It starts with the Prius and has nothing to do with software updates.
Toyota today announced that it has started a retrofit upgrade service for new cars, starting with the Prius. The upgrade program is part of the Kinto Factory program and “enables retrofitting of safety and security devices and functions previously unavailable, such as the Advanced Park feature […] to cars equipped with Upgrade Ready Design,” said the automaker.
Basically, Toyota is starting to build cars with a mind to upgrading hardware long after a sale takes place. But how does Toyota make it feasible to retrofit older cars with newer tech? It all starts long before the car goes on sale “by anticipating the work required for upgrades at the development stage and designing systems in advance that can significantly reduce the time required.”
For now, the service that first opened on 1 January 2022 is only available in Japan and only on the Prius, but Toyota pledges to expand its upgrade menus and models “so that customers can continue driving their beloved cars for many years to come.”
For now, Japanese Prius owners have access to the Advanced Park feature with its remote function, blind spot monitoring, a surround-view monitor, rear pedestrian detection, and a steering wheel heater, even if these features were not selected when the Kinto Unlimited contract was signed.
These upgrades have standardized pricing across the country, and buyers can either make a lump-sum payment or they can add these features to their monthly subscription fee.
This is a novel approach, but it has similarities to existing after-sale upgrades. BMW has been promoting the idea of equipping cars with all the hardware any model trim may ever need and then unlocking the features a customer wants when they pay for them. The idea is that this will streamline production, reduce costs, and provide long-term value for cars, regardless of the spec they are ordered in. Toyota's idea is similar, but the hardware isn't on the car until the customer requests it.
We think this is a refreshing take on selling cars and upgrading them post-sale. Toyota is offering buyers real value for years, bucking the industry trend of offering no more than charged over-the-air software updates, which many buyers are starting to resent. Mercedes recently faced backlash after withholding the full performance of its EQS until buyers paid a four-figure subscription fee.
Pricing is somewhat irrelevant since the program is not yet offered in the US. When it is, we'll get market-specific pricing that may not relate to Japan's. What does matter is that this shows Toyota's forward-thinking approach.
Toyota revolutionized mass production when everyone else was satisfied with the status quo. Then, Toyota held back on electric vehicles, playing the long game to give it an edge that will be sustained for years to come, while others raced to be first to market. Now, it's going against expected business practices by encouraging buyers to keep their cars for as long as possible rather than suggesting these loyal customers replace them at the first opportunity.
This seems to be a great idea that will keep cars on the road for longer, thereby reducing Toyota's overall carbon footprint in the medium to long term. Moreover, it builds brand loyalty. Toyota's former CEO was a true visionary, and that forward-thinking approach appears alive and well under his successor's stewardship.
Keyword: Toyota Is Building Cars To Be Upgradeable, Not Replaceable