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January 17, 2023 10:31 AM

Why Toyota Corolla beat Honda Civic as top-selling car in Canada in 2022

After 24 years on top, the Honda Civic is no longer the best-selling car in Canada. That title now belongs to the Toyota Corolla

Greg Layson
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    2023 Toyota Corolla
    TOYOTA

    Toyota offers the Corolla sedan in eight trims

    For the first time in 24 years, there’s a new top-selling car in Canada.

    The Toyota Corolla knocked the Honda Civic from the throne on which it sat for nearly a quarter century, but it's too soon to say whether the dethronement is the start of a long-term trend.

    Toyota sold 33,096 Corollas in 2022, surpassing the Civic total of 29,722 by more than 3,000 units.

    Corolla sales fell 17 per cent compared with a year ago, while Civic sales were off 31 per cent.

    “We’re very humbled and gratified by how Canadians have reacted to that particular entry we have in market. It remains our sort of bread-and-butter, go-to vehicle for so many Canadians,” Cyril Dimitris, Toyota Canada vice-president of sales and marketing, told Automotive News Canada. “When we hear that it’s the No. 1 selling sedan or passenger car, we’re very gratified by that.”

    There were plenty of reasons for Toyota’s big win, but analysts say none guarantees the Corolla of a repeat performance in 2023.

    Sam Fiorani, vice-president of global vehicle forecasting at U.S.-based AutoForecast Solutions, says the Corolla offers more choice than the Civic.

    “A wider range of models, including one with a lower base price than any Civic and an AWD model, makes the range more appealing to Canadian buyers,” Fiorani said. 

    The Corolla base price is $27,564, including shipping, while the entry-level Civic is slightly more at Honda’s “all-in price” of $28,746. But, Toyota offers the Corolla sedan in eight trims, a hatchback and a sporty GR version. The Civic comes in just four trims, but also is available in a hatchback and performance Type R.

    ‘BROADER AUDIENCE’

    “I personally think we’ve done a great job at keeping this product refreshed,” Dimitris said of the Corolla. “And that means new powertrains, different powertrains, new features. 

    “We’ve added all-wheel drive to the vehicle. It comes in a hybrid. It comes in new body styles.

    “Most recently, we’ve injected some energy into the Corolla brand with GR Corolla. 

    “When you do those things, we feel we’re appealing to a broader and broader audience. And we feel there is a Corolla for just about anybody.”

    Dimitris said it was never Toyota Canada’s to specifically target Civic.

    “We have lots of internal goals and targets we set, but certainly knocking off Civic was not a conscious mission within our organization, especially in this environment of supply chain disruptions and challenges. It wasn’t something we were out to do,” he said. “It’s really about trying to eke out every product we can sell, every vehicle we can sell and get it to customers.

    “Our way of going about our business is really to assess what the public need and want is in our lineup and try to do our best to fulfil that need and want as efficiently and as effectively as we can in this environment.”

    CIVIC SUFFERS SETBACKS

    GREG LAYSON

    Honda Canada says a litany of supply chain problems “seriously affected our ability to meet the continued and robust consumer demand for Canada’s favourite car.”

    However, the Civic suffered more than Corolla when it came to feeling the effects of the ongoing — although recently easing — global semiconductor shortage over the last two years.

    Fiorani said combined production of the Civic in Canada, Japan and the United States fell 23 per cent in 2022 compared with 2021. Civic sales were down 31 per cent, so low production numbers can’t be the only reason its sales suffered, Fiorani said.

    Honda Canada said in a statement problems spanned beyond just microchips and that it faced “significant supply chain, transport, parts availability and COVID-related delays more so than other OEMs.”

    All that “seriously affected our ability to meet the continued and robust consumer demand for Canada’s favourite car.”

    “We continue to make supply chain investments and are working closely with our partners globally to resolve the issues that impacted our ability to build Civics at the rate consumers were looking for in 2022 and … have in the past,” Honda Canada spokesman John Bordignon said in a statement. “We look forward to renewing the competition for top spot this year.”

    Meanwhile, combined production of the Corolla in Japan and Blue Springs, Miss., rose “slightly” in 2022, with Blue Springs output up 3.4 per cent last year.

    “It’s really created a challenge for all industry members,” Dimitris said of the shortage. “The supply chain continues to stabilize and get more predictable. 

    “Corolla was one of the vehicles in our lineup where we were able to maintain relatively better supply versus some other models.”

    DesRosiers Automotive Consultants said whether the Corolla is able to retain its crown once the supply chain normalizes remains to be seen.

    “But for now, we have a new champion.”

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