Toyota to shake up Japanese dealership model?

Toyota Motor’s 5000 Japanese dealerships are facing a revamp in an effort to reduce the company’s dependence on new-cars sales.

Toyota reportedly told dealers last week it will introduce a system that allows all outlets to sell any model, as new technology like ride-sharing erodes traditional vehicle ownership, Nikkei Asian Review writes.

Four separate channels including Toyota, Toyopet, Corolla and Netz currently sell different models, but that will change in the early 2020s, with the exception of luxury brand Lexus.

Plans are also underway to halve its domestic line-up to about 30 of its most popular cars around 2025.

“We cannot survive as is,” a Toyota executive told Asia-Nikkei Review.

“Toyota must innovate or fail.”

Some dealerships have already started to change, with a Toyopet dealership in Nagoya installing a cafe at its redesigned store, while a Corolla dealer in Osaka sells camping goods alongside cars.