Just 888 TRD vehicles have been delivered since the brand was established in Australia, with the last model set to roll off the production line on March 31, 2009.
The TRD Aurion accounted for 537 of this total since it was first launched 16 months ago, while the TRD HiLux sold 351 units in a much shorter space of time.
"Toyota has a responsibility to ensure its core business activities, and the people who rely on them, are protected for the long term," said David Buttner, senior executive director Toyota Australia.
All TRD owners will be covered by Toyota's new-vehicle warranty and the company would continue to supple parts in order to meet its legal obligations.
"Toyota made a significant financial commitment to TRD vehicle conversion and clearly understood short-term profitability was unlikely," Mr Buttner said.
All employees involved in the TRD performance branch will be located to a new role within Toyota.