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Toyota Shifts Focus to SDV and After-Sales Services to Boost Profits
Consumer Durables · Motor Vehicles · yonhap_finance · 2026-09-07
Toyota aims to grow its value-chain operating profit to 3 trillion yen by 2030 by expanding software-defined vehicle services and its used-car business.
What Happened
Strategic Shift: Toyota is pivoting away from a business model reliant on one-time new car sales toward a more sustainable 'value-chain' approach. The company aims to increase operating profit from these services to 3 trillion yen by 2030, representing a 40% growth from current levels.
SDV Integration: As the automotive industry transitions to Software-Defined Vehicles (SDVs), Toyota is prioritizing over-the-air updates and post-delivery services. By enabling continuous improvements to safety and entertainment features, the company intends to secure long-term recurring revenue streams.
Used Car Expansion: The automaker plans to significantly grow its used car business, targeting an increase in annual domestic sales from 350,000 to 550,000 units by the 2030s. This includes offering retrofitted safety features for pre-owned vehicles to enhance customer value and loyalty.
Growth Targets: By targeting an annual revenue increase of 150 billion yen in this sector, Toyota seeks to insulate its financial performance from the volatility of new vehicle demand. This structural change is designed to stabilize earnings and drive long-term corporate growth.