KHWAJA MOINUDDIN CHISHTI

LANGUAGE UNIVERSITY

RESEARCH PROJECT REPORT ON

“Toyota”

Submitted for the fulfilment of the requirements

for the award of the degree of
MASTERS OF BUSINESS ADMINISTRATION

SUBMITTED TO SUBMITIED BY
Prof. Dr. Musheer Ahmad Sufiya Parvez

HEAD OF DEPARTMENT Enrolment Num: B-2383

KMCLU, LUCKNOW MBA 1st Semester

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 Student Declaration

“I, [Sufiya Parvez], declare that the Master by Research exegesis entitled [title of
exegesis] words in length including quotes and exclusive of tables, figures, appendices,
bibliography, references and footnotes. This exegesis contains no material that has been
submitted previously, in whole or in part, for the award of any other academic degree or
diploma. Except where otherwise indicated, this exegesis is my own work”.

Sufiya Parvez

MBA 1st

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 ACKNOWLEDGEMENT
I take this opportunity to express my sincere gratitude to everyone who has directly or indirectly helped
me in completing the project successfully.

I own profound intellectual debt to Prof. Dr. Musheer Ahmad who notwithstanding his busy
schedule and personal commitments has been guiding the force and a source of encouragement and
helped me throughout the course of my project & for being an inspirational force and devoting genuine
interest throughout the progress of the project, interacting with him. I learnt a few important aspects of
professional management and I am sure the knowledge imparted to me will help me to enrich my career
in the long run.

I express my gratitude for Prof. Dr. Musheer Ahmad for providing me an opportunity to have
his valuable guidance and continuous monitoring.

I take this opportunity to thank my family members, friends without their cooperation I would not
have been able to complete this project.

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 PREFACE
The “Toyota Motors “contains information and data about the company which includes Executive
Summary , Industry Overview , Sector Composition Market Size , Key Trends ,Contribution to
Economy , Company Overview, About the Company (History or Background) , Company’s Market
Share ,Products Offered by the company , Existing
Competitor, Business Policy of Selected Company
(R&D/CSR/HR/Marketing/Financial
Policies Analysis of Business Strategy , Marketing-Mix(4P’S/ 7P’S) ,PESTLE , SWOT Analysis ,
Conclusion & Recommendations.

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 Table of Content
Sr No. Title Page No.

1. Student’s Declaration 1

2. Acknowledgement 2

3. Preface 3

4. Table of Content 4

5. List of Tables 5

6. List of Charts 6

7. Executive Summary

8. Industry Overview 7-22

Sector Composition
Market Size
Key Trends
Contribution to Economy

9. Company Overview 23-80

About the Company (History or
Background) Company’s Market Share
Products Offered
Existing Competitors

10. Business Policy of Selected Company 21-97

(R&D/CSR/HR/Marketing/Financial
Policies

11. Analysis of Business Strategy 98-109

Marketing-Mix (4P’S/ 7P’S)
PESTLE
SWOT Analysis

12. Conclusion & Recommendations data) 110-111

13. Screenshots of Data Procurement 112-113

14. Bibliography 114

15. Glossary of term 115-116

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 List of Tables

Table No. Table Title Page No.

1. toyota Motors registered total sales of 38-39

82,954 units in October 2023

2. Total Toyota registered total sales of 53-57

82,954 units in October 2023

3. Market cap of toyota 58-61

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 List of Charts

Chart Chart Title Page No.

No.

India Automobile Market Trends

1. 10
2. U.S. Commercial Vehicles Market 12

3. India Automotive Market 14

4. Market share of toyota 62

5. Market Share of different companies 37

6. Total revenue of Toyota from financial year 2010 to 2023(in 45

billion Indian rupees)

7. Market share of commercial vehicles across India in financial 22

year
2021 and 2023, by manufacturer
8. Market share of commercial vehicles across India in financial 57
year
2021 and 2023, by manufacturer
9. PV Sales Analysis FY23: Indian OEMs inch closer to sell 1 of 65
every 4 cars sold in the country

10. Competing analysis of Toyota Motors 67

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Industry Overview

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Sector Composition
India Automobile Market Analysis

India's Automotive Market was valued at USD 100 billion in 2021 and is expected to reach USD
160 billion in 2027, registering a CAGR of 8.1% over the forecast period (2022-2027).

India is a well-recognized Automobile manufacturing hub worldwide because of its low-cost

production. Cheap labor, easy availability and low cost of raw materials, and a weak currency
are the factors driving the manufacturing Industry. India is the 4th largest producer of
Automobiles in the world, with an average annual production of more than 4 million motor
vehicles.

Although vehicle production was hampered due to the global pandemic and worldwide
lockdown, now, as the situation is easing, the number of vehicles produced is expected to
increase in the upcoming years. For instance,

In 2019 a total of 4.5 million vehicles were sold in the country, and in 2020 the number dropped
by about 3 %. However, in 2021, the number of vehicles produced rose by about 30% compared
to 2020. Hence, considering the rising demand and the production in full swing, the number of
vehicles produced is expected to increase during the forecast period.

Due to the rise in the middle-class income and rising young population, the India Automobile
market is expected to witness strong growth. Additionally, due to the rising demand for
automobiles, export from the country has also seen a significant increase. For instance,

From April to December 2021, Indian automobile exports were 424,037 units, up from 291,170
units from April to December 2020.

Major players in the passenger car segment include Maruti Suzuki, Tata Motors, Hyundai Motor
Company, Mahindra and Mahindra, Kia Motor Company, and others. Players in the two-wheeler
segment include Hero Moto Corp., Honda, TVS, Bajaj, Royal Enfield, and others.

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India Automobile Market Trends

This section covers the major market trends shaping the India Automobile Market according to
our research experts:

Rising Investments and Government Initiatives are Expected To Drive the Market

The automobile sector accounts for 7.1% of India's GDP and 49 % of manufacturing GDP.
Hence, the automobile sector in India is a significant driver of macroeconomic growth and
technological advancement. So, the government is focused on increasing the share of the
automobile industry by introducing various norms and schemes.

By 2023, the Indian government expects the vehicle sector to receive USD 8-10 billion in
domestic and foreign investment.

For instance, the Prime Minister introduced the Make in India program in 2014 as part of a
broader set of nation-building efforts. Make in India was designed as a timely solution to a crisis
to transform India into a global design and manufacturing hub.

As a result, many manufacturers are investing in new manufacturing plans and existing plants to
cater to the increasing demand for the production of vehicles in the country. Like in July 2021,
Maruti Suzuki India stated that it would invest INR 18,000 crore (USD 2.42 billion) in a new
production facility in Haryana, with an annual manufacturing capacity of 7.5-10 lakh vehicles.

Additionally, in 2021, the Government of India introduced a new vehicle scrappage policy, where
the key objective was to identify and scrap unfit automobiles from the road. This is done to
reduce the emission of more greenhouse gases from the older vehicles and make way for the
new vehicle compliant with BS6 (Bharat Stage 6 - similar to Euro6) emission norms.

When scrapping an old vehicle, vehicle owners may be eligible for tax savings as an incentive.
As a result, the recycling business will generate more cash. Compared to older automobiles, the
new vehicles will be safer, aiding the overall automobile market in India.
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Electric Vehicles Segment is Expected to Witness Significant Growth

In India, about 300,000 electric vehicles were sold in 2021, a 168% increase over the 100,000
units sold the previous year, with passenger EV sales in India tripled in 2021 to about 15,000 units
and are still showing signs of growth.

The government of India has undertaken multiple initiatives to promote the manufacturing and
adoption of electric vehicles in India to reduce emissions and develop e-mobility in the wake of
rapid urbanization.

The National Electric Mobility Mission Plan (NEMMP) and Faster Adoption and Manufacturing
of Hybrid & Electric Vehicles in India (FAME I and II) helped create the initial interest and
exposure for electric mobility.

As of June 2021, in phase two of the FAME scheme, 87,659 electric automobiles have been
sponsored through incentives, and 6,265 electric buses have been sanctioned to various state/city
transportation undertakings, totaling INR 871 crore (USD 117 million).

Hence in 2021, the government announced an extension of phase two of the FAME scheme
through 2024. This phase focuses on the electrification of public and shared transportation through
subsidizing e-buses, electric three-wheelers, electric passenger vehicles, and electric two-
wheelers.

The Indian government has also provided tax exemptions and subsidies to EV manufacturers and
consumers to promote the domestic electric vehicle industry. As per the phased manufacturing
proposal, the government has imposed a 15% customs duty on parts used to manufacture electric
vehicles and 10% on imported lithium-ion cells.

With 100% FDI allowed, new production centers, and a greater drive to improve charging
infrastructure, India's electric vehicle sector is picking up speed. Other development factors for
the Indian EV sector include federal subsidies and policies supporting more significant discounts
for Indian-made electric two-wheelers and a boost for localized ACC battery storage
manufacturers. Improved government regulations and policies, like no license required to operate
EV charging stations in India, further aid the market's growth.

With the increasing sales of electric vehicles in India, automakers are investing in developing
new technologies and electric infrastructure and increasing their production capacities to
accommodate the demand. For instance,
• In November 2021, Indian Oil Corporation and other public oil companies exclaimed
aff 22,000 electric vehicle charging stations over the next 3-5 years.
• In May 2022, Toyota Group revealed plans to invest INR 48 billion (USD 624 million) in
India to manufacture electric vehicle components.

Hence, the India Automotive Market is expected to witness robust growth in the forecast period
due to the aforementioned reasons.

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India Automobile Industry Overview

The India Automotive Market is reasonably concentrated, with the top five players having most
of the market share in all the segments. The major players in the passenger car segment include
Maruti Suzuki India Limited (Suzuki Motor Corporation), Tata Motors Limited, Hyundai Motor
Company, Mahinda and Mahindra limited, and Honda Motor Company.

The two-wheeler market is also concentrated, with major players occupying the majority share
of the market. The key players in the two-wheeler market include Hero MotoCorp Limited,
Honda Motorcycle & Scooter India Pvt. Ltd. (Honda Motor Company), TVS Motor Company,
Bajaj Auto Limited, and Royal Enfield (Eicher Motors Limited)

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 Market Share

Major players in the various segments are investing in R&D and infrastructure to gain the upper
hand. For instance,

• In October 2021, Tata Motors revealed intentions to invest up to USD 2 billion in India
over the next four years to develop ten new electric vehicles.
• In December 2021, Hyundai Motor aimed to invest INR 4,000 crore (USD 531.12
million) in India by 2028 to launch six new electric vehicles.
• The contribution of this sector to the National
• GDP has risen to about 7.1% now from 2.77% in 1992-93. It provides direct and indirect
employment to over 19 million people.
• In the automobile market in India, Two-wheelers and passenger cars accounted for 77%
and 18% market share respectively during the year 2021-22. Passenger car sales are
dominated by small and midsized cars. Export of the total number of automobiles
increased from 4,134,047 in 2020-21 to 5,617,246 in 2021-22, registering a positive
growth of 35.9%
• India aims to double its auto industry size to Rs. 15 lakh crores by end of year 2024.
There has been an FDI inflow of $33.77 billion in the industry from April 2000 till
September 2022 which is around 5.48% of the total FDI inflows in India during the same
period.

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AUTO PRODUCTION IN INDIA

DOMESTIC SALES OF AUTOMOBILES IN INDIA

AUTO EXPORTS FROM INDIA

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 Key Trends
The future trends in the automobile industry predict a roller-coaster ride for players. In 2023,
the automotive industry will face global headwinds such as the energy crisis, slower global
demand, and ongoing supply-chain issues. Despite these challenges, global new-vehicle sales
are projected to remain flat, with new-car sales increasing. Sales of electric vehicles (EVs) are
expected to grow, although governments may restructure their incentive programs.

In 2023, global car sales are expected to top 69 million. Greater market access in developing countries and
emerging markets fuel it. This has led to the growing adoption of electronic vehicles in China and
India.
Increased government focus on charging networks will be needed to support the expanding EV
fleet. The autonomous vehicle sector will advance as UN regulators lift their speed limit. Let’s
have a sneak peek at car industry trends that will shape 2023.

1. Increasing production of digital vehicles

Automakers and technology giants like Google and Tesla are incorporating more digital
technology into their cars. This has created a competition to develop automotive software and
digital systems to power and control innovative electric vehicles, resulting in cars produced in
2023 and beyond being full of technology to address digital touchpoints.
2. Rise in online sales
North American and European automakers offer consumers the option to buy vehicles online
without visiting dealerships. With a computer or smartphone, buyers can choose desired features,
secure financing, and even take virtual walk-around and test drives. In 2023, more dealerships
are expected to offer online sales, vehicle inspection, and home delivery.

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3. The rising preference for pre-owned/used cars
The demand is highest for vehicles under four years old, which have the latest technologies but
are less expensive than new cars. This includes pre-owned electric and hybrid vehicles, and
dealerships now offer certified pre-owned cars that look and function like new ones at a lower
cost. Low APR financing options make pre-owned vehicles an attractive choice.

4. Rise in connected cars

Connected cars are vehicles that use wireless means to connect to the Internet of Things. They
offer a safe, comfortable, and convenient multimedia experience with on-demand features that
allow users to browse the web while in their vehicle. They provide various features such as
remote diagnostics, vehicle health reports, 4G LTE Wi-Fi hotspots, turn-by-turn directions, and
warnings of car health issues. The technology has already processed over a billion customer
requests and is set to overgrow in 2023 with predictive intelligence and maintenance technology.

5. Rise in autonomous self-driving cars

Self-driving vehicles are becoming increasingly common and will continue to do so in 2023.
Research has indicated that autonomous cars are safer, reduce downtime, expand the last-mile
delivery scope, and improve fuel efficiency by 10%. Additionally, several trucking companies
have tested self-driving technology, and it will soon become commonplace, with fleets of
autonomous trucks sharing the road with traditional vehicles.

6. Launching of fuel cell EVs

Fuel-cell electric vehicles will emerge worldwide in 2023 due to their faster recharge, extended
range, and zero emissions. Major car, truck, and SUV manufacturers are investing in fuel-cell
electric vehicle development, with the support of countries like China, Germany, Japan, South
Korea, and the United States. This could be the year when fuel-cell electric vehicles finally break
through.

7. More automakers collaborating with tech companies

Automakers and technology companies are forming partnerships due to vehicles’ constantly
evolving tech requirements. This is especially necessary for electric, connected, and autonomous
vehicles, which require specialized software and advanced technology to function safely. To
avoid massive investments in their technology divisions, manufacturers are partnering with tech
companies to design and produce the new operating systems necessary for the next generation
of technologically advanced vehicles. More partnerships are expected in 2023.

Top 5 Automotive Marketing Trends in 2023

Now, let’s look at the most prominent auto industry trends shaping the automotive marketing
landscape:

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1. Evolving video marketing & environmental sustainability
Consumer trends in automotive industry reveal that short videos are more effective than text in
converting leads into customers in the automotive industry. Dealerships can take advantage of
various videos, such as how-to videos, car highlights, and customer testimonials. Car dealership
tours are also gaining a lot of traction.

Dealers and sellers can leverage them through videos or virtual reality. More and more customers
today are prioritizing environmental sustainability. Therefore, you should focus on
environmentally conscious manufacturing processes and eco-friendly cars like electric vehicles.

2. Rise in VR tech adoption

The metaverse is gaining momentum as VR technology improves. Car dealerships are no
exception, as recent auto trends reveal that customers prefer to experience a car or dealership
before purchasing. VR allows customers to explore a car in detail without visiting a dealership.
Top car brands and dealerships are embracing VR as part of their dealership photography
strategies to improve the customer experience.
3. Optimizing mobile experiences & personalization
Smartphones are now vital in car purchases. Consumers thoroughly research their preferred car
on their mobile phones, searching for the best offers and dealerships in their area. Therefore,
websites must be easily readable and accessible on mobile devices, with clear calls to action.
Personalization is an important part of the mobile experience. Brands provide specific offers by
analyzing your needs, preference, and behavior.

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4. Upgrading built-in messaging apps & voice search
Chatbots and messaging solutions are key technology trends in the automotive industry. These
tools enable dealerships to handle inquiries efficiently, freeing time for other tasks. They also
facilitate the management of maintenance and repair appointments, streamlining dealership
operations. Voice search assistants also optimize their interface for advertisements and voice
search queries.

5. Increase in digital advertising spending

In 2022, the automotive industry’s digital marketing spending increased to $17 billion and is
predicted to keep growing in 2023. Experts anticipate a rise in digital advertising spending,
driven by the growing mobile and social media usage rates. Dealerships need a strategic plan to
capture potential buyers at different stages in the car buying process, using social media
marketing, click-to-call conversions, and messaging apps to attract online shoppers.

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 Contribution to Economy

The automobile industry in India accounts for 12 percent of the Gross Value Added (GVA)
in the manufacturing sector. Recognized as a core sector, the auto industry contributes 49
percent to India’s manufacturing GDP, 7.5 percent to the GDP at large, and is responsible
for 32 million jobs.
However, this $100 billion industry faces headwinds of chip shortage, overbooking, rural
distress, fuel price-led inflation, and skyrocketing commodity prices. Read on to know more.

The Indian automobile industry is an inspiring success story. In the past four decades, it emerged
as a shining light to catalyze India’s Gross Domestic Product (GDP) and the whole economy.

The global management consulting firm McKinsey, termed the automobile industry as one of
India’s core sectors, estimating the manufacture of transport equipment to be worth up to 12
percent of the Gross Value Added (GVA) in the manufacturing sector.

As one of the leading driving forces of the economy, the auto industry contributes to about 49
percent to India’s manufacturing GDP and 7.5 percent to the GDP at large. The auto realm’s
value chain is responsible for 32 million jobs.

Interestingly, the Indian automobile market overtook Germany, Europe’s largest economy and
export powerhouse, to emerge as the world’s fourth largest in 2018, valued at nearly $100 billion.

The industry, estimated to account for 65 million jobs by 2026, has gone through many
disruptions that began around the outbreak of the Coronavirus pandemic. Chip shortage, multiple
and duplicate bookings, rural distress, fuel price-led inflation, a steep hike in commodity prices,
container shortage, and surging logistics costs, are some of the challenges disrupting the Indian
automobile industry.

Drop in Sales

Domestic automobile sales dropped to the lowest level in India in nine years to 17.51 million in
2021 – 22. Earlier, the low was reached in 2012 – 13 when total wholesale fell to 17.82 million,
according to the Society of Indian Automobile Manufacturers (SIAM).

Two-wheeler sales took the biggest hit, falling to the lowest rate in a decade in 2021 – 22 to log
13.4 million units. The last time sales were so low was back in 2011 – 2012 when the sales were
at the same rate. Within two years of unlocking the all-time highest two-wheeler sales of 21
million units in FY19, the numbers tumbled to the low registered in 2021 – 22.

Even decent sales of electric two-wheelers (300,000), could not offset the lows touched in the
overall two-wheeler sales. Similar was the case with internal combustion engine (ICE) powered
three-wheeler sales, which logged only 260,000 units, almost 50 percent lower than the highest
sales volumes.

Exports show an optimistic outlook

Despite the depressing domestic performance of the automobile industry, pockets of exports have
extended some optimism in the outlook. Passenger vehicle exports logged the highest numbers

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in eight years, 576,000 since 2013 – 14, rising from 440,000 units in FY21. India achieved its
highest passenger vehicle exports of 596,000 units in 2013 – 14.

Meanwhile, two-wheelers' exports put up a better show, logging exports of 4.4 million units,
translating into the highest ever growth in exports.

Under-utilization of capacity

In 2021 – 22, India had an installed automobile production capacity of nearly 35.5 million units
but only 22.9 million automobiles were manufactured. Though the 7 million units production
capacity belonged to passenger vehicles, only 3.6 million were made.

Including commercial vehicles, four-wheelers manufacturing capacity utilization was estimated

to be 63.64 percent, whereas for two and three-wheelers it was around 61 percent.

Unused manufacturing capacity aggravates layoffs, a drop in job creation potential and
investment, and eventually affects the economy.

In the past five years, as many as five manufacturers—UM Motorcycles, MAN Trucks, Harley
Davidson, and Ford—quit production in the South Asian country, indicating that some
challenges are being faced in the Indian economy.

CRISIL Director Hemal Thakker notes the income of people in the upper and upper middleend
of the income pyramid is now higher than two years ago, which is to have little effect on all car
segments, except entry-level cars in 2022 – 23.

Vinkesh Gulati, president of the Federation of Automobile Dealers Association (FADA), hopes
that FY23 will be better than the previous fiscal, owing to normal monsoon forecasts which
could give rise to normal crop production.

Considering that most people are now vaccinated against COVID, their immunity is expected to
be better. Thereby more money is saved from healthcare expenses to fund the purchase of two-
wheelers, cars, tractors, and other automobiles.

Chip shortage

After the Coronavirus outbreak, supply chains to the automotive industry have been disrupted.
Irregular automobile production and quicker than anticipated recovery in some markets, has
emerged as a crisis.

In addition to the demand from the auto industry for chips, whose production is interlinked to
several geographies for components, work from home driven demand for computers, cell
phones, and other electronic gadgets amid the Coronavirus pandemic outstripped chip supplies.

According to Maruti Suzuki’s Chief Executive and Managing Director, Hisashi Takeuchi, the
chip shortage will continue, but he outlined that the circumstances could fare better than last
year.

Kavan Mukhtiyar, Partner and Leader, PriceWaterHouseCoopers India (PWC) observed that the
paucity of semiconductors and other supply chain hiccups are actually impeding higher growth.
Mukhtiyar feared that this crisis could prolong for nearly a year more.
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At the same time, Russia and Ukraine, neighboring countries that were known to play a key role
in chip supply chains globally, are currently in a state of war, further disrupting semiconductor
supply chains.

The stringent Chinese zero-Covid strategy has shut down important manufacturing hubs crucial
for global supply chains.

According to Srivastava, Maruti Suzuki did not have visibility on chip supplies for over a few
weeks, by the end of April.

Chips shortage results in fewer features

As many modern automobile features require chips, it is feared that Indian car manufacturers
may emulate their international peers in cutting some fancy features, in light of the chip shortage.

Indian car companies have been compelled to prune production and raise prices. This resulted in
orders getting delayed and raised the focus on car models needing fewer chips.

Akin to American automaker General Motors (GM) doing away with heated seats, a top feature
in colder climate countries, due to a semiconductor shortage, Indian companies may take a leaf
out of GM’s book by obviating features such as voice-assist, an in-built internet connection, and
the 360-degree camera.

Chips shortage amid thousands of pending orders

By the end of April 2022, amid chip scarcity, Indian car makers were staring at a pending orders
pile of up to 750,000. This was India’s largest-ever figure of pending car orders with Maruti
Suzuki alone counting nearly half of the orders.

Affected by the shortage and delays, all compressed natural gas (CNG) powered models from
the 40-year-old manufacturer have a waiting period stretching up to nearly six months of time,
especially the CNG Ertiga model.

Mahindra & Mahindra (M&M) and Tata Motors together were sitting on pending orders piles of
up to 375,000 even as car models such as Hyundai Creta, Tata Nexon, Punch, Thar, and Mahindra
XUV 700 also are high in demand. India’s top four car manufacturers, Maruti Suzuki, Hyundai,
M&M and Tata Motors, account for 80 percent of the passenger vehicle market.

Meanwhile, Carens and Slavia, new models from Kia and Skoda have a waiting period of up to
six months and three months respectively.

However, car makers believe that the ballooned order pile may not truly represent the actual
demand for vehicles as many car buyers are making multiple bookings.

Shashank Srivastava, Senior Executive Director for Marketing and Sales, Maruti Suzuki noted
that buyers are not only booking cars with multiple dealers for a single product but are also
booking vehicles from other brands, with the plan to go for the model which gets delivered first.
Srivastava highlighted that a single buyer going for multiple bookings has also raised the number
of cancellations across the industry.

Besides the phenomena of overbooking and cancellations, dealerships have also seen a dip in
enquiries due to lengthy waiting periods.
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Rural distress

Though demand emanated majorly from rural areas during Coronavirus first wave, the second
wave did not spare it. Gulati noted that unemployment and inflation, are two big worries and the
fortunes of rural demand depend on spending, even as the government is raising expenditure on
infrastructure with high budgets. This is important to uplift the sentiment of rural consumers.

Unfortunately, farmers’ income in India did not rise to expected levels. Though tractor sales were
doing fine for a good amount of time during the pandemic, they started to plummet in August
2021.

Barring a flat October, tractor sales declined by double digits for seven months, a development
which points at economic challenges. Tractor sales in India fell by 17 percent in August, 15
percent in September, were flat in October, 22.5 percent in November and 23 percent in
December.

Analysts point that the decade-low demand for two-wheelers and declining tractor sales are a
sign of difficult economic conditions for India. Significantly, utility vehicles surpassed cars in
attracting demand for the first time, including entry-level cars, sought after in rural areas.

The share of rural purchases in passenger car sales declined to 38 percent in Q4, FY22 from 41
percent in Q1 FY21, considering the strain on rural incomes and swelling inflation, which hurts
the ability to spend money on discretionary items.

The rural economy continues to be battered as the demand for minimum wages is rising
consistently at a time when the monetary allocation for Mahatma Gandhi National Rural
Employment Guarantee Act (MNREGA) has been slashed to INR 7.3 million in FY23 from INR
11.1 million, a year ago.

Meanwhile, the two-wheeler segment is expected to face some headwinds as On-Board

Diagnostics II (OBD II) is scheduled to be implemented from the beginning of the next fiscal
year, which will add to the cost of the vehicle.

CRISIL research highlighted that OBD II will hike two-wheelers prices up to 6 to 7 percent plus
whatever price increases companies will bring into effect, for various reasons such as rising
commodities prices, geopolitics, and others.

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Inflation due to skyrocketing fuel prices

More than a decade ago, India transitioned into the difficult era of unregulated fuel prices, from
the regulated fuel prices regime. Back then, there were no daily hikes in fuel prices. Unlike the
international practice, petrol and diesel prices were raised only when the government allowed
the oil marketing companies to do so.

Following deregulation, and later syncing of fuel prices to international crude prices in 2016,
Indians started witnessing daily price hikes of petrol and diesel, which was unheard of for them,
a few years ago.

As India’s federal government started raising fuel prices frequently, petrol and diesel prices
touched INR 100 for the first time in June 2021 and continue to hover over this unexpected mark.

Between 2014 – 15 and April – January 2021, the Government of India’s tax collection on petrol,
diesel, and natural gas shot up by nearly 300 percent.

Fuel prices in India has the effect of cascading inflation onto everything from freight prices, to
fruits and vegetable prices. Due to dearer petrol, diesel, and cooking gas prices, consumer food
prices went up by 100 percent between March 2021 and March 2022.

In the near future, fuel prices in India will continue to be vulnerable, as the Russia – Ukraine
war shows no sign of ending. The risk to inflation due to fuel prices will continue.

Dearer commodity prices

As raw materials comprise the lion’s share of the cost for car makers, ranging up to nearly 78
percent, any increase in their cost is directly proportional to the final price of the car.

Mainly due to the Russia – Ukraine war, prices of commodities like platinum, rhodium, copper,
aluminum, steel, and plastics have been high for two years.

The price of nickel rose by 219 percent, aluminum (136 percent), zinc (108 percent), copper (101
percent), HR Steel (91 percent), and CR steel (77 percent), between April 2020 and March 2022.

Even the precious metals used in automotive electronics have seen an upward price trend.

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Company Overview

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About the Company

Toyota Motor Corporation, Japanese parent company of the Toyota Group. It became the
largest automobile brand and manufacturer in the world for the first time in 2008, surpassing
General Motors. Many of its about 1,000 subsidiary companies and affiliates are involved in the
production of automobiles, automobile parts, and commercial and industrial vehicles.
Headquarters are in Toyota City, an industrial city east of Nagoya, Japan.

In 1933 Toyoda Kiichiro founded what later became the Toyota Motor Corporation as a division
of the Toyoda Automatic Loom Works, Ltd. (later Toyota Industries Corporation, now a
subsidiary), a Japanese manufacturer founded by his father, Toyoda Sakichi. Its first production
car, the Model AA sedan, was released in 1936. The following year the division was incorporated
as the Toyota Motor Company, Ltd., headed by Kiichiro. (The company’s name was changed to
Toyota, which has a more pleasing sound in Japanese.) Toyota subsequently established several
related companies, including Toyoda Machine Works, Ltd. (1941), and Toyota Auto Body, Ltd.
(1945). During World War II the company suspended production of passenger cars and
concentrated on trucks. Faced with wrecked facilities and a chaotic economy in the aftermath of
World War II, the company did not resume making passenger cars until 1947 with the
introduction of the Model SA.

By the 1950s Toyota’s automobile production factories were back in full operation, and to gain
competitiveness the company began a careful study of American automobile manufacturers,
owing to perceived U.S. technical and economic superiority. Toyota executives toured the
production facilities of corporations, including the Ford Motor Company, to observe the latest
automobile manufacturing technology and in turn implemented it in their own facilities, yielding
a nearly immediate increase in efficiency. In 1957 Toyota Motor Sales, U.S.A., Inc., was
established, and the following year the company released the Toyota sedan, its first model to be
marketed in the United States; it was poorly received because of its high price and lack of
horsepower. The Land Cruiser, a 4 × 4 utility vehicle released in 1958, was more successful.
In 1965 the Toyopet, completely redesigned for American drivers, was re-released as the Toyota
Corona, marking the company’s first major success in the United States. During the 1960s and
’70s the company expanded at a rapid rate and began exporting large numbers of automobiles to
foreign markets. Toyota acquired such companies as Hino Motors, Ltd. (1966), a manufacturer
of buses and large trucks; Nippondenso Company, Ltd., a maker of electrical auto components;
and Daihitsu Motor Company, Ltd. (1967). For several decades Toyota was Japan’s largest
automobile manufacturer. The company continued to thrive in the American market as well,
gaining a reputation for its low-cost, fuel-efficient, and reliable vehicles such as the Corolla,
which was released in the United States in 1968.

The company took its present name in 1982, when Toyota Motor Company was merged with
Toyota Motor Sales Company, Ltd. Two years later Toyota partnered with General Motors
Corporation in the creation of New United Motor Manufacturing, Inc., a dual-brand
manufacturing plant in California, where Toyota began U.S. production in 1986.

The company experienced significant growth well into the 21st century, with innovations such
as its luxury brand, Lexus (1989), and the first mass-produced hybrid-powered vehicle in the
world, the Prius (1997). In 1999 Toyota was listed on both the London Stock Exchange and the
New York Stock Exchange. The company continued to expand to new markets— specifically

25
targeting younger buyers with the launch of its Scion brand (2003) and unveiling the world’s
first luxury hybrid vehicle, the Lexus RX 400h (2005).

However, the company subsequently faced significant financial challenges: plummeting sales
stemming from the global financial crisis of 2008 as well as an international safety recall of more
than eight million vehicles in 2010, which temporarily halted the production and sales of several
of its top models. Beginning in 2014, millions of vehicles manufactured by Toyota and several
other car companies were recalled by regulators in the United States because of potentially
malfunctioning airbags produced by the Japanese automotive-parts supplier Takata. The recall
was “the largest and most complex safety recall in U.S. history,” according to the National
Highway Traffic Safety Administration.

Today Toyota has assembly plants and distributors in many countries. In addition to
automotive products, its subsidiaries manufacture rubber and cork materials, steel, synthetic
resins, automatic looms, and cotton and woolen goods. Others deal in real estate,
prefabricated housing units, and the import and export of raw materials.

26
History

Ohno Taiichi, (born 1912, Manchuria, China—died May 28, 1990, Toyota City, Japan),
Japanese production-control expert for the Toyota Motor Co. whose just-in-time system
(kanban) revolutionized manufacturing methods.

After graduating from Nagoya Technical High School (1932) Ohno joined Toyota and, about 20
years later, began implementing his cost-saving program. He served as assembly shop manager
in Toyota’s vehicle-making operations, then quickly climbed the corporate ladder as his
manufacturing expertise was recognized. His just-in-time method, in which parts are produced
only as they are needed and are delivered to the production line just prior to their use, helped
propel the once nearly bankrupt company into the position of third-largest automobile maker in
the world, behind General Motors and Ford.

Ohno became executive vice president in 1975 and retired in 1978 but retained the role of
consultant until 1982. He wrote the widely read books on manufacturing Toyota Production
System (1978), Workplace Management (1984), and Just-in-Time for Today and Tomorrow
(1988).

Weaving History
Towards the end of the nineteenth century, Sakichi Toyoda invented Japan's first power loom,
revolutionising the country's textile industry. January 1918 saw him create the Toyoda Spinning
and Weaving Company, and with the help of his son, Kiichiro Toyoda, Sakichi fulfilled his
lifelong dream of building an automatic loom in 1924. The establishment of Toyoda Automatic
Loom Works followed in 1926. Kiichiro was also an innovator, and visits he made to Europe
and the USA in the 1920s introduced him to the automotive industry. With the £100,000 that
Sakichi Toyoda received for selling the patent rights of his automatic loom, Kiichiro laid the
foundations of Toyota Motor Corporation, which was established in 1937. One of the greatest
legacies left by Kiichiro Toyoda, apart from TMC itself, is the Toyota Production System.
Kiichiro's "just- in-time" philosophy - producing only precise quantities of already ordered
items with the absolute minimum of waste - was a key factor in the system's development.
Progressively, the Toyota Production System began to be adopted

27
by the automotive industry across the world.
Rising from the ashes of industrial upheaval in post-war Japan, Toyota has become the largest
vehicle manufacturer in Japan with over 40% market share. Toyota began to make inroads into
foreign markets in the late 1950s. The first Crown models arrived in the USA in 1957, and by
1965, with models such as the Corolla, Toyota began to build its reputation and sales to rival
those of domestic producers. The first Toyota imported into Europe was via Denmark in 1963.
Toyota has continued to grow in Europe's sophisticated and complex market, and in 2000 the
company delivered its ten millionth car to a customer in Germany. In fact, growth is currently
one of the main words in Toyota's European vocabulary, and the company plans to reach annual
sales of 800,000 in Europe by 2005. Toyota is number one for customer satisfaction in the
majority of European countries and has built an excellent

reputation across Europe for reliability and customer service. This enviable reputation, along
with the support of a network of more than 25 distributors and 3,500 sales outlets, are important
factors in supporting Toyota's European sales growth in the coming years.
Toyota Automatic Loom

Toyota's Founder Mr. Sakichi

28
 1950 Toyota Corolla .

Early Toyota Models

Century

Corolla

29
 Crown Eight

Land Cruiser Model 55 Series

Toyopet Model SD

30
AA Sedan

AB Phaeton

31
Company Background

32
This document provides an overview of Toyota’s activities in the UK and around the world. For
further up-to-the-minute information please refer to the relevant sections of the Toyota GB media
web site, media.toyota.co.uk. Updated: March 2021
Toyota is one of the world’s best-known and most successful businesses, building cars and trucks
in 28 countries for sale in more than 170 markets around the globe. Worldwide production of
Toyota Motor Corporation group vehicles was 9.528 million (8.692 million for Toyota and Lexus
brand vehicles) in 2020.

Toyota global production in 2020 was 9.528 million vehicles. That’s the equivalent of one
car coming off the production line every three seconds, every minute, every hour, every day.

A key element in Toyota’s success is its commitment to designing, engineering and building cars
in the world regions where they will be sold. In Europe, this local manufacturing policy was
launched in 1989 with the founding of Toyota Motor Manufacturing UK (TMUK), just ahead of

33
the opening of Toyota’s first European production centres: a vehicle manufacturing facility in
Burnaston, Derbyshire, and an engine factory in Deeside, North Wales.
The level of UK production has made Toyota a key player in the nation’s manufacturing industry
and its export trade, with most of its UK output being shipped overseas. Burnaston is currently
responsible for European production of the Toyota Corolla and has the distinction of being the
first Toyota factory to have exported cars to the company’s “home” market in Japan. Deeside’s
engine production includes the latest generation units for use in the hybrid electric systems that
power both Corolla and the C-HR crossover.
Toyota has made regular investment in its UK operations to improve and update their production
capabilities and efficiency, helping ensure the plants remain competitive. To date, around £2.75
billion has been invested.
Toyota (GB) PLC is the company responsible for sales, marketing, after sales and customer
relations for Toyota and Lexus in the UK. The sales performance in past years has consolidated
the UK’s position as one of Toyota’s strongest European markets. It has regularly been listed in
the Sunday Times 100 Best Companies to Work For survey, rising to 15th in the rankings in 2020.

Toyota (GB) PLC headquarters near Epsom, Surrey

TOYOTA HISTORY
The Toyota success story is built on innovation, both in terms of its products and the processes
by which they are made. In 1918, Sakichi Toyoda revolutionised the weaving industry with his
invention of an automatic loom. The proceeds from the sale of his patent to a British firm – Platt
Brothers of Oldham – provided his son Kiichiro with the finances to make a start in the
developing car industry. The pioneering work practices that Sakichi had developed for his loom
business were easily adapted to the new automotive operation and in 1936 the first prototype
car, the Toyoda AA, was completed.

34
 Sakichi Toyoda prepared his car manufacturing business by visiting the USA and observing
Ford’s production lines. Back home he adapted that system to suit the smaller number of cars
to be built in his own factory.

The following year the Toyota Motor Corporation was formed with an investment of about
£300,000. The name change from Toyoda was decided by a competition; the name Toyota was
favoured, in part, because it comprises eight strokes in Japanese script, considered a lucky
number. Toyota had a tough time establishing itself, as the Japanese car market was dominated
by American imports from Ford and General Motors. World War II also threatened to destroy
the enterprise, but Toyota survived and in 1947 celebrated building its 100,000th vehicle.

In the 1950s Toyota laid the foundations for a new system of manufacturing vehicles. This was
developed into the Toyota Production System, an exceptionally efficient set of principles that
have been widely used and adapted within the global motor industry and beyond.
At the same time as it was honing its manufacturing processes, Toyota was also looking closely
at how to design and engineer more desirable and competitive products for international markets.
Sales companies were set up in Taiwan and Saudi Arabia before overseas production began,
albeit on a small scale, in Brazil in 1959.

In the early 1960s Toyota began exporting cars to Europe, first to Denmark. In 1965 it entered
the UK market, launching the Corona saloon at the Earls Court Motor Show. The following year
the original Corolla was launched, the debut of what was destined to become the world’s most
successful model range with global sales of more than 46 million (as of 2019).

35
 In 1965, the price tag on the Corona, Toyota’s first UK model, was £777. That’s the
equivalent of about £12,000 in today’s money.

The Toyota Corolla was first sold in the UK in 1966.

Toyota’s interests have not been confined to the automotive sector. Beyond its original textile
weaving business, the company has expanded into prefabricated housing, telecommunications,
forestry and boat-building.
Its European manufacturing activities continue to grow in Europe, including the opening of its
first factory in Russia in 2005, to build Camry and RAV4 models. Toyota also has a strong
presence in the world’s emerging markets, with plants in Brazil, India and China.

36
Toyota currently has 52 overseas manufacturing companies, in 28 countries and regions
worldwide. Its vehicles are sold in more than 170 countries and regions.
Moving into the 21st century it has transformed its role from being a vehicle manufacturer to
focus on mobility and how it can develop ways of giving people the freedom to move, whether
it is on the road, on the pavement, or simply across the room. Toyota has developed a series of
support robots for use in hospitals and the home that can help disabled people and those
recovering from injury to lead independent lives. At community level, it is working with partners
to develop integrated public transport systems for urban areas, and platforms to support efficient
and practical car sharing and cab services.
Speaking in December 2019, Toyota President Akio Toyoda said: “Toyota’s growth to date is
within the established business model of the automotive industry. In light of technological
innovations in “CASE,” (Connected, Autonomous/Automated, Shared, Electric) the very
concept of the automobile is on the verge of major change. Given this situation, we must
transform our business model into one that is in line with the CASE era.”

TOYOTA (GB) PLC

Toyota (GB) PLC is the national marketing and sales company for Toyota and Lexus vehicles in
the UK, responsible for all sales, marketing, after sales and customer relations issues nationwide.
The company’s headquarters – its EcoHQ – is at Great Burgh, a purpose-built, landmark building
near Epsom, Surrey, where all principal operations are co-ordinated by a staff of almost 300
people.
Vehicle imports are received at a facility at Portbury, near Bristol, and sales are handled by a
national network of around 180 Toyota and 50 Lexus retailers.

TMUK’s Burnaston plant in Derbyshire is home to European production of the Corolla

Hatchback and Touring Sports.

37
UK PRODUCT RANGE
TOYOTA CARS
Aygo Yaris
Corolla RAV4
Prius Highlander
Prius Plug-in Land Cruiser
C-HR Proace Verso
GR Yaris Mirai
GR Supra Camry

TOYOTA LIGHT COMMERCIAL VEHICLES (LCVs)

Hilux Proace
Land Cruiser Commercial Proace City

LEXUS CARS

UX 250h/UX 300e NX 300h

RX/RX L 450h LC 500/500hCoupe
LS 500h LC 500 Convertible
ES 300h RC F

Toyota UK Sales
YEAR TOYOTA TOYOTA LCV LEXUS TOTAL SALES
2003 117,531 6,638 9,527 133,696
2004 121,081 6,968 10,047 138,096
2005 122,534 5,454 10,548 138,536

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 2006 117,811 6,532 14,491 139,034
2007 118,432 9,891 15,113 143,436
2008 105,602 8.660 10,120 124,382
2009 102,595 5,825 7,268 115,688
2010 87,419 6,617 6,204 100,240
2011 73,582 8,402 8,269 90,253
2012 84,571 7,747 8,406 100,724
2013 88,653 7,623 9,014 105,290
2014 94,013 9,612 11,572 115,197
2015 99,062 10,125 13,271 122,458
2016 96,392 7,291 13,913 117,596
2017 101,692 9,538 12,671 123,901
2018 101,479 9,934 12,405 123,818
2019 104,565 9,116 15,712 129,393
2020 91,361 8,451 13,727 113,539

TOYOTA (GB) PLC TIMELINE

Toyota began importing vehicles into the UK in 1965 through an agreement with a small family
firm, Pride and Clark. In 1967 the company changed its name to Toyota (GB) Ltd and in 1978
became part of the Inchcape group, a public company with international interests in a wide range
of automotive businesses.

In 1998, Toyota’s agreement with Inchcape came to an end and Toyota Motor Corporation took
a 51 per cent majority shareholding in Toyota (GB) Ltd. In 1999, the company became a Public
Limited Company and in 2000 TMC took complete ownership of Toyota (GB) PLC. Since 2015,
Toyota (GB) PLC has been listed in the Sunday Times 100 Best Companies to Work For list,
achieving a ranking of 15th place in 2020 among mid-size UK businesses.

TOYOTA MOTOR MANUFACTURING UK LTD (TMUK)

The UK has the distinction of having been chosen by Toyota for the location of its first
European manufacturing centres. Production at both the TMUK vehicle manufacturing plant at
Burnaston, Derbyshire, and the engine factory at Deeside, in North Wales, began in 1992.
Toyota has continued to invest in its UK operations, spending more than £2.75 billion to date.

39
The first model to be built at Burnaston – and the first Toyota car to be built in Europe – was the
Carina E. This was followed in 1997 by the first generation Avensis and, from 1998, hatchback
versions of the Corolla. In 2007 Corolla production made way for five-door versions of Toyota’s
Auris hatchback. Burnaston was the exclusive global production centre for Avensis through to
the end of the model’s life-cycle in 2018. In 2011 further investment of £100 million was
announced for TMUK to be the exclusive manufacturing centre for Toyota’s second generation
Auris.

Burnaston is one of Toyota’s global eco-factories, placing a special focus on finding new ways
of using sustainable energy, eliminating waste and reducing the impact of operations on the local
environment.

Deeside has also enjoyed increased investment and development. Production capacity has been
regularly increased and in 2000 a new aluminium casting process was installed. Subsequently
investment was agreed to introduce machining and casting operations for Toyota’s 1.6-litre
Valvematic petrol engine. It also manufactured the 1.8-litre VVT-i petrol engine that was used
in the second generation Auris’s full hybrid powertrain. In 2016, Deeside further gained £6
million, including suport from the Welsh Government, to build a new generation of hybrid
engines, for use in the C-HR crossover model and the current generation Corolla (launched in
2019). Total investment in the plant stands at more than £700 million.

Currently Deeside employs more than 600 people, producing engines for the UK-built Corolla
models C-HR models built in Turkey and engines for assembly in South Africa.

Toyota’s first European-built hybrid

In July 2009 Toyota announced a full hybrid version of Auris would be built at Burnaston.
Production started in early 2010 ready for the start of sales in July. Manufactured alongside the

40
conventional petrol and diesel-powered hatchbacks, the car used 1.8-litre VVT-i engines
produced by TMUK at Deeside.

The model was Toyota’s first hybrid – and the first hybrid production car of any kind – to be
built in Europe. In 2012 it was joined by Yaris Hybrid, built by Toyota Motor Manufacturing
France at its factory in Valenciennes. Subsequently in 2013, Burnaston began production of the
second generation Auris Hybrid, including a new Touring Sports wagon version. Production
continued through to 2018 when preparations began for new TNGA manufacturing at the plant
(see below).

Toyota New Global Architecture production

In 2017, Toyota secured £240 million investment in its UK operations to manufacture vehicles
on the Toyota New Global Architecture (TNGA) platform. The funds were invested to improve
competitiveness and upgrade the Burnaston plant with new equipment, technologies and
systems. The sum included £20.3 million from the UK Government to support training, research
and development and further enhancements to the plant’s environmental performance.

In 2018, Toyota confirmed the next generation Corolla range – Hatchback and Touring Sports
models – would be built at Burnaston, using the TNGA platform. A ceremony to mark the official
start of production took place in January 2019.

The 1.8-litre hybrid petrol engines for the new models are supplied by TMUK Deeside.

Production in 2020
In 2020, TMUK at Burnaston produced 116,229 Corolla Hatchback and Touring Sports vehicles
(including 110,268 Hybrids), while Deeside delivered 245,118 fully assembled engines.

THE EUROPEAN PROFILE

Toyota’s high-profile presence in Europe, as a designer, manufacturer and retailer of vehicles, is
reflected in its strategic network of operations.

Toyota’s European head office is in Brussels, home to key activities for Toyota and Lexus across
the Continent, covering the European Union and beyond. These include overseeing all
manufacturing and engineering operations, marketing, sales, network development and brand
management, public relations, strategic and product planning, logistics, customer services, after-
sales and human resources/business administration issues.

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Yaris is Toyota’s best-selling model in Europe, accounting for one in four of all vehicle sales.
The new, fourth generation Yaris is built at Toyota’s production centre in Valenciennes, France.

Toyota’s investment in Europe since 1990 stands at more than €10 billion (more than £8.7
billion). Europe-wide it directly employs more than 25,000 people.

Toyota’s holding company for the region (which extends beyond the boundaries of the European
Union) is Toyota Motor Europe (TME), created in 2002. On 1 October 2005, TME merged with
its two subsidiary companies, Toyota Motor Marketing Europe (TMME), which oversees
marketing and sales activities, and Toyota Motor Engineering and Manufacturing Europe
(TMEM), which supports Toyota’s manufacturing operations and research and development
activities. Although the businesses were incorporated into TME, TMME and TMEM maintained
their individual functions and operating structures.

European manufacturing
Toyota began selling vehicles in Europe in 1963. It has since established itself as one of the
strongest brands in the European market and also developed a new role as a manufacturer, with
nine production centres in seven countries.

The first Toyota vehicles to be built in Europe were manufactured under licence in Portugal from
1971. Toyota launched its own European production in the UK in 1992 and has expanded its
operations with factories in France (2001), for Yaris, and Turkey (2002), where Corolla,
Auris, Verso and C-HR models have been built, and a transmissions plant in Poland, in 2002.

In 2005 an engine plant in Jelcz-Laskowice in Poland came on stream, building a new generation
of Toyota D-4D common rail diesel engines. In 2020, it began production of a new
1.5-litre TNGA engine, featured in a new generation of Toyota hybrid powertrains.

42
At the same time, production started at Toyota Peugeot Citroën Automobile (TPCA) in the
Czech Republic, a joint venture between Toyota and the French automotive group Groupe PSA.
This plant builds the Aygo, as well as city car models for the French partner manufacturers. In
January 2021, Toyota assumed full ownership of the Kolin car plant and announced hybrid
electric vehicle manufacturing would be introduced there, with additional production of Yaris
models.

In December 2007, production of Camry models started at Toyota’s first factory in Russia, in St
Petersburg, and in 2012 production of Yaris Hybrid began at Toyota’s factory in Valenciennes,
France. In 2016 Toyota made further investments in its St Petersburg plant to accommodate
RAV4 production.

In 2018, Toyota Motor Manufacturing Poland’s Wałbrzych plant launched production of hybrid
transaxles for the European-built Corolla and C-HR models. It became Toyota’s first factory
outside Asia – and only the second outside Japan – to manufacture these hybrid components. In
2021, Toyota Motor Manufacturing Poland began making hybrid drives for the new, fourth
generation Toyota Yaris.

The expansion of Toyota’s European manufacturing base is in line with the company’s
philosophy of building cars local to the markets where they will be sold, ensuring that the product
meets regional tastes, driving styles and environmental considerations, such as road quality and
traffic levels.

European sales
In 2020, Toyota Motor Europe sold 993,113 vehicles (922,299 Toyota and 70,814 Lexus
models), which gave it a record six per cent share of the total new car market (up 0.7 percentage
points). The figures included more than 529,000 Toyota and Lexus hybrid electric vehicles,
representing 53 per cent of the total (65 per cent in Western Europe). With more than 20 different
hybrids, Toyota and Lexus continue to offer the widest range in the industry.

European design centre

Toyota established its European Design and Development Centre – ED2 – in the South of France
in 2000. It plays a crucial role in helping the company create cars that suit the European market
in terms of style and performance.

ED2 enjoyed early success with the Toyota Yaris, the first Toyota to be designed in Europe, which
was named both European and Japanese Car of the Year. Since then, Auris, Avensis, Verso, Yaris

43
and C-HR have emerged from the studio, models which have been and are central to Toyota’s
European market strategy.
Toyota also has a research and development centre in Brussels, established in 2003, with
facilities that include a vehicle test track.
A HISTORY OF INNOVATION
Much of Toyota’s worldwide success has been achieved through its forward-looking approach
and its determination to explore new concepts and technologies. Innovation has been sought not
just for the sake of science, but to deliver increased safety and performance and environmental
benefits in Toyota’s mainstream product range.

Toyota invests more than £2 billion a year in technology and development of new products, more
than any other manufacturer. Furthermore, around a quarter of the research and development
budget is dedicated to alternative fuel sources.

Its long-term goal is to manufacture the ultimate eco-car – one that has zero harmful impact on
the environment during its complete lifecycle. It continues to make significant progress towards
achieving this through the development of hybrid technology that makes use of different fuels
and energy sources. These include the petrol-electric system used in Prius, the plug-in electric
hybrid and the hydrogen fuel cell system featured in the Mirai, Toyota’s first hydrogen-powered
fuel cell car.
Putting more than 5.5 million electrified vehicles on the road every year by 2030

As one of the world’s leading car manufacturers, Toyota recognises its responsibility to help
protect the environment. That means creating vehicles which have as little impact as possible on
the natural world around us. It is not just a matter of how they perform when they are driven on
the road; Toyota believes it just as important to find cleaner, sustainable ways of making vehicles
and disposing of them when they reach the end of their useful life.

The company has spent decades researching how it can make vehicles that are kinder to the
environment, producing technologies such as hybrid that have already proved their value in
reducing greenhouse gas emissions and helping the move towards a low carbon society. Toyota
is still on that journey and wants to reduce its vehicle CO2 emissions by 90 per cent by 2050,
compared to the 2010 levels.

It will reach that ambition with an intensive programme of making electrified cars, putting more
than 5.5 million on the road every year, by 2030.

It is not just about reducing CO2, however, Toyota shares the concerns of governments and
consumers around the world about the importance of air quality and continues to invest in finding
ways of reducing vehicle emissions that directly impact on people’s health, such as nitrogen
oxides (NOx) and particulates (PM) within its 360-degree view of design and technology
innovation.

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The right car, in the right place, at the right time
Around the world, people use different types of vehicles to suit their lifestyle and their local
environment. Some may only need a small car for short urban journeys, while others require a
larger and more powerful vehicle to make regular long-distance trips. Concern about the
environment and cutting carbon emissions cuts across these differences, which is why Toyota
believes there is no single solution when it comes to creating the ultimate eco-car. With its hybrid
system it has produced a low carbon technology that can be used in multiple ways to address
these different demands.

Ever since vehicles began using the internal combustion engine in the late 19th century, they have
largely relied on fossil fuels that produce CO2 and contribute to global warming. While
conventional engines will continue to play an important role in the short to medium term, Toyota
is researching and developing alternatives such as biofuels from organic sources, electricity and,
more recently, hydrogen. With this multi-path approach, it aims to secure better environmental
performance by providing the right car, in the right place, at the right time.

Mapping a route to sustainable mobility

With the launch of the Mirai, the world’s first mass-produced hydrogen fuel cell electric saloon,
Toyota’s range of advanced, alternative power vehicles continues to grow, taking our
technology out of the research laboratory and on to the road. Its line-up also includes an
everincreasing number of hybrid electric and plug-in hybrid electric cars.
Toyota has also developed prototype battery electric vehicles, such as the i-ROAD, designed for
urban mobility. Together these create a technical roadmap towards the ultimate eco-car – one
which aims for zero impact on the environment.

Toyota’s strategy to reach this goal is to accelerate development and delivery of electrified
vehicles – hybrid electric, plug-in hybrid electric, fuel cell electric and battery electric vehicles.
This will help ensure widespread take-up of cleaner cars by motorists, to the point where Toyota
expects to be putting 5.5 million electrified vehicles on the world’s roads every year by 2030.

To achieve this, it can call on its industry-leading experience of having already sold more than
15 million electrified vehicles worldwide since it introduced hybrid electric technology to the
car market with the original Toyota Prius in 1997. With constant improvement of its hybrid
know-how and by monitoring the way people choose and use their cars, it can deliver technical
innovation in ever-better vehicles that combine more environmentally friendly performance with
strong customer appeal.
Toyota’s multi-award-winning Hybrid Synergy Drive hybrid power system is the core
technology shared by all the different electrified powertrains. The fact it is modular in design
means that it can easily be adapted for use in different types of vehicle. In plug-in hybrids it is
largely unchanged, but uses a more powerful battery that can be recharged from an external
power supply. In electric vehicles its format is simpler with no petrol engine and a more powerful
electric motor. In fuel cell hybrids the petrol engine is replaced by the fuel cell stack, to generate
electricity from hydrogen fuel with no harmful tailpipe emissions.

European hybrid vehicle production

45
Toyota has long recognised the value of manufacturing vehicles local to where are they sold.
This is true, too, of its hybrid models, with production plants operating in a number of countries
outside Japan.

Its hybrid electric vehicle production facilities at Valenciennes in France and Burnaston and
Deeside in the UK are designated sustainable plants which set global standards for
environmentally efficient manufacturing. This includes reducing demand on natural resources,
recycling and eliminating waste, drawing energy from sustainable and renewable sources and
working in harmony with the local environment and communities.

By making hybrids locally, Toyota further reduces their environmental impact by removing the
need for long-distance shipping around the world. This helps reduce the vehicles’ carbon
footprint and supports the company’s commitment to reducing emissions at every stage of a car’s
lifecycle.

In 2009 Toyota announced a hybrid electric version of its Auris hatchback would be built at
TMUK’s Burnaston factory, its first hybrid model to be made in Europe. In 2012 the strategy
took another step forward with the introduction of Yaris Hybrid, the first full hybrid electric
supermini, built at the Valenciennes factory in France. The Toyota C-HR crossover followed in
2016, manufactured in Turkey. Meanwhile TMUK’s Deeside engine plant produces hybrid petrol
engines for both Corolla and C-HR, with hybrid transaxles manufactured for the same models at
Toyota Motor Manufacturing Poland’s Wałbrzych facility.

Transaxles fitted to the Corolla and C-HR hybrids

Mirai and Toyota’s hydrogen fuel cell technology

Toyota’s development of hydrogen fuel cell technology since the mid-1990s led to the successful
market launch of its first fuel cell electric car, Mirai.

46
Toyota Mirai

The name Mirai means “future” in Japanese, but to make the Toyota Fuel Cell System technology
successful, Toyota acknowledges that it has to be made accessible and attractive to people today.
Although Mirai has an extremely advanced powertrain and uses a new type of fuel, it is a regular
mid-size, four-door saloon that is every bit as practical, safe and easy to drive as a conventionally
powered family car. It will go as far as a similar size petrol car on a full tank of hydrogen and
refuelling from empty takes around five minutes. The rewards are a quiet, smooth drive, strong
performance and no tailpipe emissions other than water vapour.

Mirai was launched in Japan at the end of 2014 ahead of its introduction in limited numbers in
North America and selected European markets (including the UK) during 2015. Its initial
availability is linked to areas where a hydrogen fuel infrastructure is in place or under
development.

In late 2020, a second-generation Mirai will be launched (arriving in the UK in spring 2021),
marking further development of hydrogen’s potential as a sustainable fuel for zero emission
mobility.

How fuel cell technology works

The Toyota Fuel Cell System used in Mirai produces electricity from a reaction between
hydrogen and oxygen. You fill up with hydrogen fuel, in the same way as you buy petrol or
diesel at a filling station. The fuel is contained in highpressure tanks and fed into a fuel cell stack,
where the hydrogen and the oxygen found naturally in the air react with each other and generate
electricity. As in a petrol-electric hybrid, the electricity created is stored in a battery and is
boosted in voltage to drive the electric motor. Further energy is captured every time the car
brakes or slows down, which contributes to even better fuel economy.

Hydrogen is not a new source of energy. It has been widely used for more than a century, but it
has only recently been recognised as a viable power source for vehicles that can eliminate carbon
emissions and reduce dependence on the world’s shrinking supplies of oil-based fuels. Hydrogen
is all around us. In fact it is the most abundant element in the universe. We can obtain it from
plentiful natural resources, including by means of renewable energy such as wind and solar
power.

47
As well as creating no CO2 emissions when used, hydrogen fuel also has a higher energy density
than electric batteries and is easy to transport and store. These qualities also make hydrogen a
potential solution for supporting energy generation from renewable sources by compensating for
uneven energy distribution and fluctuations in supply.

Battery Electric Vehicles

Toyota may be famous for our hybrid technology, but we know that petrol-electric hybrids are
not the only solution it can use to help deliver better, more energy-efficient transport. It has also
been developing battery electric vehicle technology as part of its future mobility roadmap.

It believes BEVs are a great way to improve mobility and reduce pollution in urban areas. To
maximise their potential, large numbers of people need to be encouraged to adopt them, so
Toyota is launching more than 10 BEV models by the early 2020s. Its first target market will be
China, after which it expects to roll them out to customers in Japan, India, the United States and
Europe.
Toyota BEVs will make a significant contribution to the company’s aim to sell more than 5.5
million electrified vehicles each year by around 2030.

Where Toyota’s hybrid electric, plug-in hybrid electric and fuel cell electric vehicles are ideal
for longer journeys, BEVs are best suited to short, low-speed journeys in towns and cities.
Compact, zero-emissions vehicles powered by batteries that are quick to recharge can improve
air quality and ease traffic congestion. They are quiet, easy to drive and have low running costs,
making them perfect for commuting journeys or as delivery vehicles.

TOYOTA ENVIRONMENTAL CHALLENGE 2050

Toyota cares about the environment, it is central to what the business is and what it does. It is
committed to continually reducing its impact on the world and has consistently pioneered
technologies, products and ways of working that are kinder to the environment and benefit
society as a whole.
In 2015 Toyota presented its Environmental Challenge 2050, a series of six targets that cover
every aspect of its business, its exploration of new products and technologies and its role as an
enable for individuals and communities to learn about and improve the natural world around
them.

Challenge 1: New Vehicle Zero CO2 emissions

Our New Vehicle Zero CO2 challenge is to reduce the CO2 emissions from our vehicles by 90
per cent by 2050, compared to the levels we had in 2010. To do this we will make our
conventionally powered models more fuel-efficient and we will promote the development of
next-generation vehicles with low or zero carbon emissions, including hybrid, plugin hybrid,

48
electric and fuel cell vehicles. Cars that use cleaner, alternative fuels can only have an impact
when they are taken up by the public in large numbers, so we will work to make them widely
available and encourage development of the infrastructure – filling stations and charging points,
for example – needed to support their use.

Challenge 2: Life Cycle Zero CO2 emissions

With our lifecycle Zero CO2 Emissions Challenge we want to do more than eliminate the C02
emissions produced when we make vehicles and when our customers drive them. We want to
remove carbon emissions from the manufacturing of the materials and parts we use, from our
logistics activities and from the disposal and recycling methods employed when vehicles reach
the end of their lifecycle. To do this we will work on more environmentally friendly designs that
use lower carbon raw materials and fewer parts. We will make greater use of bio-materials from
renewable sources and make our vehicles easier to dismantle and recycle.

Challenge 3: Plant zero CO2 emissions

Vehicles don’t only produce CO2 emissions when they are driven, they are generated by the
production processes in our factories as well. To help restrain climate change, we have a strategy
for achieving zero CO2 emissions in our manufacturing plants, focusing on improving the
technologies we use and switching to alternative power sources. We will rationalise our
manufacturing processes, making them shorter so that less CO2 is produced. We will make our
facilities more energy-efficient and adopt renewable energy sources, such as solar and wind, and
low-carbon power such as hydrogen energy.

Challenge 4: Minimising and optimising water usage

The world’s water needs are growing fast, so we need to conserve as much as we can by reducing
the amount we use to make our products, and recycling as much as we can. We are beginning to
collect rainwater at our manufacturing sites to reduce the amount our factories have to take from
groundwater and their piped supply. We have developed purification processes so that the water
we do use can be used again, or returned safety into the local supply network. As the water
environment differs greatly across the world regions where we operate, we will take care to
introduce measures that are sensitive to local needs.

Challenge 5: Establishing a recycling-based society and systems

Increasing populations, economic growth and the desire for a more convenient lifestyle all put
growing pressure on natural resources and create more waste. We want to help build an ideal
resource/recycling-based society, working in four key areas: greater use of eco-friendly
materials; the use of longer-lasting parts; developing more effective and thorough recycling
technologies; and using more of the materials recovered when a vehicle is disposed of to make
new ones.

Challenge 6: Establishing a future society in harmony with nature

To preserve and enhance our co-existence with nature, we need to conserve our forests and other
rich eco-systems. We operate projects – large and small - around the world to support our aim of
49
“enriching lives of communities,” organising reforestation and tree planting, green urban
schemes and other environmental initiatives, within our sites and in the wider world. We will
use the insights we have gained to play an active part in improving environmental education and
raising awareness to help build a society where people live in harmony with the natural world.

TOYOTA RESEARCH INSTITUTE

Founded in 2016, the Toyota Research Institute (TRI) is in the forefront of Toyota’s development
of new technologies and systems to improve the quality of human life, including artificial
intelligence (AI), automated driving and robotics. It is building a new approach to mobility and
pioneering the technologies that will drive its future.

TRI is applying AI to help Toyota produce cars in the future that are safer, more accessible and
more environmentally efficient. It is expanding AI technology into new applications by
strengthening and refining the interaction between human and machine.

In the field of robotics, it is developing robots with enhanced perception, movement,

manipulation and reasoning. It is looking for ways to help people enjoy greater independence in
the home, offering freedom of movement and help with performing simple tasks.

It is also using AI as a basic technology to help expand the boundaries of new materials research
and to develop tools and processes to accelerate their design and development.
Through innovations in AI, TRI’s goal is to one day develop a vehicle that is incapable of causing
a crash and to create vehicles and robots that could help people enjoy new levels of independence
and mobility.

TRI has centres in California, Michigan and Massachusetts where it works together with leading
academic institutions in research partnerships to drive advances in technology.

Automated driving
Toyota views the relationship between a drive and cars as that of teammates working together to
ensure a safe, comfortable and fulfilling journey. TRI is applying this philosophy to automated
driving by pursuing technology that makes vehicles safer and driving both more fun and
convenient.

The three components of automated driving are perception, prediction and planning and TRI is
making significant advances in each area.

Two different automated driving modes are being developed in parallel – Guardian and
Chauffeur – which gives drivers a choice. Guardian mode uses technology to constantly monitor
the human’s driving task, intervening only when necessary to protect the vehicle from a potential
crash. In Chauffeur mode, the technology takes all the responsibility for driving and the vehicle’s
occupants are strictly passengers. The underlying technology for both modes is the same, and it
further forges the collaboration between human and machine.

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MOTORSPORT
Toyota has a rich motorsport heritage spanning almost 60 years and taking in all the world’s
major competitions, from Formula 1 and Le Mans to the World Rally Championship and the
Dakar cross-country race.

In 2014 it claimed the FIA World Endurance Championship manufacturers’ title with its TS040
Hybrid race car. Two of its driving squad, Anthony Davidson and Sebastien Buemi, jointly won
the drivers’ championship.

In 2015 its international motorsport activities were united under the banner of Toyota Gazoo
Racing, the organisation which today runs its top-level participation in the World Endurance
Championship, the World Rally Championship and the annual Dakar rally. In 2018 it claimed
the sport’s highest prize, winning the Le Mans 24 Hours for the first time, in a season that also
saw it lift both the drivers’ and manufacturers’ world titles. Further Le Mans wins followed in
2019 and 2020. In 2020 it also claimed the drivers’ and manufacturers’ championships – the final
season before significant changes to the competition. From 2021, Toyota Gazoo Racing will
field its new GR010 Hypercar in the WEC.

Nasser al-Attiyah and Matthieu Baumel gave Toyota its first overall Dakar victory in the Toyota
Gazoo Racing South Africa Hilux in 2018 and followed this success up with second place in the
2020 and 2021 events.

Toyota also supports teams in NASCAR racing in North America and the Japanese Super GT
series, as well as grass roots competition around the world and its own programme for
developing young drivers.

Toyota returned to the World Rally Championship in 2017 with the Yaris WRC, entered by
Toyota Gazoo Racing World Rally Team under the direction of four-time champion Tommi
Mäkinen. Following series of event victories and podium finishes, the team successfully won
the manufacturers’ championship for Toyota in 2018 and the drivers’ championships with Ott
Tänak in 2019 and Sébastien Ogier in 2020. Following the 2020 season, former driver JariMatti
Latvala took on the role of team principal from Tommi Mäkinen.

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TOYOTA MILESTONES

1918 Sakichi Toyoda invents the world’s first automatic loom. The Toyota Spinning and
Weaving company is founded.
1929 Sakichi Toyoda sells the patent for his loom to Platt Brothers of Oldham for
£100,000. He hands over the proceeds to his son, Kiichiro, to develop automotive
technology, establishing an automobile department within the loom works.
1936 Production of the first prototype car, the Toyota AA, begins.
1937 The Toyota Motor Corporation is founded with an initial investment of 12 million
Yen (approx. £300,000).
1947 Toyota builds its 100,000th vehicle
1950 Toyota begins vehicle exports from Japan, initially to South East Asia and Latin
onwards America.
1957 Toyota launches its first completely Japanese designed and built passenger car, the
Crown.
1962 European exports begin, with Toyotas shipped to Denmark. Total production reaches
the one million mark.
1965 Toyota enters the UK market with the Corona. Introduced at the Earls Court Motor
Show, it costs £1,000. The exclusive import rights are held by a family firm, Pride
and Clark.
1966 Toyota introduces the Corolla. It becomes the world’s best-selling model range, with
nine successive Corolla generations achieving more than 29 million sales around the
globe.

52
1967 Pride and Clark changes its name to Toyota (GB) Ltd.
1972 Toyota builds its 10 millionth vehicle
1972 Ove Andersson takes Toyota into world rally competition.
1973 Toyota establishes an overseas design centre, CALTY, at Newport Beach,
California.
1975 Toyota achieves its first World Rally Championship victory. Andersson Motorsport
is renamed Toyota Team Europe (TTE).
1984 Toyota enters an arrangement with General Motors to build cars in the USA.
NUMMI (New United Motor Manufacturing Inc.) is founded.
1986 Toyota’s domestic vehicle production passes 50 million.
1989 Toyota announces its first European engine and vehicle production centres, at
Deeside and Burnaston in the UK.
Toyota Motor Marketing and Engineering Europe (TMME) is established.
1990 Carlos Sainz wins the World Rally Championship, driving a Toyota Celica.
1992 The Toyota Earth Charter is published, expressing the company’s commitment to
environmental issues.
1993 TTE is bought by Toyota Motor Corporation and renamed Toyota Motorsport GmbH.

1993-94 Toyota becomes the dominant manufacturer in the World Rally Championship with
Celica achieving a clean sweep in both seasons.
1997 TMC announces it will open a factory in Valenciennes, northern France, to build the
new Yaris model.
Toyota launches the world’s first hybrid power production car, the Prius.
1999 Toyota ends its World Rally Championship campaign, having achieved three
manufacturers’ championships, four drivers’ championships and 43 individual rally
victories. The company now focuses its efforts on Formula 1.

2000 Yaris becomes the first Toyota model to be honoured as European Car of the Year.
Domestic production passes 100 million. TMC
takes full ownership of Toyota (GB) PLC.
Toyota opens its ED2 design centre in the South of France.
2001 Toyota (GB) PLC (TGB) moves from Redhill to new, purpose-built headquarters
near Epsom, Surrey.
Toyota annual UK sales pass 100,000 for the first time.
Burnaston is awarded the Sir George Earle Trophy for health and safety
performance.

53
2002 Panasonic Toyota Racing makes its debut in Formula 1.
The Toyota FCHV becomes the world’s first pollution-free fuel cell vehicle to be
available through commercial leasing.

Toyota and Nissan agree to co-operate on hybrid power technology.

2003 Burnaston begins production of the new Toyota Avensis.

Toyota launches the second generation Prius, featuring a more advanced Hybrid
Synergy Drive powertrain. It is the world’s cleanest family car.
TGB and 11 other Toyota national sales and marketing companies in Europe become
subsidiaries or affiliated companies of TMC.
2004 TMC announces £50 million investment in Burnaston to increase production to
285,000 units a year.
The second generation Toyota Prius is named the 2005 European Car of the Year.
Its Hybrid Synergy Drive powertrain is awarded the 2004 International Engine of
the Year title.
In October, Toyota manufactures its 2.5 millionth vehicle in Europe

2005 The UK is announced as the site for Toyota’s European Global Production Training
Centre.
TMUK receives the Queen’s Award for International Trade. Record production
levels are achieved at Burnaston; the UK plant also builds its two millionth vehicle.
Production of the Aygo city car starts, the smallest model to be launched by Toyota
in Europe. Aygo is built in a joint project with PSA Peugeot Citroën at a new
production centre in Kolin, in the Czech Republic.
New-generation 2.2-litre D-4D diesel engines are launched, built at Toyota’s new
facility in Poland. Avensis and Verso are the first models to adopt them.
New Toyota Hilux is launched in October, the sixth generation of Toyota’s legendary
go-anywhere pick-up.
December brings an all-new Yaris, the second generation of Toyota’s top-selling
European model.
It achieves a top five-star Euro NCAP rating for occupant crash protection.

54
2006 RAV4, Europe’s most popular SUV, enters a new era with an all-new model. More
flexible interior accommodation and advanced drive technology raise the
benchmark in the compact SUV segment.
New 148 and 175bhp 2.2-litre diesel engines are introduced in the Avensis range,
the latter equipped with Toyota’s D-CAT catalyst system to achieve substantial
reductions in exhaust emissions.
The Hilux pick-up benefits from a revised 2.5-litre D-4D engine, increasing power
and torque. A 169bhp 3.0-litre D-4D unit is announced for the range, available from
early 2007. Cleaner and more powerful (94 and 118bhp) 2.5-litre D-4D engines are
also introduced in the Hiace range of vans.
Toyota unveils the Auris, an all-new family hatchback model to be built in the UK
and Turkey.
2007 Production of Auris begins at TMUK’s Burnaston factory, with investment in the
Deeside engine plant to build new ZR 1.6-litre petrol engines for the model. UK
sales started on 1 February.
Deeside celebrates building its three millionth engine since production began
in 1992. On 2 May a Toyota Hilux becomes the first car to reach the Magnetic
North Pole, driven by Jeremy Clarkson and James May of the BBC’s Top
Gear programme.
A new 3.0-litre D-4D diesel engine is introduced into the Dyna, completing Toyota’s
upgrading of its complete LCV powertrain range to meet Euro IV emissions
standards.
The Yaris range is extended to include a new flagship SR 1.8 model, powered
exclusively by a new
1.8-litre Dual VVT-i petrol engine.
2008 The Land Cruiser V8 is scheduled for UK launch in February, replacing the Land
Cruiser Amazon at the top of Toyota’s 4x4 range.
Toyota unveils a production-ready version of the iQ at the Geneva motor show, a
new compact urban car due to go on sale early in 2009. Also revealed is the Urban
Cruiser, a new compact SUV, due for European launch in 2009.
At the Paris motor show in September Toyota launches Toyota Optimal Drive, a
combination of new powertrain design and engineering technologies designed to
improve fuel efficiency and emissions. Auris is first to benefit from the advance,
with the introduction of a new 1.33-litre Dual VVT-i engine with Stop & Start.

55
2009 The third-generation, British built Avensis goes on sale in January, together with the
all-new iQ. Urban Cruiser, a new breed of compact hatchback with all-wheel drive
capability, is launched in May.
Toyota Optimal Drive technology is rolled out across the model range with new
Valvematic petrol engines, revised D-4D and D-CAT diesel engines and six-speed
manual and automatic transmissions.
In February Toyota Hilux models are driven to the South Pole, supporting an
overland challenge. Also in February both new Avensis and iQ achieve the top
fivestar all-round safety rating in new, more stringent Euro NCAP crash testing. The
new generation Prius and hybrid power Lexus RX 450h are presented at the Geneva
motor show in March, prior to going on sale in the summer.
In April sales start of the new generation Toyota Verso compact MPV.
Toyota opens a new chapter in the development of its European manufacturing
operations with the announcement a hybrid version of Auris will be built at
Burnaston in the UK. The model is scheduled to go on sale during 2010.
A new generation Land Cruiser is unveiled at the Frankfurt motor show and goes
on sale in December. Toyota also announces a worldwide trial of a new Prius Plugin
model, with extended electric-only running capabilities.
At the Tokyo motor show Toyota presents a new FT-86 rear-wheel drive sports car
concept.
In November Toyota announces the end of its Formula 1 programme.
2010 Toyota unveils the FT-86 Sport Concept at the Detroit motor show, the company’s
vision for a new front engine/rear-wheel drive compact sports car in the spirit of the
AE86 Corolla of the 1980s.
The production-ready Auris hybrid debuts at Geneva. Toyota announces the new
model will deliver from 89g/km C02 emissions and 74.3mpg fuel economy.
In July the British-built Auris HSD goes on sale.
At the Frankfurt motor show Toyota reveals a new B-segment mini-MPV, Verso-S,
ahead of sales starting in early 2011.
In September global sales of Prius pass two million.
Toyota reveals its RAV4 EV concept, developed in partnership with Tesla, at the Los
Angeles auto show in November.

56
2011 Prius v is unveiled at the Detroit motor show, with its European market counterpart,
Prius+ presented at the Geneva motor show, marking the further evolution of the
Prius full hybrid model range.
Yaris HSD concept, Toyota’s proposition for a full hybrid supermini, makes its
debut at the Geneva motor show. Its prototype EV all-electric car is also shown in
Europe for the first time.
Verso-S, a B-segment MPV, is launched in Europe and the UK on 1 March.
In March, Toyota celebrates building its three millionth hybrid vehicle.
An earthquake and tsunami devastate north eastern Japan on 11 March. The disaster
has a major impact on Toyota’s supply chain, leading to reduced production levels
at its domestic and overseas factories.
Toyota’s Burnaston factory strengthens its environmental performance with the
switch-on in July of one of British industry’s largest solar energy farms.
In November, the all-new third generation Yaris is launched. Toyota announces
Burnaston will become the production centre for its next-generation compact
hatchback model.
Toyota presents the FCV-R, a hydrogen-powered family car concept at the Tokyo
motor show.
2012 The Toyota FT-Bh concept is displayed at the Geneva motor show, a high-efficiency
hybrid created using affordable and available technologies and manufacturing
methods.
Toyota announces a return to international sports car racing with the Toyota TS030
Hybrid, competing in the World Endurance Championship and the Le Mans 24
Hours.
Toyota undertakes a complete revision of its compact/family car models, unveiling
the second generation Auris, new Auris Touring Sports estate car and a substantially
upgraded Verso compact MPV at the Paris motor show.

New model introductions in 2012 include the seven-seat Prius+ MPV, Prius
Plug-in hybrid, the Yaris Hybrid, the GT86 sports coupe, a comprehensively
revised Verso MPV and the fourth generation Lexus GS.
2013 At the Geneva motor show in March Toyota revealed its FT-86 Open concept car, a
study for a possible convertible version of its GT86 coupe. In the spring Toyota
introduced an all-new, fourth generation RAV4 compact SUV. The British-built
Auris Touring Sports, the first estate car version of Auris, joined the growing model
range in July, as did the new Proace light duty van.

57
2014 Toyota opened the year by stealing the show at Detroit with its FT-1 sports coupe
concept. Three months later it took the wraps off the new, second generation Aygo
at the Geneva motor show, ahead of the car going on sale in the summer. March
also saw the arrival of a new 1.6 D-4D engine, sourced from the BMW Group but
extensively re-engineered by Toyota. The new unit made its debut in the 2014 Verso.
The i-Road electric personal mobility vehicle was adopted as part of an integrated
public transport trial project in Grenoble, France.
In November Toyota reveals the production-ready version of its first hydrogen fuel
cell car, Mirai, and confirms public sales will be launched in Japan North America
and Europe in 2015.
In 2014 Toyota wins the FIA World Endurance Championship manufacturers’ title,
with its drivers Anthony Davidson and Sébastien Buemi jointly taking the drivers’
title.
2015 In January Toyota announced its intention to return to the World Rally
Championship after 17 years away from the sport’s top level, competing with a new
Yaris WRC competition car. Safety was the focus in February with the
announcement of Toyota Safety Sense, a package of different active safety systems
that will be rolled out across the model range, starting with the new Auris and
Avensis.
In March Toyota became a partner in the mobility category for The Olympic
Programme, a sponsorship agreement that will run until 2024. Later in the year a
similar worldwide agreement was reached with the International Paralympic
Committee.
In the same month Toyota updated progress on its commitment to making everbetter
cars, revealing the Toyota New Global Architecture as the basis for new powertrain
components and vehicle platforms.
In June Toyota’s Burnaston factory achieved the unprecedented feat of
simultaneously starting production of the new Auris and Avensis models. This
provided a positive lead-up to celebrations for Toyota’s 50th anniversary in the UK
in July.
The summer brought the introduction of a new 2.8-litre turbodiesel engine in a
revised Land Cruiser line-up, prior to the debuts of the new Prius and RAV4 at the
Frankfurt motor show in September.
The first UK customers for the Toyota Mirai, the world’s first production hydrogen
fuel cell saloon, took delivery of their vehicles in October. At the same time, Toyota
began the first road testing of its automated driving technology in Japan. The
company further advanced its future technology programme with investment in a
new business, Toyota Research Inc (TRI), focusing on artificial intelligence and
robotics.
In October Toyota revealed ambitious new environmental targets in its
Environmental Challenge 2050.
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2016 In February Toyota announces that new hybrid petrol engines will be built at TMUK
Deeside for use in the new C-HR crossover. The production-ready C-HR makes its
first appearance at the Geneva motor show in March, together the new Hilux pickup
and Proace Verso large MPV.
Across the Atlantic Prius Plug-in has its world debut in New York.
Further expansion of Toyota’s European manufacturing sees investment in the St
Petersburg factory in Russia to start production of RAV4, in addition to the Camry
saloon, while €150 million is committed to hybrid transaxle and petrol engine
production in Poland.
The second generation Proace medium duty van is shown for the first time, at the
Commercial Vehicle Show in the UK.
September brings the 50th anniversary of the Toyota Corolla, the world’s best-selling
model, still in production around the world.
Toyota and Suzuki announce plans to work in partnership on environmental, safety
and IT research projects.
UK Toyota production passes four million units in November.
Toyota ends the year with the announcement of new generation engines and
transmissions built according to Toyota New Global Architecture (TNGA)
principles.
2017 In January Toyota Gazoo Racing World Rally Team begins its first World Rally
Championship season with the Yaris WRC on the Rallye Monte-Carlo.
Toyota joins other global industry leaders as a founding member of the new
international Hydrogen Council to promote the use of hydrogen power.
By February, Toyota’s cumulative global sales of hybrid electric vehicles reached
10 million units. The Yaris GRMN, a supercharged hot-hatch and the first
GRbranded model for Europe, is revealed at the Geneva Motor Show.
Toyota demonstrates further application of its hydrogen fuel cell technology with
the introduction of a zero emission truck for use at the port of Long Beach in
California.
The first Toyota GT86 Club Series model is launched in the UK in May, the Orange
Edition.
A new Land Cruiser is presented at the Frankfurt Motor Show in September. At
the Tokyo Motor Show in October, Toyota revealed a new family of battery electric
vehicles – the Concept-i Series – and a premium fuel cell electric concept car, the
Fine-Comfort Ride. Also in November, Toyota announces its plans to sell more than
5.5 million electrified vehicles a year by 2030, including one million zero emission
vehicles. Toyota’s Burnaston factory celebrates its 25th anniversary of vehicle
production.

59
2018 A new Toyota Auris – later re-named Corolla – debuts at the Geneva Motor Show,
following the news the model will be built by TMUK at its Burnaston factory. Also
in March, the new, fifth generation RAV4 is presented at the New York International
Auto Show.
The GT86 Club Series Blue Edition joins the UK coupe range in June.
Toyota wins the Le Mans 24 Hours in June with a one-two finish in its 20th entry in
the race.
The Toyota Supra prototype makes its world debut at the Goodwood Festival of
Speed in July. In August Toyota announces the Corolla name will return to its
European Hatchback and Touring Sports models, replacing Auris. The Land
Cruiser Utility Commercial joins Toyota’s LCV line-up.
European sales of Toyota self-charging hybrids pass two million in September.
Toyota announces it will supply its hydrogen fuel cell technology to its long-time
partner Caetano to manufacture zero emission buses in Europe.
The Paris Motor Show marks the debut of new Yaris Y20 and GR Sport models.
Production is launched in October of hybrid transaxles at Toyota’s Wałbrzych plant
in Poland. In November Toyota Gazoo Racing win Rally Australia and secures the
World Rally Championship manufacturers’ crown for Toyota.
Toyota announces Prius will be made available with a new intelligent all-wheel drive
system in 2019.
Toyota GB announces the new Corolla Hatchback will compete in the 2019 British
Touring Car Championship.
Toyota and Groupe PSA announce their partnership will provide Toyota with a new
compact van, while Toyota will take financial ownership of the TPCA production
centre in the Czech Republic, home to the Aygo and equivalent Citroën and Peugeot
city car models.

60
 The production-ready Toyota GR Supra is unveiled at the North American
2019 International Auto Show in Detroit. Also in January, a Toyota Hilux driven by
Nasser Al Attiyah wins the Dakar rally for Toyota Gazoo Racing South Africa.
In March an all-new Camry is launched, marking the model’s return to western
European markets following a 15-year absence. In the UK, Toyota launches
Parasport Powered by Toyota, a resources hub to help disabled people find out about
and become involved in sporting and fitness activities. At the Geneva Motor Show,
Toyota presents the debut of an intelligent all-wheel drive system for Prius.
A new compact van, Proace City, is announced at the Commercial Vehicle Show in
April.
In May, Toyota Gazoo Racing are declared winners of the 2018-2019 FIA World
Endurance

Championship. This is followed in June by a one-two finish for the team at the Le
Mans 24 Hours. In September, global Land Cruiser sales pass the 10 million mark.
Toyota also announces a new GA-B platform for its future small cars.
In October, Ott Tänak lifts the World Rally Championship title for Toyota. At the
Tokyo Motor Show, a preview of the second generation Mirai hydrogen fuel cell
car is revealed, together with a compact battery electric vehicle concept.
The new RAV4 Plug-in hybrid makes its debut at the Los Angeles Auto show in
November.

2020 Toyota announces a new compact SUV – Yaris Cross – will be introduced in
Europe, based on the platform used for the new generation Yaris. It also launches
Kinto, a new brand for its mobility services in Europe. The GR Yaris is announced,
a performance hatchback developed by Toyota Gazoo Racing and Tommi Mäkinen
Racing. The car goes on sale in late 2020 and earns universal critical acclaim in the
UK. Other key new product introductions include the Proace City compact van, the
all-new Yaris and an updated Hilux pick-up with a more powerful 2.8-litre engine.

61
2021 The new Yaris is named the European Car of the Year, repeating the feat of the first
generation Yaris 21 years previously. The UK model range continues to grow with
the introduction of the RAV4 Plug-in – Toyota’s first plug-in hybrid SUV – and the
seven-seat Highlander Hybrid SUV. Following the end of sales of the GT86 coupe,
Toyota reveals its successor, the GR 86, a third global model to be engineered with
input from Toyota Gazoo Racing.

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Toyota Fortuner Legender

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2755 cc | 8 kmpl | Diesel

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Toyota Land Cruiser 300

Rs. 2.10 Crore Check On-road Price

3346 cc | 11 kmpl | Diesel

Toyota Glanz a

Rs. 6.81 - 9.99 Lakh Check On-road Price

1197 cc | 22 kmpl | Petrol | CNG

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Toyota Innova Hycross

Rs. 18.82 - 30.26 Lakh Check On-road Price

1987 cc | 23 kmpl | Petrol

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 Existing Competitors

1. Volkswagen
Year Founded: 1937
Headquarter: Wolfsburg, Germany

Volkswagen is a German auto manufacturer that offers sedans, SUVs, coupes, and trucks. It is
the second top-selling automaker globally after Toyota. In 2022, Volkswagen Group sold 8.3
million vehicles.

Volkswagen has several subsidiaries, including Audi, Bentley, Lamborghini, Bugatti, Traton,
MAN, IAV, Renk, WirelessCar, Porsche, Ducati, Scania, Skoda, Seat, and MOIA. These brands
operate as separate entities and cooperate in research and development.

In Mar 2023, Volkswagen plans to boost productivity at its mass-market brands to cope with
increased competition. The company expects a 14% increase in vehicle deliveries in 2023 and
is the top Toyota competitor. [3]

Photo by Jaromír Kavan on Unsplash

69
2. Ford Motor Company
Year founded: 1903 Headquarter: Dearborn, Michigan

Ford is an automaker that makes sedans, trucks, SUVs, and heavy commercial vehicles. The
company sells automobiles under its Ford brand and luxury cars under its Lincoln brand. In
2022, Ford had 173,000 employees and operated over 100 facilities.

Ford competes against Toyota across the auto sector, from non-luxury petrol guzzlers to luxury
hybrids and electric cars. In 2022, Ford reported a net loss of $2 billion due to high production
costs and computer chip shortages.

Its luxury brand launched a new Lincoln Zephyr in 2022 and laid a roadmap to deliver a fully
electric Lincoln Aviator in 2024. Ford is the third best-selling automaker globally and one of
the top Toyota competitors. [4]

Photo by Robin Mathlene r on Unsplash

70
3. General Motors (GM)
Year founded: 1908 Headquarter: Detroit, Michigan

General Motors is an American multinational auto manufacturer with several subsidiaries,

including Chevrolet, GMC, Cadillac, ACDelco, and Buick. In 2022, GM sold 5.9 million
vehicles and operated 396 facilities across six continents.

GM was the world’s largest automaker for almost eight decades before losing the spot to Toyota
in 2008. The automaker lost its lead in the US to Toyota in 2021 and dropped to third place
behind Ford. In 2022, GM regained first place in US sales from Toyota.

The company will make $2 billion in cost cuts between 2023 and 2024 to attain sustainable growth and
remain one of the top Toyota competitors. [5]

4. Nissan Motor Corp.

Year Founded :1933
Headquarter: Yokohama, Kanagawa, Japan

Nissan is a Japanese multinational automobile manufacturer owned by Renault. The company

offers SUVs, sedans, trucks, and heavy commercial vehicles. In 2022, Nissan had 131,460
employees and sold around 3.23 million automobiles.

Nissan and Toyota offer affordable automobiles. In 2022, the Rogue was Nissan’s bestseller
when it sold 186,480 Rogues. However, Nissan’s global sales dropped 20.7% to about 3.23
million vehicles.

In Feb 2023, Nissan unveiled an electric car like a roadster with eye-catching styling, keeping Nissan
as one of the best alternatives to Toyota. [6]

71
5. Mercedes-Benz
Year founded: 1926
Headquarter: Stuttgart, Baden-Württemberg, Germany

Mercedes-Benz is a leading German automaker that produces luxury vehicles. The company
offers SUVs, sedans, trucks, buses, and coupes. In 2021, Mercedes-Benz employed around
152,000 people and operated car repair services in over 30 countries globally.

Mercedes-Benz is renowned for manufacturing elegant, high-class, and durable vehicles,

including the Mercedes-Benz C-Class, one of the most popular luxury cars worldwide. In 2022,
Mercedes-Benz delivered 2.05 million passenger vehicles.

The brand reported a 37% increase in sales for its high-end Maybach models driven by higher
demand in China, Japan, Korea, and the Middle East. Mercedes-Benz is the top Toyota
alternative for luxury cars. [7]

Photo by Kevin Bhagat on Unsplash

6. Hyundai Motor Group

72
Year founded: 1967 Headquarter:
Seoul, South Korea

Hyundai is a South Korean multinational conglomerate specializing in auto manufacturing. The

group was formed after Hyundai acquired automotive giant Kia Motors and merged the two
companies. In 2022, Hyundai had over 262,000 employees.

Hyundai IONIQ 6 won the Best in Class Award in 2022 in Euro NCAP’s Large Family Car
category. [8] Both Hyundai and Toyota offer affordable non-luxury cars. In 2022, Hyundai
Tucson scored 8.7 out of 10 based on US News’ research.

The redesigned 2022 Hyundai Tucson won the Best Compact SUV for the Money, Best Compact
SUV for Families, and Best New Cars for Teens categories, making Hyundai one of the top
Toyota competitors. [9]

Photo by RAPHAEL MAKSIAN on Unsplash

73
7. Bayerische Motoren Werke (BMW)
Year
191
6 Headquarter: Munich, Germany

BMW is a German multinational automaker that offers luxury vehicles and motorcycles. The
company started as a manufacturer of aircraft engines but later switched to the auto sector. In
2022, BMW had over 133,000 employees and sold 2.4 million vehicles and over 202,000
motorcycles globally.

Both BMW and Toyota are leading carmakers with several top-selling brands, but BMW is
synonymous with high-end luxury and comfort. The company manufactures and assembles its
tech-oriented premium vehicles and motorcycles in 31 facilities in 14 countries globally.

In Mar 2023, BMW invested around £600 million in its Mini plant at Cowley, Oxford, UK.
The brand introduced its first generation of electric Minis at the Cowley plant in 2019. BMW
is one of the best alternatives to Toyota for luxury vehicles. [10]

Photo by Zan on Unsplash

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8. Audi

Year founded: 1909

Headquarter: Ingolstadt, Bavaria, Germany

Audi is a German auto manufacturer and a subsidiary of Volkswagen. The automaker offers
gasoline-powered, hybrid, and all-electric cars. In 2022, Audi had 91,000 employees and
delivered 1.61 million vehicles. [11]

The luxury car brand offers several all-electric models, including Audi Q4 e-tron, Audi e-tron
GT Quattro, and Audi e-tron. In 2022, Audi increased deliveries of all-electric cars by
around 44.3% to 118,196.

The company also recorded a surge in sales for its non-electric models, including the Audi A3
at 12.1%, Audi A4 at 8%, Audi Q5 at 2.7%, and Audi Sport at 15.6%. Audi is one of the top
Toyota competitors in the luxury automotive sector. [12]

Photo by Blake Meyer on Unsplash

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9. Honda Motor Co., Ltd.
Year
194
8 Headquarter: Minato, Tokyo, Japan

Honda is a Japanese manufacturer of automobiles, motorcycles, and power equipment. The

company’s top-selling auto brands include Honda CR-V, Honda Civic, Honda HR-V, Acura
TLX, Acura RDX, Acura NSX, and Honda ZR-V.

In 2022, Honda’s sales dropped by 19.1%.

Honda’s offerings included the small-sized HR-V and the larger Honda CR-V, but the auto
manufacturer also introduced Honda ZR-V, a medium-sized vehicle between the HR-V and the
CR-V. In 2023, Honda increased CR-V’s price to compete with Toyota Kluger, Mazda CX8,
and Hyundai Santa Fe.

Unlike Toyota, Honda uses the agency model that eliminates dealers from its sales operations.
The company sells cars directly to customers at a fixed national price and is one of the top
Toyota competitors. [13]

Photo by Bryan Boatright on Unsplash

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10. Tata Group
Year
194
5 Headquarter: Mumbai, India

Tata is an Indian multinational automotive conglomerate. The group owns several brands,
including Tata Motors, Jaguar Land Rover, and Tata Technologies. In 2022, Tata Motors sold
over 500,000 passenger vehicles in India.

Tata produces passenger cars, trucks, vans, coaches, and buses. The company offers luxury cars
and utility sports vehicles bearing Jaguar and Land Rover makes. In 2022, Tata Motors India
was only 25,713 units behind Hyundai Motor India.

The Indian subsidiary closed the gap with market leaders Toyota and Hyundai in Dec 2022 and
is the top Toyota competitor in India. [14]

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11. Tesla, Inc.
Year
200
3 Headquarter: Austin, Texas

Tesla is an automotive and clean energy company founded by Elon Musk. The company
manufactures electric vehicles and batteries. In 2022, Tesla had 127,800 employees and sold
1.31 million cars.

Tesla competes against Toyota in the automotive sector, but Tesla specializes in electric cars.
The company also offers Powerwall, one of the most popular home battery pack systems
globally.

In 2021, Tesla changed its policy to only sell Powerwall with a rooftop solar or solar roof order.
However, the company reversed its decision in Mar 2023 and reopened orders for Powerwall
as standalone units. Tesla is the best alternative to Toyota for electric vehicles and batteries.
[15]

Photo by Tesla Fans Schweiz on Unsplash

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12. Suzuki
Year
192
0 Headquarter: Hamamatsu, Japan

Suzuki is a Japanese multinational corporation that manufactures automobiles, motorcycles,

all-terrain vehicles, and wheelchairs. It also offers outboard marine and internal combustion
engines. In 2022, Suzuki had over 69,000 employees.

Suzuki develops small, affordable cars with off-road capabilities. The company attained its
first global commercial success with the launch of Suzuki Jimny in 1973. In 2023, Suzuki made
300 Suzuki Jimnys to celebrate the model’s illustrious past.

The 2023 Suzuki Jimny Heritage is based on the GLX trim level and features red mudflaps,
retro body decals, and 15-inch alloy rims. Suzuki is an affordable alternative to Toyota. [16]

Photo by Sergi Kabrera on Unsplash

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13. Volvo Group
Year
192
7 Headquarter: Gothenburg, Sweden

Volvo is a Swedish automotive manufacturer. It is one of the most well-known car brands
globally and sells to customers in over 100 countries. In 2022, Volvo had around 100,000
fulltime employees, and the company’s top-selling models include XC60, XC40, and XC90.

Volvo offers sedans, wagons, buses, trucks, and heavy commercial vehicles. The company
seeks to become a fully electric car maker by 2030 and a climate-neutral organization by 2040.

In 2022, Volvo reported a 12% decrease in sales to 615,121 cars. The company has production
plants in Sweden, Belgium, the US, and China and is a worthy alternative to Toyota. [17]

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14. Mazda
Year
192
0 Headquarter: Hiroshima, Japan

Mazda is a Japanese automotive manufacturer. The company is best known for its CX series,
including CX-3, CX-5, CX-30, CX, 40, CX-60, and CX-70. In 2022, Mazda had over 46,000
employees and launched its first electric vehicle, the MX-30.

Mazda offers gasoline-powered, hybrid, and all-electric cars. The brand’s best-selling model in
the European region is the CX-5 with a petrol-powered and a new mild-hybrid gasoline version.
In 2022, Mazda launched the CX-60 in Europe and unveiled the CX-90 in the US. The company
has doubled down on its rear-wheel-drive (RWD) SUV offerings.

In 2023, consumers can expect a two-row CX-70 version in North America and the latest CX-
80 model in Europe. Mazda is a fast-growing Toyota competitor. [18]

Photo by Samuele Errico Piccarini on Unsplash

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15. Aston Martin
Year founded: 1913
Headquarter: Gaydon, United Kingdom

Aston Martin is a British automobile manufacturer that produces luxury sports cars and grand
tourers. Its vehicles compete against Toyota’s luxury and sports brands, including Lexus. In
2022, Aston Martin had 3,000 employees and operated around 160 car dealerships in 53
countries.

Aston Martin offers high-end luxury cars, including the DB series featured in James Bond
movies. The company is the royal car dealer for the Prince of Wales and operates the Aston
Martin Formula 1 team to target millionaires.

In 2022, Aston Martin sold 6,400 cars, but the brand reported a £495 million loss due to
increased spending on new models and supply chain problems. Yet, Aston Martin is an
ultraluxurious alternative to Toyota. [19]

Photo by James Sullivan on Unsplash

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Business Policy of Toyota

83
 Research and Development (R&D),

At Toyota Research and Development (R&D), we’re working to build a future where everyone
has the freedom to move, with a focus on vehicle design and development, procurement,
supplier engineering development, mobility, safety, and advanced research. Centered in Ann
Arbor, Michigan, Toyota R&D has some of the brightest thinkers from across America
dedicated to building the future of mobility where everyone can live more safely and
comfortably.

Advanced Mobility

The future of mobility starts here, with research 20+ years in the future. Advanced Mobility
builds sustainable solutions, manufacturing and testing five vehicles a day in our prototype
facility and translates this vision into an action plan with the Technical Strategy and Planning
Office.

• Integrated Vehicle Systems - within the Advanced Mobility team, this is a key area that
is looking for the latest and greatest talent, including Software Engineers. As a product
development group, Integrated Vehicle Systems (IVS) supports the full production
cycle, from research to production follow-up, of driver assistance and driving
automation systems. Through innovations like “Teammate” and other advanced safety
technologies, the work performed by IVS has directly impacted vehicles operating on
the road today to enhance mobility and help create a safer world.

Product Development Office (PDO)

PDO leads vehicle development for North American-designed vehicles through strong program
management with a keen focus on customer preferences and trends.

Powertrain

The Powertrain team leads, designs and tests the powertrain functions of North American
vehicles. Powertrain is preparing for the future of mobility through a variety of powertrain
technology while maintaining Toyota competitiveness through quality combustion vehicle
design.

Purchasing Supplier Development (PSD)

Comprised of Procurement and Supplier Development, PSD builds and maintains strong
relationships with hundreds of suppliers to procure direct parts and materials for all North
American-built vehicles and for North American indirect needs. Supplier Development
engineers partner with suppliers for quality and timely part manufacturing.

Product Performance Engineering (PPE)

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Our Materials Engineering group designs the raw materials used for vehicle production and
partners closely with Performance Analysis and Evaluation to test the materials, strength and
durability of these materials. Vehicle Performance Development conducts comprehensive
research and evaluation of the vehicle, including suitability for North American customers.
Quality Promotion advocates for its namesake internally and externally with support of field
issues, warranty support and design quality.

Vehicle Development and Engineering (VDE)

VDE designs key vehicle components — electronics, body, and chassis — for all North
American-built vehicles. VDE partners with functions across R&D to design parts that support
the future of mobility.

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 Corporate Social Responsibility (CSR) Policy

Toyota Motor Corporation delights itself in contributing to the harmonious and sustainable
development of society and the earth through all business activities that they do. Their
Corporate Social Responsibility (CSR) Policy is “Contribution towards Sustainable
Development”. In order to accomplish their CSR goals, Toyota focuses on their management’s
interaction with its stakeholders. The management strives to maintain sound transparent
relationships with their stakeholders using open and fair communication.

As shown in their mission statement on Corporate Social Responsibility, Toyota considers them
selves highly proactive in the automotive CSR world. Toyota seeks to be on the leading edge
of CSR with its three main goals:

Always Better Cars

Toyota prides themselves in not worrying about the “numerical targets” but rather focusing on
making better cars. Since everyone’s opinion is different, Toyota made four categories of cars:
1. cars specialized to meet tastes and sensibilities of customers (sports cars)
2. mass production vehicles
3. vehicles with a social purpose (ambulances and firefighting vehicles)
4. next-generation vehicles.

Enriching Lives of Communities

An essential requirement of Toyota’s business activities is that the local community accepts
them. They believe that there is absolutely no contradiction between the sustainability of Toyota
and the sustainability of the local community. One example of their dedication to Enriching
Lives of the Community is their plant construction. Once they build a plant, it establishes
permanent ties within the community. The plants have a close connection to not just the people
who work there, but also suppliers and their families and many other people in the wider
community.

Stable Base of Business

Toyota introduced external directors not just to secure mechanisms, but also to examine
individual actions from diverse perspectives and obtain advice. They have had external
corporate auditors for a long time, and an organization known as the International Advisory
Board (IAB) has been convened which consists of advisors to global Toyota selected from all
around the world. In each country and region, Toyota has systems for viewing things from
outside in individual managing companies to make sure the foundation of the business is stable.

COMMUNITY DEVELOPMENT AND INVOLVEMENT

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Toyota wants to build more than just great cars. They want to help build great places to live.
By sharing its principles and practices with their community partners, Toyota can drive toward
a better world for all.
DIVERSITY
Toyota’s recruitment and hiring processes are recognized for treating all candidates with respect
and dignity. The aim is to attract, develop and retain a diverse workforce that brings new ideas,
perspectives and skills to Toyota, while placing a priority on professional mentorship and career
advancement.

ENVIRONMENT
In order to contribute to the sustainable development of society and the earth, Toyota is
committed to proactively making social contributions in areas such as environmental education,
support for environmental action, conservation of biological diversity, and afforestation. Toyota
has direct relationships with organizations in Asia-Pacific, Europe, North America, and South
America.

EMPLOYEE RELATIONS
Created to help build inclusion and foster employee development, Toyota’s Business Partnering
Groups are employee-driven networks based on shared characteristics and life experiences.
These volunteer organizations work to support business objectives as well as strengthen the
diverse collection of ideas and voices that represent the future of Toyota.

• African American Collaborative

• Toyota Christian Fellowship
• Toyota Organization for the Development of Latinos (TODOS)
• Spectrum (LGBT)
• Toyota Asian American Society in Alliance
• Toyota Veterans Association
• Torque (Women’s Leadership)
• Toyota Young Professionals (TEMA)
• ToyotAbility (Elder & Special needs Support)
• ToyoPets
• Terra
LABOR PRACTICES/WAGES
This year is the first time in 12 years that labor unions at all Japan’s carmakers are seeking an
increase in base wages, which exclude overtime and bonus payments. They are all asking for
yearly bonuses exceeding five months of salary, the first time in 15 years that unions have asked
for the amount, Yasunobu Aihara, president of the Confederation of Japan Automobile Workers’
Unions, said this month. Toyota decided to wait until yearend (which ends 03/2014) reports we
completed to determine if the requests were going to be grants.

LEGAL ISSUES
Toyota Motor Corp will pay a record $1.2 billion to resolve a criminal probe into safety issues.
The settlement between the Justice Department and Toyota includes an admission by the auto
manufacturer that it misled American consumers about two different problems that caused cars

87
to accelerate even as drivers tried to slow them down. Although no individuals at Toyota were
charged, the case was the first federal criminal case of its kind since the passage of the first
U.S. auto safety law 48 years ago.
Management of Toyota's human resources

• Overview

Management of Toyota's human resources includes staffing and operations of a unit.

Individuals within the company are the focus of this group's efforts. These programs take care
of employee benefits, payroll management, and day-to-day operations. This HR department
can play a more active role in hiring the right talent, taking care of the workplace needs, hearing
the voice of employees, promoting teamwork, and mediating conflicts that would maximize
efficiency, productivity, and competitiveness in manufacturing companies because of the
comparatively complex organizations and processes that connect to levels of employees.

• Characters / Company

The Toyota Motor Corp. is a global enterprise with 50 manufacturing plants and over 170 distribution
centres.

It was established in Toyota, Japan, in 1937. A variety of products and services, such as
speciality steel, automobile parts, marine vessel engines, biotechnology, real estate and finance,
electrical components, and household appliances, are offered by the multinational, according to
the company's Annual Report (2014). (Liker &Hoseus 2008).

Auto and accessory manufacturer is ranked second in the industry behind General Motors
(GM). However, according to a variety of sources, the secret to its success in the automobile
business lies in its ability to pick the right employees.

• Main Idea

When it comes to HRM, Toyota uses a variety of models. This includes remuneration and benefits,
employee relations, and the company's health and safety.

Toyota is well-known in the automotive industry for the timely release of new models and a
strong focus on human resources development. Lean manufacturing's implementation ushered
in new HR duties

• Example

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For Toyota, not having to lay off workers is a longstanding tradition. They achieve this through
a process known as Lean management, which entails hiring only the finest candidates, asking
them to work more in good times but not forcing them to do so in bad ones.

A worker who was injured on the assembly line was given an office job instead of being fired
by Toyota, according to Besser (1995, p. 1). A company's trust in its personnel would rise due
to this strategy.

• Body

Affiliation

Lean manufacturing has become the norm in the selection process. Employees should have
additional skills beyond the standard set to cut down on waste throughout the production
phase.

1. The social aspects of teamwork and cooperation

2. A desire to learn new things; zeal.

3. Decisiveness in the face of adversity

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The company is looking for people who can go above and beyond the responsibilities of their position.

Toyota employs a multi-tiered approach to recruiting that includes a stringent application

process. It necessitates the use of a predetermined protocol. Judges at Toyota, for example, look
at a candidate's aptitude as well as their technical skills and personal attributes. When it comes
to assessing an employee's potential and aptitude, interpersonal interaction plays a vital role in
the decision-making process of the assessors.

Selection

To succeed, Toyota looks for people that have a strong work ethic. Those that are chosen should
have a history of perseverance and a strong desire to learn and perform well.

Training

"We don't just manufacture vehicles, we build people," is a familiar refrain at Toyota.

Every step in creating a new program, every kaizen event, and every flaw in the product are
chances to. Toyota's training and development concept is based on this. Its first aim is to train
the best personnel possible. This is a core tenet of the Toyota Way, and it has spread throughout
the firm.

By constructing three Global Production Centers (GPCs) in Thailand, England, and Kentucky,
Toyota boosts its focus on training and ensures that all North American facilities have access
to the same resources. In addition, every factory has a satellite centre being built around the
world. Jeffrey K. Liker and David P. Meier, 2007, p. 22, write: When implementing official
training programs for new employees, Toyota discovered that there were not enough trainers
with the necessary skills to teach the influx of new employees.

Performance evaluation

Toyota prioritizes total system efficiency above individual efficiency. During the evaluation of
standardised work, it is critical to go beyond the individual's performance and examine the
overall image in the workplace. (Jeffrey K. Liker and David P. Meier, P141, 2007)

Toyota promotes the separation of variation within labour processes. It has a system in place to
ensure that the value-adding team associates are not distracted by other difficulties while
working on their respective jobs. (Jeffrey K. Liker and David P. Meier, P141, 2007) And this
is very important in judging performance.

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Compensation

Toyota's success is now ascribed to the fact that it only hires the top employees. Toyota can
provide greater salary and benefits due to other mitigating conditions, attracting and retaining
exceptional employees. Again, there is some truth to this justification. Toyota does pay a good
wage, but it is not the top in the country's business. (Jeffrey K. Liker and David P. Meier, 2007,
pp. 12–13)

• Conclusion

According to the study's findings, HRM positions play an important part in Toyota's growth.
However, diverse stakeholders all over the world are concerned about a number of concerns
related to the process of hiring new staff.

The organization must focus its management on critical areas such as staff training, recognition,
leadership development, and retention in order to get full-fledged results from its goal
execution methods.

91
 Toyota’s Human Rights Policy

Toyota refer to and respect the “United Nations Guiding Principles on Business and Human
Rights” (UNGP) and promote activities related to human rights based on the UNGP. Seeking
“the happiness of someone other than ourselves” has always been a part of Toyota’s Founding
Principles and this was a driving force that led to the invention of the automatic loom which
can be considered as the beginning of Toyota. This spirit and pursuit is still within us today,
although our mission has now grown to "producing happiness for all". Within every country
and every region in which we operate, we aim to be the best company in town that is both loved
and trusted by the people. The automotive industry is supported by numerous people, including
local communities, suppliers, business partners such as dealers, customers, etc. We will
continue to protect and improve the human rights of our employees, customers, and all people
involved in our business activities in order to be beneficial towards society. This policy stands
as the highest level policy related to human rights within Toyota and shall be adhered to by
everyone employed by Toyota.

１．Commitment for the "respect for human rights" We recognize that our business operations
could be at risk to potential and actual human rights impacts. We seek to uphold the human
rights of others, and shall address any human rights infringements that may arise from our
business operations by taking responsibility for them. We expect our business partners and
other parties to also respect and not infringe upon human rights, however if they do, then we
will respond appropriately based on this policy. We respect and refer to international norms
such as the Universal Declaration of Human Rights. Toyota is guided by the United Nations
Guiding Principles on Business and Human Rights and therefore we have a corporate
responsibility to respect human rights. This policy ensures compliance with International
human rights obligations together with the laws and regulations of the countries in which we
operate within. In operations where there is a difference between the national and international
standard for human rights, we will adopt the higher standard of the two. If there is conflict
between the standards, then we will strive to the utmost to respect internationally recognized
human rights to the greatest extent possible.

２．Scope of responsibility This policy applies to all executives and employees in Toyota and
its subsidiaries. We also expect our business partners, including our suppliers, to understand
and agree with this policy and to work with us to ensure that their business operations respect
this policy.

３．Human Rights Due Diligence In order to fulfill the responsibility to respect human rights,
we will establish and continuously implement a Human Rights Due Diligence* system. (*The
process which is implemented for the identification, prevention, and mitigation of negative
human rights impacts)

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４．Remedy If it is certain that we have caused or contributed to an adverse impact on human
rights, we shall immediately implement corrective measures. In addition to this, we will
continue to develop and operate a practical remediation mechanism by expanding the function
of our existing grievance mechanism which has been established in Japan and also in other
regions.

５．Education and Training In order to ensure that this policy is embedded within our internal
operations and communicated to our external stakeholders, we provide appropriate education
and training to all our executives and employees, and we concurrently encourage our business
partners such as suppliers and retailers to understand our expectations. We also ensure that this
policy is incorporated within the necessary processes, such as each function’s policies and
guidelines, so as to become institutionalized across all of our corporate activities.

６．Monitoring and disclosure We will ensure the complete implementation of this policy by
continually tracking its progress, while at the same time, allowing for revisions to the policy if
needed. We will disclose our actions for respecting human rights, together with the appropriate
measures, within our official website and other communication platforms.

７. Consultation with stakeholders In the event that a human rights violation occurs, Toyota
will consult with external stakeholders to address the issue and ensure continual
communication. This policy was approved by the Board of Directors of Toyota Motor
Corporation on September 29, 2021.

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 Toyota core marketing strategies & campaigns

Marketing strategy is the course of action that an organization intends to implement in order to

achieve certain marketing objectives. Toyota’s marketing strategy varies depending on the

market requirements of different geographical locations. Emphasizes the pride of Japanese

quality, and one way the brand delivers on that promise is through their Retractable Tonneau

Covers, which offer both functionality and sleek design for Toyota truck owners. It also has a

large dealership network to provide products globally and a culture of innovation to keep every

automobile at high quality. But, most importantly, Toyota always put the customer’s best

interests on the highest priority for the marketing strategy. This can be the secret to the

company’s long success.

In this section, let’s see the core marketing strategies of Toyota, as well as some noteworthy

campaigns, and see if the company is the role model that other automotive companies need to

learn.

Customer’s benefits are always the highest

The priority of Toyota’s management teams is to increase shareholder value steadily in the long

run. As the company continues to expand beyond Japan, it will increasingly face market risks,

which can vary from country to country. To create a company that can withstand worldwide

volatility at all times is difficult. However, Toyota uses the concept of balance fluctuations

94
(heijunka), part of the Toyota Production System, to reduce risks. The basic philosophy is to

produce vehicles for where the customers are staying. This strategy gives the ability to hedge

against fluctuations in foreign currencies and still provide the best experience to the customers.

Customer first is one of Toyota’s core tenets. And by customers, the company doesn’t mean

just the end customer. On the production line, even the person at the next workstation is

considered a customer. This leads to great team work and gradual analysis to make sure

everything is perfect. Put it another way, Toyota aims for continuous improvement to provide

the best products for customers, both outside and inside.

While this is more like a production strategy, the philosophy has actually been very famous and

is a considering factor for consumers to select Toyota products. By promoting a working

attitude that is respectful towards customers, Toyota is able to portray a positive image of an

automobile brand that people can trust. That is the Japanese way the whole world knows and

loves.

In 2019, Toyota proudly introduced the new model of Prius - a hybrid automobile and invited

consumers to go more places in the “It’s Unbelievable” campaign. The company used smart

and joyful advertising to demonstrate the key advanced technology features of the car in many

environments of snow, highway, and parking. What is special is that the campaign connected

with new audiences like Hispanic, Asian Indian, and East Asian.

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Differentiation strategy for each region

Toyota’s main marketing strategy is a differentiation strategy, which aims at making its

products different from competitors’ products. Competitors such as Ford or General Motors are

trying to gain market share using the same global marketing strategy, while Toyota applies

specific marketing strategies to each market. Ford produces one type of car at a time and makes

it to the global market, while Toyota manufactures products to sell globally and for a particular

country or region. In a country with special weather conditions such as Saudi Arabia, Toyota

provides specific automobiles to suit their customers.

Even with something like slogans, Toyota decided to make it different for each country. For

Australia, Toyota’s slogan is “Oh What a feeling!”. For Europe, the slogan turns into “Nothing

is impossible”. While in Japan, the company’s slogan changes very often; the current version

is “Start your impossible” since 2017. And in the US, the slogan has been “Let’s go places”

since 2012.

The differentiation strategy adopted by Toyota helps the company produce products that are

different from those of competitors. The strategy allows Toyota to price the products

strategically, because its products are different from those of competitors. Toyota’s marketing

effort has also been successful in gaining market share, as it can deliver products according to

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customer needs. The marketing goals in the United Kingdom and Saudi Arabia were achieved

due to different marketing strategies applied in different countries.

On the other hand, it is also found that Ford’s marketing strategy to sell the same product

globally led to failure in 2012 since it generated losses. This emphasizes that any company’s

marketing strategy should be set according to the specific market, and one strategy cannot fit

all geographic locations. Therefore, the differentiation marketing strategy plays a vital role in

Toyota’s success and is very helpful in increasing sales or achieving marketing goals.

A large dealership network across the globe

Ever since Toyota is established, the founder Kiichio Toyoda has passed on the view of

marketing as a critical tool to build a successful company. And the dealership network is the

most focused marketing channel that Toyota uses to connect with customers. In 2015, Toyota’s

network had 180 dealerships with nearly 4,700 sales and service outlets inside of Japan. Out of

these, only 15 dealerships are owned by the company, the rest are independent.

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Outside Japan, Toyota automobiles are sold through 170 distributors in nearly 190 countries

and territories. The company maintains the large network of dealers through the distributors.

Toyota also has factories in many parts of the world, manufacturing or assembling vehicles for

the local markets of Japan, Cana, the UK, the US, South Africa, France, Brazil, China, Vietnam,

Mexico, Thailand, Russia, and more.

A company’s culture of innovation

Toyota expanded quickly and on a large scale, but the company’s staff seem to be handling the

fast change very well. To keep the company’s fundamental operating principles suitable for any

situation, Toyota has its own management philosophy called The Toyota Way - an expression

of values and conduct guidelines for every Toyota employee worldwide.

Under the most two important headings of Respect for People and Continuous Improvement,

Toyota summarizes the values and guidelines that employees should follow. This makes staff

always consider long-term thinking, problem solving processes, people development, and

continuous root problems solving. The Toyota Way nurtures the employee’s ability to be
dissatisfied with the status quo and constantly improve the products.

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The Company has a differentiated business model to deliver efficiencies and contain risk based on the
requirements of the target segment. Our business has the following characteristics:

New car loan and Used car loan to retail/ corporate customers.

Wholesale Finance/ Dealer Funding is offered to Toyota Dealers to cover their business requirements.

Loans are structured based on customer needs, cash flows, income evaluation, credit history, assets of
the customer, customer profile, occupation, intended usage of vehicle (personal/ commercial), etc.

Where the customer has no credit history, loans are sanctioned after detailed evaluation of customer
profile and basis personal discussions with the customer the credit decisions are taken.

Credit decisions are centralised but multi-layered with employees having different levels of credit
underwriting authorities.

A clear set of operational risk control procedures are embedded in the Credit Policy to ensure process
adherence and efficient risk mitigation.

GOVERNANCE MECHANISM FOR INTEREST RATE

The Board shall have the oversight for the Interest Rate Policy of the Company. The Company decides
on the interest rates for each of its loan product from time to time, based on advice, discussion and
consideration given by the Pricing Committee within the purview of Interest Rate Policy. The Pricing
Committee comprises of senior management of the Company and chaired by MD & CEO.

The Company shall disclose the interest rate applicable to a loan transaction in the loan documentation
and the customer will not be compelled to sign the same unless the same is acceptable.

Business verticals can have their internal pricing mechanism under the overall framework of board
approved interest rate policy for company in deciding the spreads to arrive at final rate. Changes to
business level internal pricing, if any, would need to be approved by the ‘Pricing Committee’.

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 Analysis of business strategy

Marketing mix of Toyota

The marketing mix is the technique used by a company to promote its products. It is categorized
into 4p’s which are price, product, promotion, and place.

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Toyota uses its marketing mix to interact with its target customers. It has a wide range of
markets to target in terms of consumer preferences, regional and local market conditions. It has
adapted its marketing mix to these different customer preferences in the market.
Its continuous growing success shows how well the company has implemented its marketing
mix.
Let us start with its marketing mix by first looking at the product strategy of Toyota.

1. Toyota’s Products Strategy (Product Mix)

With the market diversified demand for different preferences, Toyota has a diverse set of products to
serve all types of customers. These are some of the products that the company provides:
1. Toyota automobiles
2. Lexus automobiles
3. Welcab series
4. Marine products
5. Spare parts and accessories
6. Engines

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There is a variety of products for different people for example- Lexus automobiles are luxury
products, whereas the Welcab series are automobiles specially modified for the elderly and
people with disabilities. It also manufactures yachts, engines, spare parts, accessories for
automobiles and marine products.
Now let us see the Place strategy of Toyota.

2. Toyota’s Place/Distribution Strategy (Place Mix)

Product mix determines the place where the products are made available for the customers to
access them. Making products available for customers is an important part of a business.
Toyota has two main distribution strategies:
1. Dealerships
2. Retailers
Most of its transactions happen with its dealerships. However, there are retailers like auto
supple stored also who sell its products like spare parts and accessories. On these facts, we can
see that the company depends more on dealerships to sell its products.
Let us now see the Promotional strategy of Toyota.

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3. Toyota’s Promotion Strategy(Promotional Mix)

Toyota has covered all the promotional tactics in their promotional strategy. They market their
products byways of billboards, newspapers, T.V, social media platforms(Youtube, Twitter,
Instagram, etc), and websites.
These are some of the promotion activities used by Toyota :
1. Personal selling
2. Advertising
3. Public relations
4. Sales promotion
5. Direct selling
They use personal relationships to promote their products like Green Program for
environmental initiatives, an initiative to reduce greenhouse gas emissions, etc.
Toyota uses catchy slogans for the brand and endorses celebrities as brand ambassadors creating
a brand recall for customers. The current brand ambassador of the company is Ayushmann
Khurrana.

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It uses personal selling by sales personnel, they personally promote their products to potential
buyers.
Lastly, we will see the Pricing Strategy of Toyota.

4. Toyota’s Price Strategy (Price Mix)

Toyota has been providing affordable price vehicles to its customers. They allow credits to their
customers on low-interest rates to make more profit.
Its price strategy depends on the competition, segment, geography, and demand. They have a
flexible pricing strategy depending on the change in market conditions, and competitors.
They use two pricing strategies which are:
1. Market-oriented pricing
2. Value-based pricing
However, the firm also uses the value-based pricing strategy, which sets prices based on the
actual and perceived value of the product. The company uses value-based pricing for high-end
or more expensive products, such as the Prius and Lexus cars.

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 Toyota PESTEL Analysis

A Toyota PESTEL Analysis will evaluate the impact of the various external factors on the
company's performance. Here is a detailed PESTEL analysis of the brand that will let us know
about the forces and their advantages and disadvantages of them over its operations. The
PESTEL factors that one should consider while executing the PESTEL analysis of Toyota are
elaborated below:

Toyota PESTEL Analysis

Political Factors:
The political factors are vital to continue functioning for a multinational company like Toyota.
Recently several companies have had to depend on political factors for their growth and
development, thanks to globalization. The significant political factors in the case of Toyota are,

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 • A global company: Toyota is a company that has its manufacturing units across 28
countries and sells its produced vehicles in over 170 countries across the globe. For the
company to keep functioning, the political status of these countries is a very vital aspect.
• Political stability: The political stability of a specific location decides whether the
environment is positive or negative for the business. The government and its policies
decide the future of international countries. Political stability is equivalent to a
favorable environment for a business to run and thrive.
• Free trade agreements : The trade agreements with the local and state government
allow a company to operate in a specific location. Free trade agreements are profitable
to the business and will further enhance brand growth.
• Eco-friendly products: Another opportunity lies in producing and promoting
ecofriendly products. It is possible with government support. The macro-environment
of the units across the countries depends on the respective governments. For instance,
Japan never had a good political relationship with China. Thus, Toyota could not
flourish in this country. Due to the political turmoil in Europe in the recent past, the
business was affected a great deal. In most parts of Asia, the political environment was
much more stable and thus helped Toyota to gain a better position.

Economic Factors:
It is well-known that the better the economy, the better the chance of a business. Better the
financial situation of the world market, the better it is for the growth of global companies like
Toyota. The economy is a significant factor among other PESTEL factors. The market
conditions are dependent on these economic factors. Factors like the GDP, per capita income,
inflation, and purchasing power of an economy are directly proportional to a company's
performance. The economic factors that influence the macro-environment of the brand:

• Competitors: The automobile industry has been seeing stark competition in recent
years. The strong competitors of Toyota are companies like Tesla, Ford, and BMW.
Also, on the flip side, the weakening of the Yen compared to the US dollar can give a
better opportunity to gain in the US market.
• Growing economies: Developing countries are rapidly growing. Thus, creating an
opportunity for a potential market for automotive manufacturers. The growth of the US
economy means there is a massive opportunity for the manufacture and sale of vehicles.

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 • The recession caused by the pandemic: Though the pandemic has hit below the belt,
adversely affecting the demand, supply, and overall global market, the market is seeing
a steep rise post-pandemic. The world economy is growing at a fast rate compared to
the pre-pandemic situation. It is a favorable environment for a company like Toyota to
sustain and grow.

Socio-cultural factors:
Toyota is a multinational brand. Thus experiences the impacts of sociocultural factors on
different communities belonging to varied geographical locations. This dimension of the
PESTEL analysis of Toyota refers to the social trends that influence the business. In the case
of Toyota, the primary external social factors are:

• Vehicles recalling: Toyota had to recall vehicles due to faulty fuel pumps. They had to
recall a staggering number of automobiles that counted to over 700,000. It not only
hugely cost the company but also damaged its reputation. They resolved the problem,
but the mark remained.
• The demand for electric vehicles: The market is changing rapidly, and customers are
more preferring eco-friendly cars to existing ones. Electric and hybrid vehicles are
much more in demand right now. It is an opportunity for a vehicle manufacturing
company to produce more environmentally friendly cars to attract the current market.
• Faulty Safety issues: Safety features are an essential element that a customer looks
into a car. Toyota vehicles were declared unsafe due to faulty acceleration and pedal
systems. Toyota had to face the outrage of many customers and thus lost their trust. It
cost the company billions of dollars.
• Economical Indian market: Due to the cultural aspects, the Indian market prefers
economic yet bigger cars. The market was a perfect fit for automobiles, like Innova,
which was an instant success.

Technological factors:
The company spends millions of dollars annually to encourage research and development in
the automotive sector. The result is that the brand has some technological advancements on its
hat.

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 • Innovative Hydrogen cars: It is essential to sustain the business in the competitive
market. Toyota was the first to introduce hydrogen cars in the market with its research
and development motive. Hydrogen and electric cars are the future of the automobile
sector. Toyota moved a step forward compared to its competitors by launching
hydrogen cars.
• Going by the technological trends: Toyota follows the rule of continuous progress. It
has always accepted the latest trends in automobile technology which has aided the
brand to stay on the top list of the global market.

Environmental factors:
Some environmental factors impact a company's growth. PESTEL analysis of Toyota shows
that these environmental factors have a pivotal role to play in shaping the future of a vehicle
manufacturing company.

• Lower carbon footprints: Toyota understands that a car manufacturer affects the
environment. The most challenging environmental issue right now is lowering the
carbon footprint. The company has introduced hydrogen, electric, and hybrid cars to
fight the number of carbon emissions. It also believes in a recycle-based sustainable
society and thus optimizes its operations accordingly.
• Legal Factors: Legal compliances assure the smooth functioning of an organization.
Laws such as labor, quality-related, and other business laws vary across nations and
markets when followed correctly to ensure a positive effect on the company's growth.
However, sometimes, some legal issues may cause a disturbance in the
macroenvironment of the business.

Legal factors:

• Recall settlement: When Toyota recalled its vehicles with faulty mechanisms, some
outraged customers filed a case against the company. It resulted in heavily costing the
brand. The brand settled the case for 1.2 billion dollars with the cost of fixing the faults.
• Lawsuits : In another instance, an Indian company filed a lawsuit against the
manufacturing giant. The Indian company named Prius was fighting for its trademark.

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 Toyota SWOT Analysis

This SWOT analysis of Toyota enumerates the internal and external strategic factors relevant
to the automotive business and its industry. The SWOT framework pinpoints the most
significant opportunities, threats, and organizational weaknesses that Toyota must address
using its strengths. As a global leader in the automotive industry, the company effectively
addresses such factors. This SWOT analysis provides insights into the factors influencing the
business and the realization of Toyota’s mission statement and vision statement. The
automaker’s high performance serves as an indicator of its ability to address the issues
enumerated in this SWOT analysis.

This SWOT analysis shows that Toyota remains strong in the global automobile market,
although issues related to competition, organizational structure, and corporate culture must be
addressed. The success of Toyota’s generic competitive strategy and intensive growth
strategies depends on business effectiveness in addressing the challenges and opportunities
included in this SWOT analysis.

Toyota’s Strengths (Internal Factors)

The company’s strengths indicate the ability to keep the position as one of the top auto manufacturers in
the world. This element of the SWOT analysis model identifies the internal
strategic factors that serve as capabilities of the firm. Toyota’s strengths are as follows:

1. Strong brand image

2. Control of an expansive global supply chain
3. Rapid innovation capabilities

Toyota is one of the strongest brands in the global automotive industry. The company’s control
of its global supply chain is also a strength that enables resilience and market-based risk
minimization. Furthermore, Toyota has an organizational culture (company culture) that

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facilitates rapid innovation, which is crucial for long-term competitive advantages. This part of
the SWOT analysis shows that Toyota’s strengths support its position as one of the biggest
automobile manufacturers in the world.

Toyota’s Weaknesses (Internal Factors)

The company’s weaknesses point to barriers and challenges in the automotive business
organization. This element of the SWOT analysis model determines the internal strategic
factors that serve as obstacles to business growth. Toyota’s main weaknesses are as follows:

1. Rigidity of the hierarchical organizational structure

2. Secrecy in the organizational culture
3. Effects of product recalls

Along with strict quality standards and efficiency measures for operations, the global hierarchy
of Toyota’s organizational structure (company structure) prevents maximum flexibility of
regional operations. Also, the company’s culture of secrecy is a weakness that reduces response
times in addressing emerging problems. In addition, the company’s product recalls weaken the
automotive business because the recall processes consume business capacity that could be used
for product distribution instead. Also, these recalls have a negative effect on the automaker’s
brand strength. This part of the SWOT analysis shows that Toyota can improve its performance
through adjustments to reduce the weaknesses based on its organizational structure and culture.

Opportunities for Toyota (External Factors)

The company’s opportunities are mainly based on technological and economic trends relevant
to the automotive industry and the transportation market. This element of the SWOT analysis
identifies the external strategic factors that the firm can use to improve its business.
Toyota’s most significant opportunities are as follows:

1. Growing markets in developing countries

2. Rising demand for fuel-efficient and electric automobiles
3. Growing interest in advanced electronics in vehicles
4. Advantages based on the weak Japanese Yen vs. U.S. Dollar

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Developing markets present the opportunity for Toyota to increase revenues by further
penetrating these markets. Also, the current trends of the increasing demand and interest for
higher fuel efficiency, electric vehicles, and advanced electronics present opportunities for
Toyota to focus its innovation on these directions. In addition, the weaker Japanese Yen versus
the U.S. Dollar means higher competitiveness of products and components exported from
Japan to the U.S. This part of the SWOT analysis shows that the automotive company must
emphasize market penetration and innovation to exploit its opportunities.

Threats to Toyota (External Factors)

The threats to the car manufacturing business are based mainly on the competitive landscape.
This element of the SWOT analysis determines the external strategic factors that can reduce
the firm’s performance. In Toyota’s case, the main threats are as follows:

1. Growing market presence of low-cost competitors

2. Rapid innovation of competitors

Toyota faces the threat of competition with low-cost automobiles from Korean, Chinese, and
Indian manufacturers, which have been increasing their presence in foreign markets. The
company also experiences the threat of rapid innovation of competitors, like General Motors,
Tesla, Ford, Nissan, and Honda, as well as Hyundai, Volkswagen, and MercedesBenz. The Five
Forces analysis of Toyota demonstrates that these competitors are responsible for strong
competitive pressures in the industry. This part of the SWOT analysis shows that Toyota must
ensure competitive advantages, such as through innovation.

Insights from this SWOT Analysis of Toyota

This SWOT analysis of Toyota Motor Corporation identifies key issues, such as the effects of
competition and the company’s weaknesses based on its organizational structure and culture.
To address the threats based on competition, the company needs to maximize its competitive
advantage based on its innovative capabilities to support competitive mobility solutions. The
company can also further adjust its culture and structure to optimize its flexibility in
decisionmaking and problem solving.

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Conclusion

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 Conclusion

In conclusion, the research conducted on Toyota has shed light on various aspects of the
company's operations, strategies, and impact on the automotive industry. Toyota's commitment
to innovation, quality, and sustainability has been evident throughout its history, contributing
to its position as a global leader in the automotive market.

The analysis of Toyota's production system, including the renowned Toyota Production System
(TPS), revealed the company's relentless pursuit of efficiency and continuous improvement. This
unique approach has not only allowed Toyota to thrive in a competitive industry but has also
influenced manufacturing practices worldwide.

Furthermore, the examination of Toyota's strategic initiatives highlighted the company's

adaptability and foresight in responding to market trends and challenges. From pioneering hybrid
technology with the Prius to investing in research and development for autonomous vehicles,
Toyota has positioned itself as a forward-thinking industry player.

The study also emphasized Toyota's commitment to sustainability, with initiatives ranging from
eco-friendly vehicle designs to a focus on reducing environmental impact in its manufacturing
processes. This commitment aligns with evolving consumer preferences and global efforts to
address climate change.

Despite its successes, challenges such as global economic fluctuations, supply chain disruptions,
and the dynamic nature of the automotive industry pose ongoing considerations for Toyota.
However, the company's resilient and proactive approach to addressing challenges suggests its
capacity to navigate uncertainties successfully.

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Screenshots

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https://www.google.co.in/ https://www.ibisworld.com/us/company/toyota-

motor-corp/10379/ https://iide.co/case-studies/marketing-mix-of-toyota/

https://www.statista.com/statistics/316786/global-market-share-of-the-

leadingautomakers/

https://www.comparably.com/companies/toyota/competitors

https://bstrategyhub.com/toyota-swot-analysis/

https://www.ibef.org/industry/india-automobiles

https://www.britannica.com/topic/Toyota-Motor-Corporation

https://global.toyota/en/company/ https://en.wikipedia.org/wiki/Toyota

https://hbr.org/2008/06/the-contradictions-that-drive-toyotas-success

https://www.toyota-industries.com/company/procurement/policy/

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 Glossary of terms

AA Affirmative Action

ABCI Association of Business Communicators of India

ABP Annual Business Plan

AC Air Conditioner

ACC Apex Compliance Committee

ADR Automated Demand Response

AGC Automatic Generation Central

AGL Adjaristsqali Georgia

AGM Annual General Meeting

AGM Antang Gunung Meratus

AI Artificial Intelligence

ALIG A Literacy Initiative Group

ALMM Approved List of Models and Manufacturers

AMI Advanced Metering Infrastructure

AMP Aspire-Motivate-Perform

ANM Auxiliary Nurse Midwifery

APC Auxiliary Power Consumption

APM Asset Performance Management

APMC Agricultural Produce Market Committee

AR Augmented Reality

ASO Asset Supply Optimization

AT&C Aggregate Technical and Commercial

AYLP Achieving Young Leadership Potential

B2B Business-to-Business B2C Business-to-Customer

BA Business Associates

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BCC Behavioural Change Communication

BCD Basic Custom Duty

BCDMP Business Continuity and Disaster Management Plan

BCP Business Continuity Plan BEE Bureau of Energy Efficiency

BESS Battery Electric Storage Solutions

BFG Blast Furnace Gas

BFP Boiler Feed Pump

BIPV Building Integrated Photovoltaics

BIS Bureau of Indian Standards (formerly Indian Standards Institution)

BITS Pilani Birla Institute of Technology and Sciences, Pilani

BKC Bandra Kurla Complex

BLDC Brushless Direct Current

BNEF Bloomberg New Energy Finance

CAGR Compounded Annual Growth Rate

CCoW Coal Contracts of Work

CCRA Central Control Room for Renewable Assets

CCS Carbon Capture & Storage

CEA Central Electricity Authority

CEIIC Clean Energy International Incubation Centre

CEO Chief Executive Officer

CER Certified Emission Reduction

CERC Central Electricity Regulatory Commission

CERT Computer Emergency Response Team

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