Toyota enters the global luxury car market with flagship model priced at $170,000

Toyota Motor anticipates that the six-figure superluxury flagship vehicle will finally find favor outside of Japan.

In Japan, corporate titans and political figures, including the emperor, frequently opt for Toyota's Century, which is frequently referred to as the Rolls-Royce of Japanese automobiles. 

The Century has been offered almost exclusively in Japan since its introduction in 1967, where Toyota personally crafts a small number each month and screens potential customers. From its basic boxy sedan design and traditional style, the vehicle hasn't undergone much alteration. 

Toyota debuted a bigger, plug-in hybrid variant of the vehicle on Wednesday. According to Executive Vice President Hiroki Nakajima, it will be unveiled this year and made available to clients everywhere in the world. The new Century costs more than its outgoing sedan model, which sells for about $140,000, with a suggested retail price in Japan of $170,000.

In spite of the general stagnation in the auto industry, Toyota is seeking to boost sales of its new Century in two markets: larger and more expensive vehicles. Sport-utility vehicle sales grew globally in 2022 compared to 2021, despite a slight decline in overall automobile exports. The huge demand for SUVs in the US, India, and Europe contributed to that in part.

Despite recent economic uncertainty, demand for premium vehicles has remained high. In contrast to its prediction for little to no growth in the mainstream automobile market over the same period, consulting firm McKinsey predicts that sales of luxury cars will increase by as much as 8% to 14% yearly through the early 2030s.