance.
Furthermore, the SUV market in Brazil is booming, with models such as the Honda HR-V, Jeep Compass and Volkswagen T-Cross dominating sales.
The Corolla Cross itself has been one of the cars most valued by consumers for combining reliability and a more modern design.
The future of the Corolla sedan: is there still demand?
Despite the reduction in sales volume, the Corolla sedan still has its audience.
According to News Motor website, fleet owners and app drivers continue to invest in the model due to its mechanical reliability and tradition in the market.
However, to maintain this niche, Toyota understands that it needs to offer a differentiator to prevent these customers from migrating to other options.
The automaker's response is a plan to make the Corolla more affordable. Toyota will launch a simpler version of the Corolla GLi, with an estimated price of R$ 129,8 thousand.
This new configuration will have some changes to reduce costs, such as the removal of leather seats and the Toyota Safety Sense system, which combines safety assistance and partial autonomous driving.
This strategy aims to reach an audience that wants a reliable sedan, but without paying prices close to those of the most modern SUVs.
The bet is that this “basic” version can attract consumers looking for value for money and a traditional car..
The challenge of competing with new trends
Another factor that affects the Corolla's performance is the rise of electrified and hybrid vehicles. Models such as the BYD King and BYD Seal, hybrid and electric, are winning over audiences looking for cutting-edge technology and energy efficiency.
The global trend towards electrification is gaining momentum in Brazil, and Toyota needs to react to avoid losing market share to these new options.
The automaker already offers hybrid versions of the Corolla and Corolla Cross, but with the growth of competition, it will need to reinvent itself to remain relevant.
Electrification will be a natural step, but prices are still an obstacle for many consumers.
How can Toyota save the Corolla?
For experts, with fierce competition from SUVs and electric vehicles, Toyota will need to balance tradition and innovation.
Betting on the simplest version of the Corolla could help maintain sales of the sedan, but In the long term, the automaker will need to invest even more in technology and electrification to ensure the model remains on the market..
Toyota could also work on a complete overhaul of the Corolla's design and powertrain in the coming years, offering something that really appeals to consumers who currently opt for SUVs and hybrids.
The challenge has been launched: to maintain the relevance of an iconic model in a market that never stops changing.
I believe it is due to the delay in changing the model, I bought an Altis when it was launched, two years later I changed it for another one, now I changed it for a Honda Civic, because I didn't want to buy another car that had practically changed nothing.
With this ridiculous exchange rate, it sells too much
Corolla GLI 20/21:
I am very dissatisfied with the defects and expensive maintenance with the advent of the Corolla using direct fuel injection, presenting a defect even after replacing one of the injectors! This was over a year ago and only now have they replaced the other 3. Toyota passes us a high cost in the revisions and even outside of it... because my car was at the dealership with a defect with a warning of "Malfunction of the start control, visit a dealership". They are passing on to me the costs of cleaning the injectors that were done at 6000 KM and also condemned my battery.
After going back and forth to the Toyota dealership, they replaced the faulty injectors. The car's power improved! I no longer fill up with alcohol, in the hope of avoiding the problems caused by direct injection injectors.
It was also advice from my mechanic on my previous Corolla… only fill up as if the car wasn’t flex fuel!
Corolla is no longer “tack”, I don’t trust it anymore… after 15 years using Corolla, I’m tired. I just traded it for a Kia Stonic Mild Hybrid, 1.0 Turbo and in my opinion, better performance and economy! What I wanted! I’m very satisfied now.