Toyota Company has experienced rapid growth in recent years. By 2024, the company remained the world’s largest car manufacturer for five consecutive years. The Chief Financial Officer, Kenta Kon, highlighted the strong demand for their products at the beginning of the month, stating that they could barely meet it. Looking ahead to 2025, the Japanese automotive giant is confident in meeting the full-year sales estimate of 9.8 million vehicles, representing a year-on-year growth of 4.7 percent.
With a thick order book and willing customers waiting, Toyota seems comfortable extending the lifespan of its products even further. The average five-year cycle extended to seven years in the 2000s, and the next generation models can now last for almost a decade. According to Nikkei Asia, replacements for “flagship” models are likely to come every nine years. In this context, “flagship” refers to core global models like RAV4 and Corolla, while region-specific vehicles will follow different strategies based on local market conditions.
Toyota has had some of the longest life cycles in the industry, but this does not seem to deter buyers. The company believes that maintaining models for even longer periods will not drive customers away. This confidence is already evident with the current Corolla being marketed since 2018, with its successor concept still at least two years away. The RAV4, on the other hand, ran for seven years before its replacement arrived a few months ago.
An even more striking example is the 4Runner, whose previous generation lasted for 15 years. However, the undisputed leader is the Land Cruiser 70 Series, which has been in production for an astonishing 41 years. Toyota’s plan to extend the life cycle of its flagship models to nine years will give the company more time to deliver software updates over the air. Electrification also plays a role as hybrid and electric vehicles will benefit from the ongoing improvements.
Not everyone supports this move, as some domestic dealers have expressed concerns about shrinking profits. The longer a car stays on sale, the more likely dealers may need to offer larger discounts to attract buyers, reducing their margins. In response, Toyota has assured dealers that wholesale prices will remain stable throughout the nine-year cycle. Ultimately, the decision depends on customer preferences. Some buyers want the latest model when it arrives, while others prefer the certainty of purchasing a mature vehicle over time. With software playing an increasingly significant role in vehicles, it is understandable why some buyers may prefer to wait for a thoroughly perfected product rather than hastily buying the newest release.
