The automotive industry has been undergoing significant changes in recent years, with one of the most noticeable trends being the extension of the lifecycle of current car models. In the past, car manufacturers would typically replace their models every six to seven years, but now they are extending that lifespan to ten years or even longer.

Why is this happening?

What does it mean for car manufacturers?

What are the pros and cons?

Reasons for Extending Car Model Lifecycles

One of the main reasons automakers are choosing to extend the lifespans of their models is the slower-than-expected transition to electric vehicles (EVs). Although there is pressure on car manufacturers to shift toward EVs, the demand for electric cars is growing more slowly than anticipated. Producing EVs is expensive, and the market still faces challenges such as underdeveloped charging infrastructure and high purchase prices for electric vehicles. As a result, traditional combustion-engine cars are staying in production longer than originally planned.

Another factor is the economic slowdown. Developing new models is costly, and car manufacturers are dealing with rising expenses, particularly due to higher raw material prices and global supply chain disruptions. Rather than investing heavily in new models, companies are opting to optimize existing production and keep current models on the market for longer.

What Does This Mean for Car Manufacturers?

Extending the lifecycle of car models offers several advantages to manufacturers. One key benefit is cost savings in the development of new vehicles. Developing a new model can cost a company billions, so keeping current models in production with minor updates allows automakers to better manage their finances. This approach also enables companies to focus on other crucial areas, such as the shift to electric mobility, without the constant pressure to introduce new models.

Additionally, automakers gain more time to adapt to shifting market demands. For instance, Škoda has postponed plans to discontinue certain models like the Fabia (2021), Scala, and Kamiq (2018), extending their lifespans due to declining interest in electric vehicles. These models were originally set to be phased out by 2027, but now the target has shifted to 2030. Similarly, Suzuki’s Vitara, introduced in 2015, received another facelift in 2024, with no new model on the horizon.

Advantages of Extended Model Lifecycles

For consumers, this trend brings a number of benefits. Primarily, a longer lifecycle means car manufacturers focus more on the quality and reliability of their vehicles. Keeping a model on the market longer gives automakers more time to resolve early production issues and improve technology, resulting in more reliable and refined cars.

Additionally, the longer a model stays in production, the more likely it is that manufacturing costs will decrease over time, potentially leading to lower prices for consumers. Buyers also benefit from having more time to negotiate discounts or secure better financing options.

Disadvantages of Extended Model Lifecycles

On the downside, longer lifecycles could mean slower innovation from car manufacturers. Consumers who are eager for the latest technologies or designs may be disappointed by the longer wait for new models. In a rapidly evolving automotive world, where technologies like electrification, autonomous driving, and advanced driver assistance systems are becoming increasingly important, extending a model’s lifecycle could delay the introduction of these innovations.

Another issue is that older designs and technologies may become outdated. A model that has been on the market for eight years might seem out of touch compared to newer vehicles from competitors, potentially diminishing its appeal to customers looking for modern and innovative cars.

This opens the door for Chinese car manufacturers, who are more agile and able to introduce new models every five years, giving them a competitive edge in a market where change is constant.