Also for 1998, the Avalon's structure was modified to improve safety[citation needed] while front seat-mounted side airbags became standard.

In Japan, it was the largest front-wheel drive sedan at Toyopet Store locations, and was sold alongside the front-engine, rear-drive Toyota Celsior, and was available in 3.0 and 3.0 G grade levels, with the "Coach Edition" available as an option starting in late 1997 (equivalent to the 1998 model year).

By contrast, its intended rivals, the Ford Falcon and Holden Commodore, were rear-wheel drive and offered a wider range of body styles and engine/transmission options.

[19] Toyota had originally decided to rename the Avalon as the Centaur for the Australian market, after the mythological creature of the same name.

However, the Australian hospital ship AHS Centaur had been torpedoed and sunk by a Japanese submarine during World War II and when Toyota Australia was made aware of this prior to the release of the car, they organised for the Centaur badges to be destroyed and removed the offending nameplate from all paperwork and advertising.

Because of these sales concerns, Toyota Australia marketed it towards taxi fleets, against the Ford Falcon, with a specially developed dual-fuel (LPG and gasoline)-compatible engine.

[26] At the 2003 Melbourne and Sydney International Motor Shows, Toyota Australia unveiled the X-Runner Concept, a coupe utility version of the Avalon.

Standard features include electroluminescent Optitron gauges, 4-wheel disc ABS, front torso side airbags and 15" alloy wheels.

Optional were a JBL audio system, Vehicle Stability Control, and a front row bench seat, allowing up to six passengers—a characteristic of large sized cars.

This was dropped in the third-generation Avalon; yet, the Toyota Highlander, Matrix, Sienna, and Scion models now offer such an inverter.

The Avalon received a mid-cycle facelift for the 2003 model year, with a new grille and modified headlights and tail lights.

[32] The Avalon underwent a redesign for 2005, and was unveiled to the public at the January 2005 North American International Auto Show.

The Avalon was the first Toyota to use Dual VVT-i in the US market in an all-new 3.5-liter 2GR-FE V6 engine which met ULEV certification and had a power output of 280 hp (209 kW) with a 0–60 time of 6.0 seconds.

The Touring trim offered faux aluminum and all-black leather interior, a sport-tuned suspension, unique powder-coated gray wheels, and a trunk lip-mounted spoiler.

The high-end Limited trim offered air-ventilated seats with a power driver's seat cushion length adjuster, Toyota's Smart Key System with keyless push-button start and entry, a quieter acoustic windshield, rain-sensing windshield wipers, an upgraded 12-speaker JBL audio system, "in-glass" LED turn signals on the side mirrors and a wood-trimmed steering wheel and shift gear lever.

Other options included a keyless Remote Engine Start, glass breakage sensor, rear window power sunshade and, on Limited models, a Dynamic Laser Cruise Control system.

The Avalon received a "Good" overall score in both the Insurance Institute for Highway Safety (IIHS) frontal offset and side impact tests.

Car and Driver, which had called previous Avalons "Japanese Buicks," rated it at the top of a group of large premium sedans in 2005.

[46][47][48] Consumer Reports rated the Avalon at the top of its tested group in the large and upscale category, scoring ahead of five other sedans in the January 2010 issue.

[49] In 2010, the 2011 model year Avalon competed against the Ford Taurus and received first place awards from Motor Trend.

The redesigned Avalon was partially revealed at the New York International Auto Show in April 2012, to be based on the same platform as the Lexus ES.

It includes a supercharged 3.5-liter V6 engine with Eaton Gen 6 TVS rotor assembly, six-speed automatic transmission, six-piston front & four-piston rear calipers, burgundy body color, tinted taillights, color-keyed grille and dual exhaust with polished mufflers, 19-inch wheels with Michelin 225/40R19 tires, a red stitching touch on the instrument and door panels, seats red stitching and accent piping and a JBL GreenEdge surround-sound system.

It includes 19-inch wheels with Michelin Pilot Super Sport 225/40R19 tires, JBL GreenEdge surround-sound system with 15-speakers, hybrid-blue headlights, turn signals, bright white with electric blue body color and the suspension and braking system from the 2013 model year TRD Edition.

The 2013 model year DUB Edition includes 22-inch-deep concave custom made satin black TIS wheels with Pirelli tires, lower sport suspension, custom body kit, tinted windows, taillights, emblems and plush diamond patterned suede seats.

Changes include a new front grille, updated suspension to improve ride comfort, revised wheel designs, and standard Toyota Safety Sense P. The "Touring" trim was also reintroduced for this facelift, this time as a more sporty variant of the top-of-the-line "Limited" trim.

[59] The fifth-generation Avalon debuted at the January 2018 North American International Auto Show in Detroit,[64] and went on sale in the US in May 2018.

[70] On 4 August 2021, Toyota announced that it would end production of the Avalon in the US after the 2022 model year as the market shifts towards SUVs and electrification.

[72] The facelifted Avalon for the Chinese market was launched on 28 March 2022, it retained the five trim levels from the pre-facelift model such as Progressive, Deluxe, XLE, Touring and Limited.