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After the development finished, the Avanza and Xenia were launched in December 2003 for the Indonesian market. Toyota and Daihatsu invested a total of US$ 90,000,000 for the project.
The Avanza was also updated in 2008 with an updated ceiling with grooves to improve airflow to the rear and an updated interior colour scheme. In Thailand, the first-generation Avanza had been on sale since mid-2004.
As of December 2019 , the Avanza had been sold 1.8 million units. The Avanza had been the best-selling car in Indonesia for 13 consecutive years (between 2006 and 2019 respectively), before its position was being taken by the Honda Brio in 2020.
A twin model called Daihatsu Xenia also offered as a cheaper low-spec alternative to the Avanza in Indonesia. Generally, the Xenia is equipped with less safety equipment than the Avanza, while offering more dealer-installed accessories options such as front bumper guards, rear spoiler, or side body moulding to attract consumers.