Toyota Mulls Plan to Slash Domestic Product Lineup 50%

October 12, 2017 at 10:58 AM

Toyota Motor Corp. expects to reduce the number of models it sells in Japan from 60 to 30 by 2025, a source tells Reuters. The carmaker currently offers 25 models in the U.S., its largest-volume market.

Toyota’s move, which follows Honda Motor Co.’s announced plan to close an assembly plant in Japan in 2022, signals a response to the need to maintain efficiency as the country’s car market continues to shrink. Reuters suggests that many of the cuts will target models sold only in Japan.

Carmakers also are anticipating the impact of a global shift to electrified powertrains. An analyst with IHS Markit opines that Toyota will develop electric vehicles that can be marketed worldwide, not just in Japan.