On Wednesday, Toyota Motor Corp's leasing unit said it would begin offering over-the-air safety updates on the new Prius, betting it could use an approach pioneered by Tesla to cut lease prices and preserve used-car values in Japan.
The lease program will require customers to opt in for a service expected to bring monthly lease payments down by 10 per cent, Toyota's leasing affiliate said.
The service marks the first time that Toyota will update its safety features — including the collision avoidance system — for a car on the road, said Shinya Kotera, the President of KINTO, the Toyota leaser unit in Japan.
Tesla has routinely used over-the-air software updates to improve charging speed on its electric vehicles, unlock additional battery range and fix safety issues.
Kotera said that Toyota's approach would focus on cost for the just-released version of the Prius — a 25-year-old hybrid that the Japanese automaker sees as a pillar of its strategy, even as other major automakers shift toward EVs.
"Tesla's customers are, to put it simply, high-income earners, and many of them are willing to pay for new and good things so that's why their products are a hit with that segment of the market," Kotera said in an interview with Reuters on Friday.
"Toyota's customers are not like that. They are not someone who would pay extra for a new technology. They are looking for something good, reliable and inexpensive."
Toyota unveiled the new Prius last month amid criticism from ESG investors and environmental groups for its slow rollout of fully electric vehicles.
The leasing unit wants to expand the service to other vehicles within a year or two, and is considering plans to make it a global offering, Kotera said.
Magnate's net worth had halved to $61 billion by Friday, after last week's report
Combined market cap of Adani Group's listed units has collapsed by more than $120 billion
The unemployment rate dipped to 3.4%, the lowest level since 1969
Value of transactions totalled more than Dh9 billion
Initiative seeks to find innovative solutions to challenges in the healthcare and transportation sectors
Traders were expecting losses at the Wall Street open
Payback on investment took place after less than six months