Toyota Extends Core Model Lifespans: A Nine-Year Strategy Revealed

Toyota is planning to extend the lifespan of its popular models to nine years as it shifts its focus towards software updates and electrified drivetrains. This move, as reported by The Nikkei, is aimed at keeping core models fresh for longer periods of time.

The company’s decision to lengthen the lifecycle of its top-selling models comes in response to the increasing importance of software-defined vehicles and over-the-air updates in the automotive industry. By adopting this strategy, Toyota hopes to better manage the high demand for certain models like the LandCruiser, which often have lengthy waiting lists.

In addition to prolonging the model cycles, Toyota is considering changing its approach to setting wholesale prices. Currently, wholesale prices in Japan automatically decrease as a car ages, allowing dealerships more flexibility in offering discounts to move older inventory. However, Toyota is exploring dynamic pricing based on sales data, a move that is facing resistance from third-party owners of Toyota dealerships in Japan.

If The Nikkei’s report is accurate, the shift to longer model lifecycles represents a continuation of a trend seen in the automotive industry. Japanese manufacturers have progressively increased the average lifecycle of key models over the years, moving from four to five years in the 1980s and 1990s to seven years in the 2010s.

It remains to be seen whether Toyota’s models with extended lifecycles will receive additional facelifts during their lifespan. The definition of a new-generation model is also up for debate, as exemplified by Toyota’s classification of the latest Camry despite its similarities to the previous generation.

Notably, larger off-road SUVs and utes have historically had longer lifecycles, as demonstrated by the Prado, which was replaced after 14 years. This approach aligns with Toyota’s strategy of keeping core models on the market for extended periods to meet customer demand and maintain resale value.

In conclusion, Toyota’s decision to extend the lifecycle of its popular models reflects a broader shift in the automotive industry towards longer model cycles and a greater emphasis on software updates and electrified drivetrains. By adapting to these changes, Toyota aims to stay competitive in the evolving market while meeting customer needs and maintaining the value of its vehicles.