New Toyota Corolla shows why free trade deals don’t always equate to cheaper cars

THE Federal Trade Minister says free trade deals lead to cheaper cars for Australian buyers, but the example of the Toyota Corolla suggests otherwise.

Oh what a feeling ... Toyota expects the Corolla will be the top-selling car again this y

The starting price of the new Corolla sedan — the first Toyota passenger car to come to Australia from Thailand — is $20,740 plus on-road costs, which is dearer than the $19,990 price of the hatch that comes from Japan.

While the Federal Government is putting the finishing touches on a Free Trade Agreement with South Korea, this example shows that FTAs don’t always equate to cheaper cars.

Toyota has instead chosen to load the new Corolla sedan to the hilt, with features previously reserved for luxury cars; a rear view camera, parking sensors and seven airbags are standard even on the most basic model.

OOPS! FREE TRADE DEAL TRIPS HOLDEN

“We’ve chosen to price the car to the market; the sedan customer is a very different customer to the hatch customer,” said Toyota Australia executive director of sales and marketing, Tony Cramb, at the launch of the vehicle in Launceston today.

“By our estimates, 85 per cent of these customers won’t cross-shop these vehicles.”

Toyota says the new Corolla sedan is still sharp value because the starting price is actually $250 less than the previous model launched in 2007, during which time the Consumer Price Index rose by more than 20 per cent.

By Toyota’s calculations the true cost of the new Corolla sedan should start from in excess of $25,000.

Toyota expects the Corolla will be the top-selling car again this year with the arrival of the new sedan.

Replacing the iconic Holden versus Ford battle, Toyota’s Corolla will go head-to-head with the Mazda3 small car for top-seller status.

Meanwhile, Toyota said it had no further comment to make on its plans beyond 2017, when it will end vehicle manufacturing in Australia.

While it is feared Holden and Toyota may shut their factories before their deadlines, Toyota says it is committed to building cars until 2017 and will work with local suppliers to ensure they can continue to supply parts.

Toyota repeated earlier comments that it will continue to sell the Camry and Aurion models once manufacturing ends, but those models will be imported from one of the eight other factories that make the same cars.

This reporter is on Twitter: @JoshuaDowling