Core Viewpoint - The article discusses the evolution of the Toyota Corolla as a symbol of affordability for the average consumer in Japan, highlighting the disparity between income growth and car prices over the decades, ultimately reflecting Japan's economic challenges [3][14]. Group 1: Historical Context of the Corolla - The Toyota Corolla has sold over 50 million units globally, representing a vehicle for the average person. In 1982, the price of the Corolla was about 20% of the average annual income in Japan, which has now risen to 50% [3][9]. - The first-generation Corolla was launched in 1966, priced at 495,000 yen, with an average annual income of 548,500 yen, resulting in a Corolla price index of 0.90, indicating it was difficult for the average person to afford [5]. - By 1979, the fourth-generation Corolla was introduced during a time when Japan was experiencing economic growth, with a price of 850,000 yen and an average income of 2.79 million yen, leading to a price index of 0.30 [7]. Group 2: Economic Impact and Price Index - The Corolla price index reached its lowest point of 0.27 in 1982, with the average income at 1.1 million yen, making it a representative vehicle for the average consumer [9]. - The sixth-generation Corolla, launched in 1987, had a price of 1.23 million yen, but the price index remained at 0.33 due to rising average incomes during Japan's bubble economy [11]. - The twelfth-generation Corolla, released in 2019, saw its price index rise to 0.55, indicating it was no longer an affordable option for the average consumer, with hybrid models priced at 2.4035 million yen [13]. Group 3: Comparison with the U.S. Market - In the U.S., the Corolla remains accessible, with an average price of approximately $27,000 against an average income of about $80,000 in 2023, maintaining a price index of around 0.30 [17]. - Over the past five years, the average price of the Corolla in the U.S. has increased by over 20%, while average income has also risen by 20%. In contrast, the Corolla's price in Japan has remained around 2.5 million yen, with only a 6% increase in income during the same period [17]. - The article highlights the disconnect between price and wage growth in Japan, illustrating the challenges faced by consumers in affording the Corolla compared to their American counterparts [17].
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