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Automotive tax regulations in that country dictated the retention of a narrower body as utilized in previous Camry generations.However, overseas demand for a larger Camry resulted in the development of a wide-body XV10 sedan and station wagon that arrived in 1991.Strictly speaking, Celica Camry is not the first generation of Camry, but rather its predecessor.Celica Camry utilizes the front-engine, rear-wheel-drive layout and in A40 guise, a standard four-link rigid axle suspension system with gasoline inline-four engines displacing 1.6 liters for the 12T-U (TA41) and 1.8 liters with the 13T-U (TA46). In August 1980, Toyota released high-end models with four-wheel independent suspension, denoted A50 (front Mac Pherson struts, rear semi-trailing arm setup; four-wheel disc brakes).

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Originally compact in size (narrow-body), later Camry models have grown to fit the mid-size classification (wide-body)—although the two sizes co-existed in the 1990s.It was not until the narrow V40 ended manufacture in 1998 that the Camry in Japan was to again mirror the cars sold internationally.Japanese sedans dropped the Gracia suffix in 1999, although it was retained by the wagon until its 2001 demise.Narrow-body cars also spawned a rebadged sibling in Japan, the Toyota Vista (トヨタ・ビスタ)—also introduced in 1982 and sold at Toyota Vista Store locations.Diesel fuel versions have previously retailed at Toyota Diesel Store.

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