Toyota 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 life cycle is linked to sustained demand and huge queues for certain Toyota models, such as the Land Cruiser SUV. This policy, according to the company, will help stabilize sales and increase the liquidity of cars in 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 usually decreased with age, and towards the end of the life cycle, they received big discounts. Now, the cost will be determined based on the demand for each specific model.
The implementation of a long life cycle has been made possible due to the growing importance of software updates. Instead of introducing new features only during generational changes, Toyota will be able to make significant changes through regular software updates. This will allow for adding new options, safety improvements, and interface enhancements even after the car purchase, maintaining the relevance of models for many years.
Source: Nikkei Asia
