I'd say it's probably got something to do with exchange rates. Also our distance from the Euro continent. Also competition as well. I may be wrong but I think the emergence of companies like Hyundai have given the traditional Japs something to think about.
But I think for sure, cars have come down in price in real terms.
In 1993 my dad bought a new Pulsar Q auto, steel wheels & hubcaps, no power windows or mirrors for $22,000.
Last year I bought my new work car-2009 Corolla Ascent auto, no alloys but front fast-glass and 7 airbags, ABS, VSC for $22,900.