Toyota Launches Subscription Scheme in Japan

Toyota Motor Corp. has formed a joint venture with a Sumitomo Corp. subsidiary to launch subscription lease programs in Japan for select Toyota and Lexus models.

Dubbed Kinto Co., the joint venture is capitalized at 1.8 billion yen ($16 million). Toyota will hold two-thirds of the company, with Sumitomo Mitsui Auto Service Co. owning the remainder.

The subscription services bundle insurance and regularly scheduled maintenance fees with traditional monthly lease payments. The programs, which were first reported by The Nikkei last November, are being introduced in metropolitan Tokyo before being deployed nationwide this summer.

The services enable subscribers to accumulate driving points that can be applied to help reduce monthly payments. The points will be awarded based on unspecified safety and “ecological” metrics.

The Lexus program (Kinto Select) starts this week in Tokyo. Customers will be able to lease one of six hybrid models (ES300h and IS300h sedans, RC300h sport coupe, UX250h, RX450h or NX300h), with the option to exchange models every six months for no additional charge. The three-year lease costs 194,400 yen ($1,770) per month.

The Toyota program, (Kinto One) is expected to begin in March and will cost between $420 and $900 per month. Buyers can choose among five models—Alphard, Corolla, Corolla Sport, Crown, Prius and Vellfire—and must keep the vehicle throughout the three-year lease. Prices range from 59,800 yen ($544) for the Prius to 106,920 yen ($973) for the top-end Crown sedan.

Additional models will be added for both programs later this year.

The Toyota/Lexus programs are the first vehicle subscription plans in Japan. Several carmakers are testing such services in the U.S. and Europe.