Toyota will extend the life cycle of its flagship vehicle series.

Video : Review of the new generation Toyota Fortuner SUV in Vietnam.

In the past, Toyota maintained a refresh cycle for its flagship models every 4 to 5 years, before extending it to 7 years from the 2000s. However, according to the latest reports from Japan, this number will be extended once again to 9 years.

Toyota said that with the new cycle, the company will focus on upgrading cars through software updates instead of "overhauling" the body and chassis. This trend has been partly demonstrated through the latest generation Camry model.

Toyota will extend the life cycle of its flagship vehicle series.

According to Nikkei, the focus on software could further strengthen Toyota’s already strong reputation for resale value. Accordingly, Toyota cars can hold their value even better thanks to performance upgrades, new driver assistance features and other conveniences added through software updates.

The move comes as Toyota struggles to meet market demand. Some models, such as the Land Cruiser, have long delivery times, which can lead to a situation where a new version is available by the time the car is delivered to the customer.

Accordingly, Toyota cars can retain their value even better thanks to upgraded performance, added new driving assistance features and utilities...

Overall, longer product life cycles will create more opportunities for customers to access quality models from Toyota, while improving resale value thanks to slower depreciation rates.

In fact, Toyota's new transformation is considered reasonable when key models such as Corolla, 4Runner, RAV4 always have stable sales, so the company is not under pressure to change its models soon.

Longer product life cycles will create more opportunities for customers to access quality vehicles from Toyota.

Other manufacturers have followed a similar strategy, including Stellantis with the Dodge Charger and Chrysler Pacifica. Tesla hasn't even updated the platform for the Model S and Model X since their launch.

However, the extended product life cycle also brings concerns. Toyota's previous tradition was to reduce wholesale prices over time, but now prices can be adjusted flexibly based on market conditions rather than just based on the age of the model.

Toyota's previous tradition was to reduce wholesale prices over time, but now prices can be adjusted flexibly based on market conditions.

This flexible pricing mechanism is said to be able to reduce the profit margin of some Toyota dealers. Because the main source of revenue for dealers is the difference between wholesale price and actual selling price. Toyota responded that the average wholesale price over the 9 years will not change.

Source: https://khoahocdoisong.vn/toyota-se-keo-dai-vong-doi-cua-loat-dong-xe-chu-luc-post2149070068.html