Toyota targets $19.2 billion in new revenue by turning car ownership into a long-term business

Toyota is preparing for a future where owning a vehicle could bring customers new features, services and safety upgrades long after they leave the showroom. The strategy aims to improve convenience, extend vehicle life and strengthen safety while creating new revenue streams for the world’s largest automaker.

The Japanese manufacturer plans to generate about 3 trillion yen ($19.2 billion) in annual operating profit from its “value chain” business by the 2030 financial year. That represents an increase of around 40% from current levels as Toyota reduces its reliance on new vehicle sales.

Rather than depending mainly on selling new vehicles, Toyota wants to earn more from the 150 million Toyota vehicles already on roads across the world. The company believes software services, financing, maintenance, replacement parts and used-car sales will become increasingly important sources of income in the coming years.

At the centre of the strategy is Toyota’s Arene software platform, which enables vehicles to receive new functions after purchase. Drivers could buy smartphone-enabled upgrades that improve vehicle performance, convenience or safety without replacing their cars.

Toyota is also developing software-based safety features for used vehicles. This would allow owners of older Toyota models to access new safety technologies years after buying their cars, potentially making used vehicles safer and more attractive in the marketplace.

The company is expanding well beyond software. Its value chain business also includes vehicle financing, leasing, insurance, replacement parts and maintenance services. By strengthening these businesses, Toyota hopes to keep vehicles on the road for longer while maintaining closer relationships with customers throughout the ownership journey.

Used vehicles are expected to play a major role in the plan. Toyota reportedly wants annual used-car sales in Japan to increase from about 350,000 vehicles to 550,000 by 2030. Many of these vehicles could be sold with optional software upgrades and safety packages, creating additional revenue after the initial sale.

The strategy reflects a broader shift across the automotive industry. Connected vehicles and software-defined cars are changing how manufacturers generate income. Instead of relying solely on one-time vehicle purchases, automakers are increasingly building recurring revenue through digital services and subscription-based features.

Toyota’s approach also comes as the global automotive market faces slowing sales in several regions and growing competition, particularly in China. Diversifying revenue could help reduce the company’s exposure to fluctuations in new vehicle demand while supporting more stable long-term earnings.

For consumers, the strategy could deliver continued access to new technology without purchasing a new vehicle. However, it may also mean that more features become optional paid upgrades rather than standard equipment, marking a significant change in how drivers experience vehicle ownership.