Toyota Offers Over-the-air Security Updates To Cut Rental Prices

JAKARTA - Toyota Motor Corp's leasing unit announced on Wednesday, December 7 that it will start offering over-the-air security updates to new Priuss, hoping to use Tesla's spearheaded approach to cutting rental prices and maintaining used car value in Japan.

According to Toyota's leasing affiliate, the leasing program will require customers to select services that are expected to lower monthly rental payments by 10%.

"This service marks the first time Toyota has updated its safety features, including a collisional avoidance system, for cars on the highway," said Shinya Kotera, KINTO president, Toyota rental unit in Japan.

Tesla routinely uses over-the-air software updates to increase charging speed on its electric vehicles, which open up additional battery ranges, and fix safety concerns.

Kotera said Toyota's approach would focus on costs for a newly released version of the Prius, a 25-year-old hybrid car that Japanese automakers see as a pillar of its strategy even as other major automakers switch to EVs.

"Tesla's customers, simple, high-income, and many of them are willing to pay for new and good things so that their products are hit with that market segment," Kotera said in an interview with Reuters on Friday.

"Toyota's customers are not like that. They are not people who want to pay extra for new technology. They are looking for something good, reliable, and cheap," he said.

Toyota launched a new Prius last month amid criticism from ESG investors and environmental groups for the slow launch of electric vehicles completely.

"The leasing unit wants to expand services to other vehicles within a year or two and is considering plans to make it a global offering," Kotera said.