Toyota dealers are heading into their annual dealer meetings today, and there’s a lot for the industry to talk about. Joining us on the latest episode of Inside Automotive is David Christ, Group Vice President and General Manager of the Toyota Division at Toyota Motor North America.
According to Christ, “We really focus on one customer at a time. You know, we kind of run our race.” He added, “We really focus on being number one in retail… And we’re having a good year.”
A major driver of that momentum, Christ said, is the redesigned RAV4, which launched earlier this year. Christ notes that the model was Toyota’s top-selling product and had just a two-day supply at the end of last month. Toyota has also expanded its battery-electric vehicle (BEV) lineup with the C-HR and bZ Woodland, bringing the brand to three BEVs with a fourth, the Highlander BEV, on the way.
The “multi-path” strategy
While the Highlander BEV will offer 320 miles of range and seven-passenger seating, it will give Toyota dealers another option for customers considering an electric SUV. Christ said the growing lineup reflects Toyota’s broader “multi-pathway” strategy, which gives customers a choice among hybrids, plug-in hybrids, BEVs and, in California, fuel-cell vehicles. However, rather than pushing consumers toward a single powertrain, Toyota is following what Christ says dealers and customers are asking for. That strategy appears to be resonating, with electrified vehicles accounting for 60% of Toyota sales in July, and Hybrids represented the majority of those sales.
Despite affordability remaining a persistent challenge across the industry, he said Toyota is taking a broad approach to keeping vehicles accessible. The automaker offers six models below $35,000, along with lower-priced grades across individual vehicle lines.
“We wanna make sure we have price points. Not only at the bottom of our lineup as entry points for our consumers, but also within each car line, we wanna offer lower, lower priced options.”
Throughout the conversation, Christ notes how he sees an opportunity to strengthen fixed operations as consumers hold onto vehicles longer. He called service and parts a “high margin business” and said the aging vehicle fleet should create additional demand.
AI moves deeper into the dealership
Meanwhile, Toyota continues to invest in its SmartPath digital retailing system, which connects the research customers complete at home with the dealership experience. The technology allows salespeople to see vehicle configurations, colors and equipment customers have already selected, reducing the need to restart the buying process when shoppers arrive at the store.
Additionally, Christ affirmed that Toyota’s inventory remains tight, as dealers currently have about a 12-day supply, with some high-demand models, including the RAV4 and Grand Highlander, down to single-digit days of supply.
Nevertheless, as Toyota dealers gather in Las Vegas, Christ said the message will be one of confidence, new products and partnership, with the Highlander BEV, refreshed Tundra and Sequoia and additional future products on the agenda. “We’re all in it together,” Christ said. “It’s a we’re-in-it-together message, and we’re excited about getting the dealers together, as always.”
