Japanese market set to shrink
With a shrinking domestic market, the powers that be at Toyota Motor Corp have decided to halve the number of car models sold in Japan by 2025. The decision has been made in response to a declining trend as the Japanese population ages and the younger generation chooses alternative measures to car ownership.
Meanwhile, automakers worldwide are increasingly focusing their research and development efforts on electric vehicles (EVs) and autonomous driving technology.
Toyota will gradually cut the models down from 60 to 30 by 2025, according to an unauthorised spokesperson who was interviewed by worldwide news provider, Reuters.
The news comes close behind an announcement by Honda Motor Co Ltd, to end production at a domestic factory by 2022.
“As Toyota begins to develop EVs for markets including China, Europe and the United States, they will likely focus on making models which can be sold both at home and abroad,” says Yoshiaki Kawano, manager of Japan/Korea vehicle sales forecasts at IHS Automotive.