The Japanese OEMs have long offered a range of models specifically for Japan's domestic market. However, sluggish demand in Japan and tough profitability targets appear to be making them revise their domestic market strategies.

Honda recently said it would rationalise two Japanese vehicle assembly plants into one.  

It now appears that Toyota may be embarking on a major cull of its domestic-market-only model offerings. Reuters reported that it is aiming to halve the number of car models it sells at home by 2025.

The possible rationalisation comes as OEMs face challenges to spend more on emerging advanced technologies such as electrification and autonomous drive. Toyota is also attempting to tweak its organisation and culture to better meet the challenges ahead.

Reuters noted that Toyota currently offers about 60 passenger car models in Japan. The model variants for Japan only frequently share platforms and major components with other models to help reduce costs, but low-volume designs for the domestic market only are costly.

See also: Honda to close Sayama manufacturing plant

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