Toyota C-HR sales tipped to halve after up to $16,500 price rise

Toyota Australia has set significantly lower sales expectations for the second-generation C-HR than its predecessor as prices rise by up to $16,500 with the introduction of standard hybrid power.

However the Japanese car giant says it still considers the C-HR – which is now built in Europe, and incurs a 5 per cent import tariff – an important model despite its low sales volume.

From now until the end of the year, Toyota is projecting just 2594 sales for the new model that now sold exclusively with hybrid power, and competes against the likes of the Hyundai Kona, Nissan Qashqai, Mitsubishi Eclipse Cross, and GWM Haval Jolion in the small SUV segment.

For reference, the outgoing C-HR found 4786 new homes last year despite stock being all but exhausted from about July onwards.

However, prices are up significantly from before, with the new most affordable model rising $11,275 to $42,990 before on-road costs, while the top-of-the-range GR Sport is now $16,500 more expensive, at $54,990.

A generational change, a longer list of standard equipment, and the standard fitment of hybrid tech are attributed to some of the rising costs, but production has also switched from Japan to Turkey, adding extra tariffs and shipping costs.

So why bring in a new C-HR when the more practical Corolla Cross occupies the same space at a more affordable price?

Toyota C-HR chief engineer Toshio Kanei told Drive at the local launch of the new model that the latest model is designed to appeal to young couples and buyers who value style over practicality.

In other words, the Corolla Cross is for families and the C-HR is for fashion.

However, the new C-HR will also be unique in that only Europe and Australia will receive the coupe-like SUV, whereas the first car was offered in Japan, Thailand, China, and North America.

Kanei-san also revealed the first-generation C-HR was a surprise hit for Toyota when it arrived as its first small SUV, and encouraged the brand to build the more family-friendly Corolla Cross in the same segment.

However, getting the second-generation C-HR approved was a difficult, but important task, according to Kanei-san, as it proves Toyota can still be emotive and exciting in its