Price bounce for Toyota Camry

Toyota isn't discussing the starting price for its new Camry so far out from the local launch in November, but does admit that it will be more expensive than the current model.

Given the Camry Altise is presently priced from $26,490, the rise in price at entry level has the potential to be quite a lot more than a few hundred bucks...

The new Camry promises to be a comfier, more involving drive with advanced safety equipment across the range and much improved visual presence. Existing Camry owners will no doubt love it. Toyota is hoping to conquest buyers from other brands too, but for many prospective owners the Camry faces much stiffer competition for sales in the medium car segment once it ceases to be priced at small-car levels.

That is what the industry calls price elasticity, and it's essentially the problem facing Toyota Australia (TMCA) and its parent company TMC.

There's no point raising the price of the Camry by 15 per cent if sales halve as a result. It means fewer sales, and even less revenue, relatively speaking. But a 10 per cent price increase might reduce sales volumes by just five per cent...

It's one reason pricing is yet to be decided, according to Toyota Australia's executive director of sales and marketing, Tony Cramb. Another reason is that Toyota Australia is yet to decide the basic specification of each level of trim and drivetrain variant in the Camry range. What will be standard and what will be optional?

"We don't have a confirmed pricing position with TMC at this point," Cramb told motoring.com.au last week during the North American launch of the new Camry.

"But I think it is fair to say that the price will go up, because there's additional specification and additional investment in the vehicle itself... it's more a premium offering."

Cramb admits that Camry will lose ground in terms of market share and sales when the new model arrives.

"Obviously we have an infrastructure in place around Australia with the dealer network that relies on a certain level of [sales] volume, and it's our aspiration to maintain or increase our volume, despite the fact we know we're going to lose some volume out of this product. So the less we can lose out of Camry the less we have to make up.

"That's that fine balance that we're discussing with TMC."

Cramb also acknowledged that Toyota Australia finds itself in this position due to the need to sustain a local manufacturing operation. That demands more throughput, which in turn demands more sales, which calls for lower transaction prices. With the closure of the Altona plant looming that's no longer a consideration.

"The support that we've been giving to pay respect to our people, to our suppliers – in maximising a volume and hitting our committed volume – that will disappear.

"We'll talk pricing when we get to November."