Toyota Motor Corporation is reportedly planning to lengthen the average lifecycle of its flagship models from roughly 7 years to about 9 years. This strategic move aims to channel its resources more effectively towards its electrification transformation and uphold product value through software updates. Nevertheless, models that are exclusively marketed in specific regions, like China, will adhere to their existing replacement schedules.

This decision stems from the current market dynamics, characterized by high order volumes and extended delivery times. By extending the lifecycle, Toyota anticipates providing consumers with more opportunities to acquire popular models. Additionally, Toyota intends to leverage Software-Defined Vehicle (SDV) technology to introduce new features to existing models, thereby boosting their residual value.

In tandem with these changes, Toyota is also set to revamp its channel strategy. Going forward, it will dynamically adjust the wholesale prices for dealers, taking into account the model and sales performance.