Toyota(TM)2024-06-25 10:56Global Automotive Market and Sales Performance - Toyota sold 9,443 thousand vehicles in fiscal 2024, with sales revenues of ¥45,095.3 billion and net income of ¥5,071.4 billion[43] - 21.1% of Toyota's automobile unit sales were in Japan, 29.8% in North America, 12.6% in Europe, and 19.1% in Asia during fiscal 2024[47] - The global automotive market expanded by 9% year-over-year in 2023, driven by pent-up demand and eased semiconductor supply constraints[49] - Toyota estimates annual worldwide vehicle sales totaled approximately 89 million units in 2023[48] - In fiscal 2024, Toyota's sales in North America reached ¥17,624,268 million, Europe ¥5,503,738 million, and Asia ¥7,604,269 million[46] - Toyota's automotive sales revenue reached ¥41,266.2 billion in fiscal 2024, up from ¥33,820.0 billion in fiscal 2023 and ¥28,605.7 billion in fiscal 2022[115] - Toyota's total vehicle unit sales increased from 8,230 thousand units in 2022 to 9,443 thousand units in 2024, with North America being the largest market at 29.8% of total sales in 2024[122] - In Japan, Toyota's market share (excluding mini-vehicles) remained stable at 51.1% in 2022 and 2023, and increased to 51.8% in 2024[124][125] - Toyota's North American retail sales decreased from 2,681 thousand units in 2021 to 2,617 thousand units in 2023, with market share declining from 15.0% to 13.9%[124] - In Europe, Toyota's retail sales increased from 1,076 thousand units in 2021 to 1,174 thousand units in 2023, with market share fluctuating between 6.4% and 7.3%[124] - Toyota's vehicle production in Japan increased from 3,738 thousand units in 2022 to 4,042 thousand units in 2024, maintaining its position as the largest production base[138] - In China, Toyota's vehicle sales decreased slightly from 1.94 million units in 2022 to 1.90 million units in 2023, with a market share of 8.4% in the domestically produced passenger vehicle market[133] - Toyota's production in Asia increased significantly from 1,499 thousand units in 2022 to 1,876 thousand units in 2024, reflecting the growing importance of the region[138] Regional Market Performance - The automotive market in China grew to approximately 26.00 million units in 2023, representing 30% of the global market share[51] - Toyota expects the automotive market to grow in the medium- to long-term, driven by growth in China and other emerging countries[52] - Toyota's distribution network in Japan consists of 236 dealers operating approximately 4.5 thousand sales and service outlets, with a focus on improving showroom and online sales[140][141] - The Lexus brand in Japan is distributed through a dedicated network of 187 new-vehicle sales outlets, enhancing Toyota's competitiveness in the luxury automotive market[142] Financial Performance and Operations - Toyota's automotive operations generated ¥41,080,731 million in sales, financial services ¥3,447,195 million, and all other operations ¥567,399 million in fiscal 2024[44] - The company operates through 577 consolidated subsidiaries and 165 associates and joint ventures as of March 31, 2024[41] - Toyota's financial services revenue grew to ¥3,484.1 billion in fiscal 2024, with a 30% share of financing for new Toyota and Lexus vehicle sales[214] - Finance receivables for Toyota's dealer and customer financing operations increased by 27.9% to ¥31,694.3 billion as of March 31, 2024[217] - Approximately 40% of Toyota's unit sales in the U.S. during fiscal 2024 included a finance or lease arrangement with Toyota[218] - Toyota Finance Corporation has 16.2 million credit card holders as of March 31, 2024[226] - Sales revenues from Toyota's non-automotive business activities totaled ¥1,368.1 billion in fiscal 2024[227] Environmental and Sustainability Goals - Toyota aims to reduce average CO2 emissions for vehicles sold worldwide by 33% or greater by 2030 and by 50% or greater by 2035 compared to 2019[65] - Toyota targets carbon neutrality at all global plants by 2035 and aims to reduce BEV production line processes by half through TPS improvements[73] - Toyota will increase battery efficiency for PHEVs to extend EV-mode driving range beyond 200 km, repositioning them as "the practical BEV"[74] - Toyota plans to mass-produce FCEVs, focusing on commercial vehicles, and has started basic research on hydrogen engines for heavy-duty commercial vehicles[75] - Toyota is conducting demonstration experiments in Woven City for CO2-free hydrogen supply chains and city-integrated autonomous mobility, with plans for real-city implementation from 2025[70] - Toyota is collaborating with partners in Thailand to address regional issues like traffic congestion, air pollution, and road accidents using electrification and connected technologies[84] - Toyota incurred significant costs to comply with environmental and safety regulations, viewing leadership in environmental protection as a competitive factor[228] Electric and Hydrogen Vehicle Development - Toyota plans to release next-generation BEVs in 2026 with double the driving range of the current bZ4X, using more efficient batteries[72] - Toyota's new BEV development unit, created in May 2023, has halved per-unit development costs and investment in in-house production compared to pre-TNGA levels[74] - Toyota will expand its BEV lineup in developed countries, including a three-row SUV in the U.S. in 2025 and locally developed models like the bZ3C and bZ3X in China[82] - Toyota aims to achieve cost reductions and continuous improvement (Kaizen) by leveraging TPS strengths, enhancing investment capacity for BEV and mobility growth[83] - Toyota plans to expand its battery production capacity in North America, aiming to produce over 30GWh annually for BEV/PHEV batteries by adding eight new production lines[128] - Toyota plans to increase annual BEV sales to 3.5 million units by 2030, up from the previous target of 2 million units[147] - Toyota will invest up to 730 billion yen in Japan and the US for BEV battery production, aiming for a capacity increase of up to 40 GWh[148] - Toyota aims to introduce 10 new BEV models by 2026 and achieve annual sales of 1.5 million BEV units by the same year[148] - Next-generation BEVs planned for 2026 will double the driving range of the current bZ4X using more efficient batteries[148] - Toyota plans to invest approximately 5 trillion yen in BEV production, battery plants, and R&D through 2030[155] - The company aims to achieve a cruising range of 1,000 km for next-generation BEVs by 2026, with a 20% cost reduction and quick charge time of 20 minutes or less[156] - Toyota is developing low-cost liquid lithium batteries with a 20% increase in cruising range and 40% cost reduction compared to the current bZ4X, targeting commercialization in 2026-2027[157] - The high-performance version of the bipolar lithium-ion battery aims for a 10% increase in cruising range and a 10% cost reduction, with commercialization expected in 2027-2028[161] - Toyota is advancing the development of all-solid-state batteries, targeting commercialization in 2027-2028, with a partnership with Idemitsu Kosan Co., Ltd. for mass production[163] - The company expects to receive offers for 100,000 units of fuel cells annually by 2030, primarily for commercial vehicles[164] - Toyota aims to reduce manufacturing costs by 25% by unifying hydrogen tank standards for large commercial vehicles across Europe, the U.S., and Japan[171] - Trials of a new hydrogen electrolyzer developed by Toyota began in March 2023 at the DENSO Fukushima plant[172] - Toyota's hydrogen engine-equipped Corolla completed the Fuji 24 Hours Race in May 2023 after design improvements to address safety concerns[177] - The number of partners collaborating with Toyota on hydrogen engine development grew from 8 companies in May 2021 to 45 companies by the end of the 2023 season[178] Safety and Autonomous Driving Technologies - Toyota Safety Sense has been installed in more than 46 million vehicles globally as of March 2024 and is available in 144 countries and regions[188] - Toyota's HELPNET emergency reporting system automatically contacts operators when airbags deploy, enabling rapid emergency response[191] - Toyota's Advanced Drive system, equipped in Lexus LS and Mirai models, assists driving on expressways and supports Over-the-Air upgrades[194] - Commercial Japan Partnership Technologies (CJPT) was established in April 2021 to accelerate CASE implementation and address transportation industry challenges[197] - Toyota is implementing 580 electrified vehicles, including fuel cell electric trucks and BEV trucks, in Fukushima Prefecture and Tokyo for large-scale logistics[201] - Fukuoka City is implementing FCEVs for garbage compactor trucks, ambulances, and other daily-use vehicles, supported by local hydrogen stations[202] - AEON's Minami-Osaka distribution center demonstration project improved truck loading efficiency and expanded to Kyushu region, confirming certain improvements[203] - CJPT-Asia established to promote energy, data, and mobility solutions in Thailand, including renewable energy use and hydrogen production from biogas[204][205] - Woven City project to commence limited demonstration testing in 2025, focusing on automated driving, MaaS, personal mobility, robotics, smart homes, and AI[206][212] Regulatory Compliance and Governance - The company is addressing certification irregularities at subsidiaries Daihatsu, Hino, and Toyota Industries, with over 50 Toyota members joining Daihatsu to review regulations and conduct retests[99][100] - Toyota plans to outsource compact car development and certification to ensure compliance with laws and regulations, shifting responsibility from Daihatsu to Toyota[100] - The company is prioritizing the creation of "reserve capacity" in production and development, reducing maximum daily production from 14,500 units to improve workplace communication and safety[107] - Toyota is expanding its auditing of subsidiaries, focusing on corporate culture, workplace environment, and legal compliance, while also implementing self-inspection tools[111] - Toyota is strengthening internal control and risk management at subsidiaries, including the establishment of a new Governance, Risk, and Compliance Management Division at Daihatsu[108] - Japan elected as vice chair of WP.29 in November 2022 to lead international harmonization of vehicle regulations[231] - The EPA finalized Tier 3 tailpipe emission standards for passenger vehicles, light-duty trucks, and some heavy-duty vehicles, effective from model years 2017 to 2025, aligning with California's standards[233] - Tier 3 standards require reductions in gasoline's sulfur content starting in model year 2017[233] - The EPA announced Tier 4 emission standards for passenger vehicles, light-duty trucks, and some heavy-duty vehicles, effective from model year 2027 through 2032[234] - California's Advanced Clean Cars (ACC) program, established under a 2013 EPA waiver, includes LEV III regulations reducing smog-causing pollutants and greenhouse gases for model years 2015 to 2025[235][236] - LEV III regulations cover evaporative emissions and guaranteed useful life standards for passenger cars and light-duty trucks[236] Product Development and Innovation - Toyota is working towards making all its vehicles connected, leveraging big data to create new value and reform businesses[44] - Toyota is expanding its multi-pathway strategy, focusing on hybrid vehicles, BEVs (Battery Electric Vehicles), and hydrogen mobility, with BEVs being developed as "software-defined vehicles" (SDVs)[89] - The company is developing a new car architecture for BEVs, including compact and lightweight power units, aiming to integrate mobility values with social systems based on energy and data[89][90] - Toyota is accelerating R&D efforts to strengthen future value creation, with a focus on generative AI and automated driving technologies[90][91] - Toyota launched the all-new Crown in fiscal 2023, offering four variations to meet diverse customer needs, and plans to introduce new PHEVs (Plug-in Hybrid Electric Vehicles) in the future[118][119]