Toyota to Join Global Luxury Car Market With $170,000 Flagship Model
Carmaker shows off new version of vehicle used by the emperor, currently sold only in Japan
TOKYO—Toyota Motor TM 1.64%increase; green up pointing triangle thinks the world outside of Japan may finally be ready to embrace its six-figure superluxury flagship car.
Toyota’s Century—often described as the Rolls-Royce of Japanese cars—is frequently chosen by corporate chieftains and government leaders in Japan, including the emperor.
Since it made its debut in 1967, the Century has been sold almost exclusively in Japan, where Toyota handmakes a few dozen a month and vets potential buyers. The model has changed little from its original boxy sedan shape and classic styling.
On Wednesday, Toyota showed off a new, larger, plug-in hybrid version of the model. It will be introduced this year and offered to customers anywhere in the world, Executive Vice President Hiroki Nakajima said. At a suggested retail price in Japan equivalent to $170,000, the new Century costs more than its previous sedan iteration, which sells for around $140,000.
With its new Century, Toyota is chasing sales in two segments—larger and luxury vehicles—that have continued to grow despite stagnation elsewhere in the car market. In 2022, global sport-utility vehicle sales grew 3% from a year earlier despite a slight decline in overall car shipments. That was due in part to strong demand for the vehicles in the U.S., India and Europe.
Demand for luxury cars has also continued to rise through recent economic uncertainties. Consulting firm McKinsey estimates that luxury car sales will grow as much as 8% to 14% annually through the early 2030s, in contrast with its forecast for little to no growth in the mainstream car market over the same period.