The New CEO of Toyota Says There Are Too Many Models

Toyota sold 10,536,807 cars last year, including Lexus models. Demand increased by 3.7% in 2025, securing the sales crown for six years. While larger sales are good, automakers don’t always aim to maximize volume; higher profit margins can mean more money from fewer vehicles. CEO Kenta Kon seeks to improve the company by addressing issues. He observed that engineers may be overextended across many models and derivatives. He suggests streamlining the portfolio.

Going to a development division reveals problems like the growing number of distinct standards and variations being produced, which is raising expenses. We must examine those operations more closely if there are any parts that aren’t really adding value or where work isn’t being done effectively.

Toyota Rejects Upcoming EV and Retains 42-Year-Old SUV

Although Toyota has not yet disclosed which models would be discontinued, we already know that the Lexus LF-ZC will no longer be produced. Due to “fluctuations in market demand and the burden associated with vehicle development and manufacture”, plans for the electric sedan have been scrapped. To put it another way, the business was worried that there wouldn’t be enough consumer demand to cover the expenses associated with creating and manufacturing the high-end EV.

Toyota’s lineup is incredibly intricate, and the model that debuted in 1984 is the best example of the company’s wide range of offerings. Although it has been updated to stay current, the Land Cruiser 70 Series is still available for purchase in countries like Australia and Japan. However, it is still fundamentally a 42-year-old SUV, and that is perfectly acceptable. In addition to being essentially unbreakable and able to travel almost anywhere, the J70 will probably outlive its owner.

Increasing Production of Hybrids

Just over two months have passed since Kenta Kon took over Koji Sato’s position on April 1. According to Automotive News, the new CEO intends to be “making repairs and implementing changes” in other parts of the company in addition to acknowledging how the lineup has grown over time. One of the main tasks is to increase the production capacity of hybrid vehicles.

According to Reuters, Toyota’s new CEO has stated that the business will not be “pressing the brakes suddenly” when it comes to providing a variety of powertrain alternatives. This implies that rather than placing all of your eggs in one basket, the selection will continue to include gasoline, hybrid, plug-in hybrid, and even some diesel vehicles.

• Read More: Used Last-Gen Toyota RAV4 Hybrid Are As Costly As Brand New Models