新款RAV4的总续航里程最多增加到1350公里以上 丰田的新HV系统采用了节能性能高的碳化硅（SiC）半导体。另外，通过抑制传导至车轮驱 动部位的电力损耗，将输出功率提高了12%以上。用于电力转换的"逆变器"也通过小型化， 将安装在其他地方的部分功能集成到驱动装置"e-Axle"中，实现一体化。 丰田还成功使e-Axle的整体高度降低了15%，重量也减轻18%。改进后的结构使车内空间更 加宽裕，还有助于提高座椅的舒适度。 丰田公布的新款混合动力系统（6月21日、东京江东区） 丰田还计划将PHV的纯电动模式的续航里程进一步提升至200公里以上。丰田社长佐藤恒治也 认为，"作为搭载新电动单元的动力传动系统，应该进一步升级"。 "已成为世界上最高效的PHV系统"，丰田的新款"RAV4"升级了PHV发动机，纯电动模式行驶 的续航里程也达到原来1.5倍的150公里。不过，中国企业仍领跑PHV领域，比亚迪拥有满电 满油状态下可行驶2100公里的车型等…… 丰田的新款SUV"RAV4"升级了插电式混合动力车（PHV）的发动机，总续航里程最多增加到 1350公里以上。纯电动（EV）模式行驶的续航里程也达到原来1.5倍的150 ...

Core Viewpoint - The establishment of Green Metals Battery Innovations, LLC, a joint venture between LG Energy Solution and Toyota Tsusho Corporation, aims to enhance battery recycling efforts and promote a circular economy in the battery supply chain [1][5][9]. Company Overview - LG Energy Solution is a leading global manufacturer of lithium-ion batteries, with over 69,600 patents and a commitment to achieving carbon neutrality by 2050 [7]. Joint Venture Details - The joint venture will construct a pre-processing plant in Winston-Salem, North Carolina, to extract black mass from battery production scrap [1][9]. - The facility is expected to commence operations in 2026, with a processing capacity of 13,500 tons of scrap annually, equivalent to over 40,000 automotive batteries [3][9]. Recycling Process - The pre-processing plant will dismantle and shred battery production scrap to extract valuable raw metals such as nickel, cobalt, and lithium [2][4]. - The extracted black mass will undergo a post-processing stage to recover raw materials for new battery production, aiming to establish a closed-loop system [4][9]. Environmental Impact - The collaboration seeks to drive down carbon emissions through circular economy initiatives, enhancing the recycling infrastructure in North America [5][6].

Economic Environment - The global economy maintained a growth rate of around 3% for fiscal 2025, with the U.S. economy remaining resilient and China showing underlying support despite a real estate downturn[25]. - A downturn in financial markets may adversely affect Toyota's ability to raise capital, risking its financial condition and cash flows[50]. Market Demand and Competition - Demand for vehicles has moderated as pent-up demand from semiconductor supply constraints has been largely absorbed, leading to uncertainty in future demand changes[26]. - The automotive market is experiencing increased competition, particularly in the areas of Connected, Autonomous, Shared, and Electric (CASE) technologies, which may adversely affect Toyota's financial condition[23]. - Increased competition in automobile financing may lead to decreased margins and impact Toyota's financial services operations[36]. Product Development and Innovation - Toyota's future success relies on timely introduction of new, innovative, and competitively priced products to meet rapidly changing customer preferences[27]. - The company aims to enhance the value of cars through Software-Defined Vehicles (SDVs) focusing on safety and reliability, with initiatives to develop automated driving technology[106]. - The company plans to double the driving range of next-generation Battery Electric Vehicles (BEVs) compared to the current bZ4X, utilizing more efficient batteries[113]. - A new specialized unit was created in May 2023 to develop BEVs, with a focus on reducing per-unit development costs and investment in in-house production by half[115]. - The company aims to introduce ten new BEV models by 2026, targeting annual sales of 1.5 million Toyota and Lexus brand BEV units[217]. Financial Performance - In fiscal 2025, Toyota sold 9,362 thousand vehicles, generating sales revenues of ¥48,036.7 billion and a net income of ¥4,765.0 billion[69]. - Toyota's automotive segment sales increased from ¥33,776.9 billion in 2023 to ¥42,996.3 billion in 2025, representing a growth of approximately 27.3%[71]. - Toyota's financial services segment reported sales of ¥4,437.8 billion in fiscal 2025, up from ¥3,447.2 billion in 2024, marking a growth of approximately 28.8%[71]. - Toyota's automotive sales revenues reached ¥43,199.8 billion in fiscal 2025, up from ¥41,266.2 billion in fiscal 2024 and ¥33,820.0 billion in fiscal 2023, indicating a significant growth trend[172]. Environmental Commitment - Toyota aims to reduce average greenhouse gas emissions for vehicles sold worldwide by 33% or greater by 2030 and by 50% or greater by 2035 compared to 2019[101]. - The company is committed to achieving carbon neutrality by 2050 across the entire lifecycle of its vehicles[96]. - The company aims to achieve carbon neutrality at all global plants by 2035, while overhauling supply chains to procure superior quality parts at lower prices[114]. - The company is pursuing mass production of Fuel Cell Electric Vehicles (FCEVs) centered on commercial vehicles, leveraging the lightweight nature of hydrogen as an energy source[117]. Supply Chain and Production Risks - Toyota's operations are sensitive to fluctuations in foreign currency exchange rates, particularly the Japanese yen, U.S. dollar, and euro, which can impact operating results[46]. - The company relies on a limited number of suppliers for certain parts and components, which poses risks to production and delivery if supply issues arise[33]. - High prices of raw materials and strong pressure on suppliers could negatively impact Toyota's profitability, potentially leading to higher production costs for parts and components[48][49]. Regulatory and Compliance Issues - Regulatory and legal risks, including compliance with vehicle safety and environmental laws, may incur significant costs and adversely affect Toyota's financial condition[51][52]. - The company aims to lobby for the reform of the certification system by March 2025, involving collaboration with the MLIT and other automobile manufacturers[158]. - Toyota has implemented over 250 equipment investments to improve certification operations and reduce burdens on frontline staff[149]. Strategic Initiatives - Toyota Industries is planning to go private, with TMC investing 706 billion yen in non-voting preferred stock to fund the transaction[60][65]. - TMC intends to conduct a tender offer for its own shares, aiming to purchase up to 1,192,331,020 shares at a price not exceeding 2,691 yen[65]. - The retirement of 1,200,000,000 shares of treasury stock is scheduled to occur after the completion of the tender offer for its own shares[65][66]. Regional Market Performance - In fiscal 2025, 21.3% of Toyota's automobile unit sales were in Japan, 28.9% in North America, 12.5% in Europe, and 19.6% in Asia[75]. - Total vehicle unit sales in Japan for fiscal year 2025 are projected to be 1,991 thousand units, a slight decrease of 0.1% from 2024[180]. - In North America, total market sales are expected to reach 17,827 thousand units in 2025, with Toyota's sales projected at 2,572 thousand units, representing a market share of 14.4%[182]. - In Europe, Toyota's total market sales are projected to be 17,807 thousand units in 2025, with Toyota's sales at 1,217 thousand units, resulting in a market share of 6.8%[182]. - In Asia (excluding China), total market sales are expected to be 10,928 thousand units in 2025, with Toyota's sales projected at 1,434 thousand units, maintaining a market share of 13.1%[182]. Corporate Governance - The company is committed to improving governance and internal controls, conducting internal audits of 17 key subsidiaries with increased scrutiny[167]. - The TPS self-study activities led by Chairman Toyoda are aimed at improving corporate culture and operational efficiency across departments[156]. - The company has established a Governance Risk Compliance Meeting to address management issues, including certification and disaster preparedness[166].

This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the Japanese original shall prevail. TMC has positioned the sustainable growth and the stable long-term growth of corporate value as priority management issues. Believing that in carrying this out, it is essential that it both builds positive relationships with all stakeholders, including shareholders and customers as well as bu ...

Core Viewpoint - Toyota's joint venture GAC Toyota is setting a precedent for foreign brands by collaborating with local tech giants Huawei and Xiaomi, indicating a shift in the approach of foreign automakers towards local partnerships in the competitive Chinese market [4][5][10]. Group 1: Collaboration and Market Strategy - GAC Toyota's recent event showcased a collaboration between Huawei, Xiaomi, and Momenta, highlighting a significant shift in the attitude of foreign automakers towards local tech companies [4][5]. - GAC Toyota has upgraded its partnership with Huawei to a full-scale collaboration, which may encourage other joint ventures to follow suit [5][10]. - The upcoming GAC Toyota model, the Platinum Smart 7, will be the first to integrate Huawei's DriveONE motor, HarmonyOS cockpit, and Xiaomi's ecosystem, showcasing a comprehensive tech integration [7][10]. Group 2: Market Performance and Trends - In the first five months of the year, GAC Group's total sales reached 605,225 units, a year-on-year decline of 13.48%, while GAC Toyota's sales increased by nearly 3% to 273,600 units [8][9]. - The collaboration with tech companies is expected to attract both Huawei and Xiaomi's customer bases, potentially boosting GAC Group's sales performance [10][20]. - The changing consumer preferences, with a significant portion of users opting for traditional brands over new entrants, presents an opportunity for foreign automakers to regain market share [19][20]. Group 3: Industry Dynamics - The automotive industry is witnessing a transformation as foreign automakers recognize the importance of local technology partnerships to enhance their competitiveness in the Chinese market [12][16]. - The collaboration between traditional automakers and local tech firms is seen as a rapid way to improve their smart technology capabilities, which are becoming essential in the current market landscape [14][16]. - The shift in strategy among joint ventures, as exemplified by GAC Toyota, serves as a model for other foreign automakers in adapting to the evolving market demands in China [16][20].

Core Insights - Toyota's transformation in the Chinese market is marked by a shift towards local decision-making and development, enhancing responsiveness to consumer needs [2][5][41] - The introduction of new models like the bZ5 and the success of the GAC Toyota's bZ3X highlight Toyota's renewed competitiveness in the electric vehicle sector [12][23][41] - The establishment of a dedicated electric vehicle production base for Lexus in Shanghai, set to begin production in 2027, signifies Toyota's commitment to the Chinese market [6][41] Group 1 - Toyota has been perceived as slow in electrification and intelligent connectivity, but recent model launches have revitalized its brand image [1][11] - The establishment of the "China ONE R&D" system allows local engineers to lead product development, enhancing alignment with Chinese consumer preferences [5][12] - The bZ5, developed by a local team, features advanced intelligent driving and cockpit systems, positioning it competitively in the market [14][18][22] Group 2 - GAC Toyota's bZ3X achieved significant sales milestones, becoming a top-selling electric vehicle in its category shortly after launch [23][25] - The "China Chief Engineer System" empowers local engineers to define product specifications, marking a significant shift in Toyota's operational strategy [28][31] - GAC Toyota's collaboration with tech companies like Huawei and Xiaomi enhances its product offerings and ecosystem integration [30][33] Group 3 - Toyota's financial performance in FY2024 shows a revenue increase but a decline in net profit, attributed to high investments in electrification and technology [37][38] - The company plans to leverage local supply chains to reduce manufacturing costs and improve product competitiveness [43] - The strategy aims to position Toyota as a leader in the Chinese market, with a focus on local innovation and technology integration [44]

Core Viewpoint - Japanese automakers are forming alliances to develop AI and autonomous driving technologies, supported by government subsidies and policies aimed at strengthening the domestic supply chain [2][3][4]. Group 1: Government Support and Policy Direction - The Japanese government has been promoting the development of "software-defined vehicles" (SDV) and emphasizes AI-driven automotive software [3]. - Recent revisions to the "Mobility DX Strategy" include support for AI autonomous driving, focusing on AI infrastructure, talent development, and safety standards [3][4]. Group 2: Industry Collaboration - Japanese automakers are collaborating to enhance the domestic supply chain and reduce reliance on foreign technologies, particularly in critical areas like autonomous driving chips and high-precision mapping [5][6]. - The collaboration aims to share R&D resources, reduce costs, and improve efficiency by leveraging each company's strengths in sensor technology, algorithm optimization, and other areas [6][7]. Group 3: Positive Impacts of Alliances - The formation of alliances is expected to lead to significant advancements in infrastructure, such as advanced computing platforms and data centers, to meet the growing computational demands of autonomous driving systems [7]. - The collaboration will also facilitate talent development by integrating training resources and partnering with educational institutions to create specialized programs in automotive engineering and AI [7]. Group 4: Competitive Landscape - The emergence of a Japanese automaker alliance in AI and autonomous driving is likely to intensify global competition, potentially prompting European and American companies to accelerate their own R&D efforts [8]. - This shift may influence the traditional model of independent R&D among automakers, leading to more cross-industry collaborations involving parts suppliers and technology firms [8].

Core Viewpoint - Toyota and Daimler Trucks have reached a business merger agreement, aiming to complete the integration of their respective truck manufacturing subsidiaries by April 2026, which is seen as a strategic response to industry challenges such as electrification and stricter emissions regulations [2][3][6]. Group 1: Merger Details - The new holding company will be jointly owned by Toyota and Daimler Trucks, each holding 25% of the shares, consistent with a previous agreement [3]. - As part of the merger, Hino Motors will issue new shares and transfer its Hamura plant to Toyota for 150 billion yen (approximately 1 billion USD) [3]. - The merger is expected to create a new company with an annual sales volume exceeding 230,000 units, positioning it as a leader in the Asian truck market [5]. Group 2: Strategic Rationale - The merger is driven by external pressures including electrification, environmental regulations, and rising costs, making it difficult for single companies to bear the financial burden alone [6]. - Internally, the complementary strengths of Hino Motors in the Asian market and Mitsubishi Fuso's technological advantages in heavy trucks and electrification will enhance operational efficiency [6]. Group 3: Market Impact - The merger will shift the companies from regional competitors to global players, with over 60% market share in Japan and 35% in Southeast Asia [7]. - The combined entity plans to invest 20 billion USD in electric truck technology over the next five years, aiming for significant advancements in battery technology and autonomous driving [7]. Group 4: Future Plans - The new company plans to go public on the Tokyo Stock Exchange by April 2026, potentially raising 50-80 billion yen for smart factory upgrades and charging infrastructure [8]. - The merger signifies a broader trend in the commercial vehicle industry towards strategic alliances, reflecting the need for resource integration and collaboration in the face of market challenges [8][9].

Domestic News - The Cyberspace Administration of China released the annual list of online rumors, including "China's new energy product overcapacity" as one of the top ten classic rumors [2] - Hangzhou government issued the "Implementation Measures for the Innovative Application Management of Intelligent Connected Vehicles," effective from July 7, 2025, to promote the development of the intelligent connected new energy vehicle industry [3] - Shenzhen's mayor emphasized accelerating the development of artificial intelligence and low-altitude economy industries, aiming to gather resources and enhance growth [4] - Guangxi government announced a plan to support the replacement of old vehicles and 3C digital products, targeting a sales increase of over 38 billion yuan by 2025 [5] International News - Toyota held a shareholders' meeting where the vice president expressed support for the merger between Hino Motors and Mitsubishi Fuso [6] - Elon Musk urged the EU to expedite the approval of Tesla's Full Self-Driving (FSD) technology, claiming delays are detrimental to European safety [7] - Polestar announced plans to restart market expansion in France, aiming to make it one of its top three European markets [7] Corporate News - GAC Toyota announced a collaboration with Huawei, Momenta, and Xiaomi to create an AI ecosystem, launching new models equipped with advanced technologies [8] - Changan Automobile plans to invest over 200 billion yuan in emerging fields over the next decade, with goals to complete flying car test flights by the end of 2025 and humanoid robot applications by 2028 [9] - XPeng Motors officially launched the G7 model, which features L2-level intelligent driving assistance across its entire lineup [9] - GAC's first mass-produced flying car, GOVY AirCab, was unveiled in Hong Kong with a price not exceeding 1.68 million yuan, set for demonstration operations in the Guangdong-Hong Kong-Macao Greater Bay Area [10] - Neta Auto announced that employees will work from home starting June 12, with office access suspended [11] - Tengshi's Z9 model is expected to begin deliveries of a new three-spoke sports steering wheel after June 20, responding to user feedback [12]

Core Viewpoint - Multiple automotive companies are facing a "panic" due to a shortage of rare earth materials, which are critical for automotive production, particularly in electric vehicles [1][2][4]. Group 1: Impact on Automotive Production - Suzuki has temporarily halted operations on some production lines in Japan due to delays in receiving rare earth component shipments from China, affecting automotive electronic systems and engine parts [1]. - The Indian automotive industry is at risk, with major manufacturers like Tata, Maruti Suzuki, and Mahindra having only three days' worth of rare earth magnet inventory left, potentially leading to widespread production halts [2]. - Ford has also paused production of its Explorer SUV due to similar rare earth shortages [2]. Group 2: Export Control Measures - The Chinese Ministry of Commerce announced export control measures on seven types of rare earth materials, effective from April 4, which has led to significant delays in obtaining export licenses for these materials [1][3]. - Only 25% of the rare earth export license applications submitted by European component manufacturers have been approved since April, causing production delays and temporary shutdowns in some European automotive companies [2]. Group 3: Importance of Rare Earth Elements - Rare earth elements play a crucial role in automotive manufacturing, especially in electric vehicles, where materials like neodymium-iron-boron significantly enhance power density, acceleration, and range [4][5]. - Each pure electric vehicle consumes 5 to 10 kg of neodymium-iron-boron, while plug-in hybrid vehicles consume 2 to 3 kg [4]. Group 4: Supply Chain Adjustments - In response to the rare earth crisis, multinational automotive companies may consider adjusting their supply chains to produce rare earth-related components in China to leverage local supply chain advantages [6]. - Companies like Tesla, Ford, and Toyota are accelerating the development of technologies to reduce reliance on rare earth magnets, with Toyota working on "rare earth-free motors" [6]. Group 5: Strategic Cooperation and Inventory Management - Experts suggest that multinational companies should maintain strategic cooperation with China rather than rush to restructure supply chains, which could incur higher costs [7]. - Increasing inventory and optimizing supply chain management for raw materials are recommended strategies to mitigate the impact of such crises [7].