It’s safe to say that business is booming at Toyota. In 2024, it was the world’s largest automaker for the fifth year in a row. Earlier this month, Chief Financial Officer Kenta Kon highlighted the “strong demand for our products. We can barely meet the demand.” Looking ahead, the Japanese automotive giant is confident it can meet its 2025 sales forecast of 9.8 million vehicles, representing 4.7 percent year-on-year growth.
With thick order books and customers willing to wait, Toyota is reportedly comfortable extending its product life cycles further. From an average five-year run during the 2000s, to seven years, next-generation models can now last nearly a decade. According to Nicky Asia“flagship models” are expected to change every nine years.
In this context, “flagship” refers to core global models such as the RAV4 and Corolla, while region-specific vehicles will follow distinct strategies based on local market conditions. Toyota already has some of the longest life cycles in the industry, but that doesn’t seem to bother buyers. The company is confident that keeping the models longer will not alienate consumers.
These signs appear for a while. The current Corolla has been on the market since 2018, and a newly revealed concept suggests its successor is at least two years away. The outgoing RAV4 lasted seven years before being replaced a few months ago. An even more amazing example is the 4Runner, whose previous generation lasted an astonishing 15 years. However, the undisputed leader is the Land Cruiser 70 Series, which has been in production for an amazing 41 years.
Photo by: Toyota
Toyota’s plans to extend the life cycles of its flagship models to nine years will give the company more time to deliver more software updates. Electricity also plays a role, as hybrids and EVs stand to benefit from the upgrades that are released.
Not everyone supports the move. Some domestic dealerships have expressed concern about diminishing returns. The longer a car stays on sale, the more likely it is that dealers will need to offer bigger discounts to attract buyers, but these discounts cut into their margins.
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Source: Toyota
In response, Nicky Toyota has reportedly assured dealers that wholesale prices will remain stable over a nine-year cycle. Dealers profit from the difference between wholesale pricing and what consumers ultimately pay. Meanwhile, Toyota benefits from not having to redesign products as often, although in an increasingly competitive market, most life cycles tend to be shorter.
Ultimately, the decision comes down to consumer preferences. Some buyers want the latest model the moment it arrives, while others prefer the assurance of buying a vehicle that will mature over time. There is a long-standing belief that teething issues may occur in the early production years that resolve later in the model’s run.
With software now playing a huge role in vehicles, it’s understandable why some buyers might prefer to wait for a well-improved product rather than rush out to buy the latest version. I know I will.
