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/ The Lifecycle of a Vehicle Model: From Production to Phase-Out

Developing a new vehicle is a long process, often spanning more than a decade from initial concept to the end of production.

Before manufacturing begins, automakers spend several years in planning, design, and validation, often taking five to seven years before a new model reaches the assembly line.

Once production starts, most vehicle models follow a seven-year lifecycle, with manufacturing running at full scale for the first few years, followed by a mid-cycle update and, eventually, a gradual phase-out.

Here’s what happens after a vehicle enters production.

The Lifecycle of a Vehicle Model

Years 1–4: Mass Production Reaches Full Scale

Once a new vehicle model enters production, manufacturing gradually ramps up to full capacity. This is when the majority of units are built, and suppliers deliver components at a steady rate.

For most vehicle systems, a single supplier is awarded a design win and remains the source for that component throughout production. However, for certain critical parts – such as semiconductors, sensors, and batteries – OEMs sometimes approve multiple suppliers to reduce supply chain risks. In contrast, complex integrated systems like infotainment and ADAS software are typically sourced from a single supplier, as switching would require extensive revalidation.

What happens during this phase?

  • The vehicle is built at peak production levels.
  • Suppliers deliver components continuously.

Years 3–4: The Mid-Cycle Update (Facelift)

Around the third or fourth year of production, many automakers introduce a facelift – a mid-cycle update designed to refresh the vehicle.

Facelifts typically focus on design and software updates, rather than major technical overhauls. The budget for these updates is limited, which means most suppliers continue delivering the same components through the entire vehicle lifecycle.

Common facelift updates include:

  • Exterior and interior styling changes (headlights, bumpers, dashboard updates).
  • Software and UI improvements (infotainment, digital displays).

Years 5–6: Production Begins to Slow

By the fifth or sixth year, production volumes may start gradually decreasing as the model nears the end of its lifecycle. Automakers shift focus to its replacement model, which is already in development.

What happens during this phase?

  • Production volumes begin to decline.
  • OEMs phase out less popular configurations.
  • Suppliers continue deliveries, but demand for components starts decreasing.

Final 1–2 Years: Ramp-Down & Phase-Out

As the vehicle reaches the end of its lifecycle, production slows significantly. Newer models take priority, and OEMs begin transitioning factories, suppliers, and resources to the next-generation model.

This phase is carefully planned – OEMs don’t suddenly stop production overnight. Instead, output is gradually reduced, and suppliers adjust their production volumes accordingly.

In some cases, an outgoing model may continue to be produced in smaller numbers for specific markets, but for most suppliers, this marks the final stage of involvement before the next generation takes over.

Once production officially ends, the vehicle lifecycle is complete, and the focus shifts to its replacement – starting the process over again.

What happens during this phase?

  • The number of vehicles built decreases sharply.
  • Suppliers scale back component production.
  • Some models continue limited production for certain regions.
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