Toyota to Launch Car Subscription Service in Japan

Nagoya, Nov. 1 (Jiji Press)--Toyota Motor Corp. <7203> said Thursday it will launch a car subscription service for individual customers in Japan in early 2019. The service called KINTO will allow customers to switch cars without limit for a set monthly fee, the Japanese automaker said. The service will package procedures such as tax and insurance payments as well as vehicle maintenance, it said. The service will start in Tokyo and expand gradually, Toyota said. "As society shifts from owning cars to using cars, the KINTO beloved car subscription service is a new proposal to enable customers to more freely enjoy cars," Toyota President Akio Toyoda said in a statement. "If the customer wants to try another car, they can change cars, and if they no longer need the car, they can return it," Toyoda said. The automaker apparently hopes that giving drivers the opportunity to choose their favorite models to take test rides will encourage them to eventually purchase its cars in the future, informed sources said. Subscription-based business models, known for their application to music and video streaming services, are recently spreading to restaurant and many other industries. Companies offering subscription-based services that allow users to share products instead of possessing them find it advantageous to be able to build long-term relationships with their customers. Toyota's decision to start the car subscription service reflects concerns about a shrinking domestic vehicle market. The automaker's domestic vehicle sales are expected to fall to some 1.2 million units around 2025 from 1.63 million units last year if the current trend continues, Senior Managing Officer Yasuhiko Sato told a press conference in the central city of Nagoya. Toyota "aims to maintain 1.5 million units" in annual sales in Japan with the introduction of new services, including the car subscription service, Sato said. The new services also include car-sharing. Toyota said it will start a car-sharing service in Tokyo in February next year to allow customers to complete booking and payment on their smartphones. The automaker also said it will scrap its Toyota, Corolla, Toyopet and Netz sales channels in Tokyo in April next year to allow all outlets to sell all models. END