Toyota can’t keep up: Will extend the lifecycle of their cars

The world’s largest car manufacturer, Toyota, is extending the lifecycle of its core car models, according to several media outlets.

Instead of launching new generations every five or seven years, as has been the norm in the past, the Japanese car company is now aiming for a nine-year cycle for its flagship models such as the RAV4 and Corolla.

The decision is partly due to a desire to have more time to develop software updates and electric powertrains.

Toyota sees longer model cycles as an opportunity to make more improvements over the lifetime of a car without having to start from scratch with completely new generations.

Stable models and longevity

Toyota’s approach differs from that of several competitors, where faster model replacement is often used as a sales strategy.

However, according to Nikkei Asia, a Japanese car magazine, Toyota has learned that customers do not necessarily demand new designs every few years.

For example, the current Corolla design has been in production since 2018 and is not expected to be replaced until 2026.

Another example is the RAV4 SUV, where the latest model has just been launched after seven years.

At the same time, some models have achieved even longer lifespans.

the 4Runner was produced in its previous version for 15 years, while the 70-series Land Cruiser has been in continuous production for over four decades.

By extending the lifecycle, Toyota can reduce development costs and instead focus on software updates and optimization of existing components.

Hybrid and electric cars in particular benefit from continuous technical improvements that don’t necessarily require a new model generation.

Dealers are not entirely enthusiastic

However, the plan also raises concerns.

Some dealers fear that longer model periods could lead to price reductions that could hurt their profit margins.

To address this uncertainty, according to Nikkei, Toyota has promised that wholesale prices will remain stable throughout the model cycle.

Toyota has seen strong demand in 2025 and is struggling to keep up with orders.

The group expects to reach an annual production of 9.8 million cars in 2025, representing a growth of 4.7 percent.

The large customer base therefore provides a favorable starting point for experimenting with longer product cycles.

The success of this approach will depend on how the market reacts.

Some buyers prioritize the latest technology, while others prefer tried and tested models without teething problems.

The increasing importance of software and updates can make it easier to keep customers interested for longer periods without visible design changes.