Core Viewpoint - Toyota is increasing the prices of automotive parts by 10%-15% to alleviate cost pressures faced by suppliers and ensure supply chain stability [2][3][4] Group 1: Reasons for Price Increase - The price increase is primarily due to rising raw material costs, particularly for steel, plastics, and chips, as well as high domestic energy costs in Japan [2][3] - Labor costs are also a significant factor contributing to the need for price adjustments [2] - The operational pressure on automotive parts suppliers has intensified, leading to increased uncertainty in parts supply [3] Group 2: Impact on Suppliers - The price adjustment is expected to benefit large suppliers like Denso and Aisin, improving their profit margins [3] - Approximately 12% of small and medium-sized suppliers may still struggle to fully alleviate cost pressures despite Toyota's price increase [3] - The adjustment is likely to accelerate consolidation in the parts industry [3] Group 3: Strategic Implications - The price increase reflects Toyota's commitment to its philosophy of "supply chain as core competitiveness," sharing cost pressures with suppliers [4] - Over 60,000 suppliers globally will benefit from this price adjustment, with 35% being small suppliers in Japan [4] - Rising energy costs have led to an annual increase of over 15% in energy expenditures for Japanese parts suppliers, exacerbated by fluctuations in the yen [4] Group 4: Future Directions - Toyota's strategy includes maintaining supply chain stability while actively investing in next-generation technologies, such as solid-state batteries expected to be mass-produced by 2027 [5] - The company has seen a 139% year-on-year increase in sales of plug-in hybrid models in Europe, attributed to its product strategy of "reasonable range + stable supply" [5] - Toyota's supply chain disruption risk is reported to be 40% lower than the industry average, thanks to its unique supplier relationship management [5] Group 5: Broader Market Context - Starting July 1, Toyota will raise prices for most models sold in the U.S. by an average of $270, with Lexus models increasing by an average of $208 [7] - The increase in related fees charged by Toyota dealers in the U.S. reflects the broader trend of rising costs [7] - While the price increases aim to stabilize the supply chain, there are concerns that excessive price hikes could impact market competitiveness [8]