Toyota Is Killing Japan's $10,000 Corolla

$10,000 cars still exist–you just have to know where to look for them. One place is India, where you can pay even less than that for a brand-new Skoda crossover or a Honda sedan. In Japan, Toyota sells this dirt-cheap Corolla. It looks different from the globally available model since it's based on the previous generation sold only in certain markets. This "E160" differs from the larger "E170" we got here in North America.

Available as the Corolla Axio sedan and Corolla Fielder wagon, the refreshingly basic compact car will go out of production in late October 2025, according to an announcement made today by Toyota Japan. Also available in a dedicated version for driving schools, the sedan costs 1,639,600 yen for the base trim with front-wheel drive and a manual gearbox. That works out to only $10,800. Customers only pay 1,913,000 yen ($12,600) even when opting for all-wheel drive and a CVT.

The practical Fielder wagon is a bit more expensive, starting at 1,786,400 yen ($11,770). To be fair, the yen dropped to a 38-year low against the dollar less than a year ago. According to XE.com, the yen has lost 26% of its value compared to the dollar in the last five years. Nevertheless, the idea of paying so little for something that isn't a diminutive kei car is a reminder of a time gone by.

It's been a while since you could pay four digits for a new car in the US. One of the last sub-$10,000 vehicles sold in America was the 2009 Nissan Versa, priced at $9,990. In 2025, you'll pay $18,330 for the compact sedan. However, time might be running out for the only sub-$20,000 car still on sale in the US. Automotive News reports that the Versa will be discontinued this year and might even take the larger Altima with it.

Toyota has been selling this generation of the "E160" since 2012, giving it an unusually long 13-year life cycle. The current Corolla "E210" available in the US is more than double the price, starting at $23,460. Overall, it is objectively a nicer car, but the simplicity of the Axio has its charm.

However, this car would primarily appeal to those who only want a new vehicle for the least amount of money. According to the Kelley Blue Book, the average price of a new car sold last month in the US was $48,031, so Americans prefer nicer vehicles with more amenities. Steelies and the absence of a central touchscreen wouldn't fly here.