If ten years ago the Toyota Corolla was synonymous with affordability, today the reality is radically different. The price of the Japanese icon has literally “taken off“ into space, outpacing people's incomes at a pace that makes the average buyer seriously scratch their head. Data from the Nikkei Asia publication reveals a shocking picture: the base version of the model in its home market has become more expensive by a dizzying 57.2% compared to 2015.
Statistics vs. Reality: Where's the Catch?
If we stare at the dry numbers, the jump is drastic, but the truth has another face. A large part of this “price shock“ is due to the retirement of the budget Corolla Axio. This spartan sedan, which for a long time “squeezed“ starting price down, officially went down in history last year. If we compare more modern hatchbacks, such as the old Auris and today's Corolla Sport, the price increase is a little more moderate - – “barely“ 37.4%. But even here, the numbers bite!
Inflation does not bypass the Japanese
Don't think that Toyota is the only “culprit“. The entire Japanese market is under siege: Kei cars (those small city boxes) have risen in price by 33%. Compact models have added 31% to their price tag. Large limousines and SUVs have jumped by 24%, and the gap between wages and prices is widening.
And here comes the most bitter pill for the Japanese consumer. While car prices are skyrocketing, wages in Japan are moving at a snail's pace - barely 10% growth per decade. As a result, for many families, the dream of owning a new car is becoming a mirage. In fact, just like things have been like in our country for a long time.