October DealsAmazon USOctober deal check: compare before you payAmazon US: current deals, useful picks and tech finds.Check DealsWindows FixRecommendedWindows errors stealing your time? Find the fix fastScan stability, cleanup and performance issues.Fix NowOctober DealsAmazon USDeal season is back - check today's better picksAmazon US: current deals, useful picks and tech finds.See Picks×
Skip to content
CarCodyAdvertise
Service recordThe Garage

Here’s Why Toyota Discontinued the Avalon

Toyota ended U.S. Avalon production after 2022 because large sedans were losing buyers to SUVs and crossovers. Here is what replaced it—and what the decision means for owners.
Entry879 Date Time9 min MechanicCarCody Team
Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

Toyota discontinued the Avalon after the 2022 model year because the large-sedan market had contracted—not because the car was known to be defective. Buyers were moving toward SUVs and crossovers, while Toyota was investing in electrified products and a new type of flagship. The 2023 Toyota Crown took over that role with a taller body, standard all-wheel drive, and hybrid powertrains.

Toyota discontinued the Avalon because the large-sedan business no longer justified the investment—not because the car had a known reliability or safety defect.

The 2022 model year was the last Toyota Avalon sold in the United States. Toyota announced in August 2021 that production would end after that model year, as buyers continued moving from traditional passenger cars toward SUVs and crossovers. At the same time, Toyota was reshaping its electrified lineup and looking for a more competitive flagship vehicle.

The Avalon’s successor was the 2023 Toyota Crown. It kept some of the Avalon’s mission—comfortable, near-luxury transportation from the Toyota brand—but changed the formula with a taller “lift-up” body, standard all-wheel drive, and hybrid powertrains. The Crown is therefore a strategic successor, not an identical replacement for the Avalon.

The Avalon was discontinued after the 2022 model year

Toyota introduced the Avalon in 1994. The fifth-generation Avalon arrived for 2019 on Toyota’s New Global Architecture platform, and the model received meaningful updates for 2022.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.
#1 Best Overall
Sale
Toyota Corolla Matrix & Pontiac Vibe 2003 thru 2019 Haynes Repair Manual - Based on a Complete Teardown and Rebuild
  • Step-by-step procedures written from a complete teardown and rebuild, giving you the confidence to tackle repairs at any skill level.
  • Over 700+ clear photos and diagrams that simplify complex systems, helping you complete jobs faster and with fewer mistakes.
  • Comprehensive troubleshooting and fault-finding guides to quickly diagnose problems and reduce costly downtime.

The final Avalon was still a current, well-equipped product. Depending on configuration, it offered a V6 or hybrid powertrain, standard Toyota Safety Sense 2.5+, and a new XSE Hybrid Nightshade grade. Those updates are important because they show that Toyota did not end the car after discovering a fundamental engineering problem.

In its 2021 announcement, Toyota said production would end after the 2022 model year while also stating that Toyota Motor Manufacturing Kentucky’s production capacity and employment would not be affected. In other words, the announcement described a product and portfolio decision—not the closure of the plant that built the Avalon.

The main reason was the shrinking large-sedan market

Toyota executives had been publicly discussing the change in consumer behavior for years. In one company presentation, Toyota executive Bob Carter said SUVs and trucks had grown from roughly 50 percent of the market to about 65 percent in five years, while sedans had fallen to approximately 35 percent.

Toyota’s 2021 sedan discussion offered an even clearer description of the market: roughly two SUVs were being sold for every sedan, and many automakers were reducing or ending sedan production. Toyota acknowledged that a substantial sedan customer base remained, but the overall category had become smaller.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

This put the Avalon in a particularly difficult position. It was larger and more expensive than the Camry, but it did not carry the luxury-brand status of a Lexus ES. The Avalon was effectively occupying the space between Toyota’s high-volume mainstream sedan and Toyota’s luxury division.

That middle position had once been useful. As the market changed, however, Toyota had to support two closely related front-wheel-drive sedans for overlapping buyers while the smaller Camry had far greater name recognition and sales volume. Contemporary reporting described the Avalon as trailing Toyota’s Camry, Corolla, and Prius in sales.

Rank #2
Sale
Toyota Camry 2007 thru 2017 Haynes Repair Manual- Includes Avalon and Lexus ES 350: Includes Essential Information for Today's More Complex Vehicles (Haynes Automotive)
  • Step-by-step procedures written from a complete teardown and rebuild, giving you the confidence to tackle repairs at any skill level.
  • Over 700+ clear photos and diagrams that simplify complex systems, helping you complete jobs faster and with fewer mistakes.
  • Comprehensive troubleshooting and fault-finding guides to quickly diagnose problems and reduce costly downtime.

That does not mean nobody bought Avalons. The model could still have good individual months or periods of growth; reports cited a 36.6 percent increase during the first half of 2021. But short-term growth did not change the larger issue: the Avalon’s absolute sales volume and market position were weaker than Toyota’s other products, and the company had more promising places to invest.

SUVs offered the features Avalon buyers wanted in a more popular shape

The Avalon’s strengths were comfort, a quiet ride, rear-seat room, a large trunk, and premium features without a luxury-brand price. SUVs and crossovers increasingly offered many of those same benefits while adding features that traditional sedan buyers could not get as easily:

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.
  • A higher seating position and better outward visibility
  • Easier entry and exit, especially for older buyers
  • More flexible cargo space
  • Available or standard all-wheel drive in many models
  • A taller, more commanding appearance that many consumers preferred

A replacement sedan could have preserved the Avalon’s basic formula, but it would have been competing in a shrinking category. Toyota instead adapted the flagship idea to the market that was growing.

The Toyota Crown was Toyota’s answer

Toyota’s current discontinued-vehicle information presents the Crown as the next flagship vehicle after the Avalon. The U.S.-market 2023 Crown used a raised “lift-up” body design rather than the Avalon’s conventional low-slung sedan profile. It also offered standard all-wheel drive and two hybrid powertrain choices depending on grade.

The top Platinum grade added Toyota’s Hybrid MAX system, giving the Crown a more performance-oriented option than a conventional economy-focused hybrid. This allowed Toyota to preserve several Avalon themes—quiet comfort, an upscale cabin, and efficient power—while making the vehicle more compatible with crossover-oriented expectations.

Calling the Crown an exact Avalon replacement would be misleading. The Crown is taller, styled differently, and positioned around a different set of buyer priorities. It is better understood as a functional successor: a new Toyota flagship intended to attract some of the people who might once have considered an Avalon, while also appealing to customers who would now shop for a crossover or SUV.

Free tools Windows power users keep installed

One-click scans. No signup required.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.
Rank #3
Sale
Toyota Tundra 2007 thru 2019 and Sequoia 2008 thru 2019 Haynes Repair Manual: All 2WD and 4WD models
  • Compatible with Toyota Tundra (2WD and 4WD) 2007-2019
  • Compatible with Toyota Sequoia (2WD and 4WD) 2008-2019
  • Paperback

Electrification influenced the decision, but the Avalon was not “too difficult to electrify”

Toyota was also broadening its electrified lineup when it ended Avalon production. Toyota reported that Toyota Division electrified sales rose nearly 81 percent in 2021 and represented about one-quarter of the division’s sales volume that year. The company also set a goal of offering an electrified option across Toyota and Lexus models globally by 2025.

The Avalon itself was not excluded from that strategy. Toyota sold Avalon Hybrid versions, and the company said hybrid Avalon sales grew by double digits in 2021. That fact rules out the simplistic explanation that Toyota canceled the Avalon because it could not be made into a hybrid.

The more accurate interpretation is that Toyota was deciding which products deserved future development money. A hybrid version of a low-volume large sedan could remain technically viable while still being a less attractive investment than a hybrid flagship with a taller body and broader market appeal. The Crown continued the electrification strategy in a vehicle designed for the market Toyota expected to grow.

What Toyota actually said—and what it did not say

Toyota’s public announcement was deliberately measured. The company confirmed the Avalon’s end after 2022, said it remained committed to sedans, and suggested that customers watch for future developments. It also said the Kentucky plant’s capacity and employment would not be affected.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

Toyota did not announce that the Avalon was unreliable, unsafe, defective, or impossible to manufacture profitably. There is no support in the available evidence for treating the discontinuation as a product-quality verdict.

Toyota also did not abandon sedans entirely. It continued producing vehicles such as the Camry, Corolla, Prius, and Mirai, while the Crown demonstrated that the company still wanted a premium, car-like flagship. The company was pruning one low-volume nameplate rather than leaving the entire sedan category.

What replaced the Avalon?

Vehicle How it relates to the Avalon What changes
Toyota Crown The closest official flagship successor Taller lift-up body, standard all-wheel drive, hybrid-focused lineup, different styling and driving position
Toyota Camry The closest conventional Toyota sedan alternative Smaller, more mainstream, and not a one-for-one substitute for the Avalon’s size and near-luxury positioning
Lexus ES The closest comfort-oriented luxury-family alternative Sold as a Lexus, with a more upscale brand position and different pricing, equipment, and ownership experience

For a buyer who specifically wants Toyota ownership and a large, comfortable replacement, the Crown is the most direct new-car answer. For someone who wants a traditional sedan at a more mainstream price, the Camry is the logical comparison. For someone who valued the Avalon’s quiet, upscale character and is willing to move into Toyota’s luxury division, the Lexus ES is worth considering.

What the discontinuation means for Avalon owners

Discontinued does not mean unsupported. Toyota’s current Avalon information says existing vehicles will continue receiving care and service through Toyota service centers. Routine maintenance, warranty matters for eligible vehicles, and ordinary repair support do not end simply because a model is no longer produced.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

The practical difference is that there will be no new U.S.-market Avalons after the 2022 model year. Owners should continue following the maintenance schedule for their specific year, trim, and powertrain. When buying replacement items, verify the vehicle’s model year, engine, trim, and part number rather than assuming every Avalon uses the same component.

For example, owners shopping for a Toyota Avalon key fob cover, cabin air filter, or replacement floor mats should confirm the key design or year-specific fitment before ordering. Those are ordinary ownership items, but compatibility can vary across generations and trims. A general automotive OBD2 scanner can also help with basic diagnostic checks when inspecting a used car, although it is not an Avalon-specific tool and cannot replace professional diagnosis.

Toyota’s support statement also does not guarantee that every part will remain equally easy or inexpensive to obtain forever. It means owners should not assume that service stopped immediately. Parts availability and compatibility should be checked for the particular vehicle and repair.

Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Support on Ko-Fi

Does discontinuation make the Avalon a bad used-car purchase?

No. The end of production is not, by itself, evidence that a used Avalon is unreliable or unsafe. A used-car decision should be based on the individual vehicle’s maintenance history, mileage, condition, accident history, inspection results, and the known requirements of its particular powertrain.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

A discontinued model can have advantages: purchase prices may be attractive, the vehicle may offer more equipment and space than similarly priced newer sedans, and the Avalon’s core mechanical packages were shared with Toyota’s broader engineering and service ecosystem in some areas. But compatibility and repair assumptions still need to be verified by year, trim, and part number.

Before buying one, check for:

  • Documented maintenance and oil-change history
  • Hybrid-system condition and service history on hybrid models
  • Transmission behavior, suspension wear, brake condition, and tire age
  • Open recalls or unresolved campaign work
  • Evidence of flood, accident, rental, or neglected-vehicle use
  • A pre-purchase inspection by a qualified mechanic

The short answer

Toyota discontinued the Avalon because it was a relatively low-volume large sedan in a market increasingly dominated by SUVs and crossovers. The company also wanted to direct future product and electrification investment toward vehicles with stronger growth potential. The 2022 Avalon was still a modern, well-equipped car, so its cancellation was a portfolio and market decision—not a response to a known defect.

Toyota replaced the Avalon’s flagship role with the hybrid-focused, all-wheel-drive Crown. The Crown is not the same car, and Toyota did not abandon sedans altogether. It changed what its flagship passenger vehicle looked like so that the vehicle would better match how American buyers were shopping.

Frequently Asked Questions

Was the Toyota Avalon discontinued because it was unreliable?

No. The available evidence does not identify a specific reliability, safety, or engineering defect as the reason for the Avalon’s cancellation. Toyota was still updating the model for 2022 with V6 and hybrid powertrains, standard Toyota Safety Sense 2.5+, and a new XSE Hybrid Nightshade grade.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

What was the last year of the Toyota Avalon?

The 2022 model year was the final U.S.-market Avalon. Toyota announced in August 2021 that production would end after the 2022 model year.

What replaced the Toyota Avalon?

The Toyota Crown is the closest official successor to the Avalon’s flagship role. The Camry is the closest conventional Toyota sedan alternative, while the Lexus ES is a more upscale comfort-oriented alternative within Toyota’s corporate family.

Can Toyota still service an Avalon?

Yes. Toyota says existing Avalons will continue receiving care and service through Toyota service centers. Owners should still verify maintenance and parts requirements by model year, trim, and powertrain.

The Bottom Line

Bottom line: Toyota ended Avalon production after 2022 because the large-sedan market was shrinking and the company saw better opportunities in SUVs, crossovers, and electrified vehicles. The Avalon was not discontinued because of a documented reliability or safety problem. The 2023 Toyota Crown became its closest official successor, although the Camry and Lexus ES may be better alternatives depending on whether a buyer prioritizes traditional sedan design, mainstream Toyota pricing, or luxury comfort.

What’s actually slowing this PC down?

Pick the symptom - the matching free tool is one click away.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.

More from the Garage

  1. Entry001Date03 OCT 26Time7 minBest Used Cars Under $20K: 4 Smart Picks for Different NeedsSection: Blog
  2. Entry002Date09 OCT 26Time3 minWhich Brake Pad Should You Buy From RockAuto or Elsewhere?Section: Blog
  3. Entry003Date09 OCT 26Time5 minThe Pros and Cons of Touchless Car Wash SystemsSection: Blog

Thanks for visiting Carcody

Carcody.com is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to amazon.co

Recommended PC Tool
Recommended PC Tool
Outdated Drivers Are Slowing You DownFree scan - exact matches
PC Slower Than It Used to Be?Free scan - under a minute

Two free Windows tools

One Free Minute Could Fix That PC

Before you go - each of these free tools takes about a minute and tackles what quietly slows a Windows PC down.

Special offer. View Outbyte info, uninstall instructions, EULA, and Privacy Policy.