Toyota’s New Strategy
Toyota is preparing for a significant change in its approach to car manufacturing. Previously, the company updated key models every 4-5 years, and then extended this cycle to seven years in the 2000s, but now the period between full redesigns will average nine years. Instead of changes to the body and chassis, the focus will be on software updates. This trend can already be seen in the example of the Toyota Camry, which received a deep modernization rather than a completely new generation.
Software Updates as an Alternative
According to the Nikkei publication, the updated strategy will allow Toyota to focus on electric vehicles, and software improvements will help maintain high car values on the secondary market. For example, through software updates, it will be possible to add new safety features, improve performance, or even introduce subscription services.
Impact on Demand and Supply
Extending the model life cycle will also help stabilize supplies, especially for popular vehicles like the Land Cruiser, for which there are already waiting lists today. In addition, slower generational changes will slow down car depreciation, which will positively impact their resale value.
Dealer Reaction
However, the new approach has caused concern among dealers. Toyota plans to review the wholesale price system, which previously decreased over time. Now the company is considering the possibility of dynamic price adjustments depending on market conditions. Some Japanese dealers believe this could reduce their profits, but Toyota assures that average wholesale prices will remain stable throughout the nine-year cycle.
Experience of Other Manufacturers
Other automakers have already implemented a similar strategy. For example, Stellantis did not update the Dodge Charger and Chrysler Pacifica models for a long time, and Tesla did not make significant changes to the Model S and Model X platforms for years. This confirms that quality cars can remain relevant through software updates, even without design changes.
These changes are occurring against the backdrop of a global slowdown in electric vehicle development, which is forcing manufacturers to seek new ways to maintain competitiveness. Software updates are becoming a key tool for ensuring long-term product value, especially in conditions where buyers are increasingly focusing on durability and stability, not just novelty.