Photo: Toyota
Fifth-generation Toyota Prius promises to offer over-the-air updates, which is a first for Toyota. This is meant to sweeten the pill for those who think Toyota should’ve offered more EVs. It comes with another benefit, though, in the form of lower leasing costs for customers.
Toyota launched the fifth-generation Prius in November, impressing everyone with its styling. Indeed, the staple hybrid car has never been attractive, paying the price for its aerodynamic shape. Nevertheless, it looks like Toyota designers managed to blend form and function for a stunning appearance, dazzling everyone.
Less impressive was the fact that Toyota still bets on hybrid powertrains. Nevertheless, those who don’t care much about Prius having a combustion engine under the hood rejoice that it comes with over-the-air updates. This is a first for Toyota and something that even Volkswagen struggled with. It’s not just a gimmick, as some might think, but it can save money during ownership.
The over-the-air updates were pioneered by Tesla, but now every carmaker wants to offer them because customers love them. And it’s not just the new features that come to the car, it’s much bigger than that. Because of these updates, carmakers can keep them up to date with technology, helping them stay relevant for longer. This, in turn, allows cars to retain their value for longer.
Toyota’s leasing unit Kinto said that over-the-air updates allow it to lower the monthly payments by as much as 10 percent. This is a direct consequence of the lower depreciation at the end of the leasing period. Reselling the car will recoup more of the original price, so leasing customers will need to repay a smaller amount. The benefit was confirmed by Shinya Kotera, president of KINTO, the Toyota leaser unit in Japan, in a Reuters interview.
Nevertheless, Toyota will not offer the same OTA service as Tesla does for its vehicles. Kotera believes that Toyota customers would not pay extra for new technologies and want instead “something good, reliable, and inexpensive.” This mentality is what’s keeping Toyota from evolving in the EV era.
Less impressive was the fact that Toyota still bets on hybrid powertrains. Nevertheless, those who don’t care much about Prius having a combustion engine under the hood rejoice that it comes with over-the-air updates. This is a first for Toyota and something that even Volkswagen struggled with. It’s not just a gimmick, as some might think, but it can save money during ownership.
The over-the-air updates were pioneered by Tesla, but now every carmaker wants to offer them because customers love them. And it’s not just the new features that come to the car, it’s much bigger than that. Because of these updates, carmakers can keep them up to date with technology, helping them stay relevant for longer. This, in turn, allows cars to retain their value for longer.
Toyota’s leasing unit Kinto said that over-the-air updates allow it to lower the monthly payments by as much as 10 percent. This is a direct consequence of the lower depreciation at the end of the leasing period. Reselling the car will recoup more of the original price, so leasing customers will need to repay a smaller amount. The benefit was confirmed by Shinya Kotera, president of KINTO, the Toyota leaser unit in Japan, in a Reuters interview.
Nevertheless, Toyota will not offer the same OTA service as Tesla does for its vehicles. Kotera believes that Toyota customers would not pay extra for new technologies and want instead “something good, reliable, and inexpensive.” This mentality is what’s keeping Toyota from evolving in the EV era.
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