1. Changing Market Demands: The demand for compact cars like the Starlet declined as consumers shifted towards larger, more versatile vehicles like SUVs and crossovers.
2. Safety Regulations: Evolving safety regulations and standards presented significant challenges for manufacturers to maintain older vehicles like the Starlet while meeting new safety requirements.
3. Emissions Standards: Increasingly strict emissions regulations in various countries made it costly and challenging to continue production of the Starlet while complying with regulations.
4. Production Focus: Toyota reorganized its production focus to align with changing consumer preferences, investing in and introducing new models that catered to the growing segments.
5. Production Costs: The production costs of the Starlet, including parts and labor, became less viable as the model aged. Newer models offered improved features and better cost-effectiveness.