KATHMANDU: Toyota, the largest automaker in the world, has announced plans to build an after-sales ecosystem to power future growth.
Approximately 150 million vehicles manufactured by the Japanese automaker are currently on the roads all over the world. With 10.15 million vehicles sold in 2024, including models from its luxury Lexus brand, Toyota’s strategy is focused on maximizing value from its existing fleet.
Toyota accounts for about 9.15% of an estimated 1.64 billion vehicles currently in operation all over the world. This shows the potential for long-term revenue that the Japanese carmaker holds beyond new car sales. To tap into this opportunity, Toyota is expanding its portfolio of services, including spare parts, accessories, used vehicle sales, financing, insurance, and connected technologies such as navigation and streaming. These recurring services are expected to enable the company to generate revenue throughout a vehicle’s entire lifespan.
Since the launch of its first product, the Model G1 truck, in 1935, Toyota has built over 300 million vehicles as of September 2023. It surpassed one million units annually for the first time in 1968 and became the first automaker to produce over 10 million motor vehicles in a single year in 2012.
According to Chief Financial Officer Yoichi Miyazaki, Toyota’s vision now extends far beyond simply selling new vehicles. He said that the company aims to create a comprehensive ecosystem of products and services that provide value throughout a vehicle’s lifecycle-from the factory floor to the final mile on the road.
Toyota is regarded as a premium brand in Nepal. The company’s emphasis on aftermarket services presents strong growth potential for the brand in Nepal as well. Models like the Toyota Hiace are widely used in public transport across the country.
United Traders Syndicate Pvt Ltd, the official distributor, has been selling Toyota vehicles in Nepal since 1969. Among Toyota offerings in Nepal, the Land Cruiser and RAV4 are favored by government officials, diplomats and business leaders, while the Hilux remains a top choice for construction firms and hydropower projects.
