Toyota will increase the model update cycle by two years
Toyota is revising its strategy for updating its leading models. According to Nikkei Asia, the lifespan of key models will be extended from seven to nine years.
What is Known
According to the publication, the company will shift its focus from frequent generation changes to software updates, which will allow cars to remain modern for almost a decade.
The transition to a longer lifecycle is associated with sustainable demand and huge queues for certain Toyota models, such as the Land Cruiser SUV. This policy, the company believes, will stabilize sales and increase the liquidity of cars on the secondary market.
An important part of the new strategy will be changing the principles of pricing and dealer operations. Previously, the wholesale price of models typically decreased with age, and at the end of the lifecycle, large discounts appeared on them. Now, prices will be determined based on the demand for each specific model.
The implementation of a long lifecycle has become possible thanks to the growing importance of software updates. Instead of implementing all new features only with each generation change, Toyota will be able to make significant changes through regular software updates. This will allow new options, safety improvements, and interface enhancements to be added even after the car is purchased, keeping models current for many years.
Source: Nikkei Asia
