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UNIVERSITY OF MUMBAI
PROJECT REPORT
ON
MARKETING STRATEGIES & PLANS OF TOYOTA MOTORS
BY
MR. JITEN H MENGHANI
ROLL NO 32
M.COM. (PART-1)
ACADEMIC YEAR 2013-2014
PROJECT GUIDE
PROF. MRS N.A. NERURKAR
PARLE TILAK VIDYALAYA ASSOCIATION‟S
M.L.DAHANUKAR COLLEGE OF COMMERCE
DIXIT ROAD, VILE PARLE (EAST)
MUMBAI-400 057

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DECLARATION
I, MR. JITEN H MENGHANI OF PARLE TILAK VIDYALAYA
ASSOCIATION‟S, M.L.DAHANUKAR COLLEGE OF
COMMERCE of M.COM (PART-1) (Semester-2) hereby
Declare that I have completed this project on
MARKETING STRATEGIES & PLANS OF TOYOTA MOTORS
in
The Academic year 2013-2014. The information
Submitted is true & original to the best of knowledge.
-----------------------
(Signature of student)
JITEN.H.MENGHANI

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ACKNOWLEGEMENT
To list who all have helped me is difficult because they are so
numerous and the depth is so enormous.
I would like to acknowledge the following as being idealistic
channels and fresh dimensions in the completion of this
project
I take this opportunity to thank the University of Mumbai for
giving me chance to do this project.
I would like thank my Principal, Dr. Madhavi.S.Pethe
for providing the necessary facilities required for completion of
this project.
I would also like to express my sincere gratitude towards my
project guide PROF. MRS N.A. NERURKAR whose guidance and care
made the project successful.
I would like to thank my college library, for having provided
Various reference books and magazines related to my project.
Lastly I would like to thank each & every person who directly
or indirectly helped me in completion of the project especially
my parents & peers who supported me throughout my project.

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Content
a) Introduction
b) History
c) Toyota’s Global Vision
d) Toyota’s Mission
e) Strategy: Unrelated Diversification
(Creation of ‘Toyota Motors’ from ‘Toyota Industries’)
f) Analysis
g) Toyota Industries: Sales by Business Segment (FY 2012, Consolidated Basis)
h) Logo and Branding
i) Marketing
j) Company strategy
k) Principles of Toyota
l) Worldwide presence
m) Special Feature: Toyota's Efforts in Emerging Markets
n) Innovative International Multipurpose Vehicle
o) Vehicle Production, Sales and Exports by Region
p) Toyota and Ford collaborate to build Hybrid cars
q) History of Technological Development from 1990
r) Majority-owned subsidiaries
s) SWOT ANALYSIS OF TOYOTA
t) Conclusion
u) References

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Introduction
Toyota Motor Corporate is a Japanese automotive manufacturer headquartered in Toyota, Aichi,
Japan. In 2013 the multinational corporation consisted of 333,498 employees worldwide and, as of
January 2014, is the fourteenth-largest company in the world by revenue. Toyota was the
largest automobile manufacturer in 2012 (by production). In July of that year, the company reported
the production of its 200-millionth vehicle. Toyota is the world's first automobile manufacturer to
produce more than 10 million vehicles per year. It did so in 2012 according to OICA,[4] and in
2013 according to company data. As of November 2013, Toyota was the largest listed company in
Japan by market capitalization (worth more than twice as much as 2-ranked SoftBank) and by
revenue.
The company was founded by Kiichiro Toyoda in 1937 as a spinoff from his
father's company Toyota Industries to create automobiles. Three years earlier, in 1934, while still a
department of Toyota Industries, it created its first product, the Type A engine, and, in 1936, its first
passenger car, the Toyota AA. Toyota Motor Corporation produces vehicles under 5 brands,
including the Toyota brand, Hino, Lexus, Ranz, and Scion. It also holds a 51.2% stake in Daihatsu,
a 16.66% stake in Fuji Heavy Industries, a 5.9% stake in Isuzu, and a 0.27% stake in Tesla, as well
as joint-ventures with two in China (GAC Toyota and Sichuan FAW Toyota Motor), one in India
(Toyota Kirloskar), one in the Czech Republic (TPCA), along with several "nonautomotive"
companies. TMC is part of the Toyota Group, one of the largest conglomerates in the world.

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History
1920s-1930s
Toyota was started in 1933 as a
division of Toyoda Automatic Loom
Works devoted to the production of
automobiles under the direction of the
founder's son, Kiichiro Toyoda. Its first
vehicles were the A1 passenger car and
the G1 in 1935. The Toyota Motor Co.
was established as an independent
company in 1937. In 2008, Toyota's
sales surpassed General Motors,
making Toyota number one in the
world.
In 1924, Sakichi Toyoda invented the Toyoda Model G Automatic Loom. The principle of Jidoka,
which means the machine stops itself when a problem occurs, became later a part of the Toyota
Production System. Looms
were built on a small
production line. In 1929, the
patent for the automatic loom
was sold to a British company,
generating the starting capital
for the automobile
development.
Vehicles were originally sold
under the name "Toyoda" ,
from the family name of the
company's founder, Kiichirō Toyoda. In April 1936, Toyoda's first passenger car, the Model AA,
was completed. The sales price was 3,350 yen, 400 yen cheaper than Ford or GM cars.
In September 1936, the company ran a public competition to design a new logo. Of 27,000 entries,
the winning entry was the three Japanese katakana letters for "Toyoda" in a circle. But Risaburō
Toyoda, who had married into the family and was not born with that name, preferred "Toyota"
because it took eight brush strokes (a lucky number) to write in Japanese, was visually simpler
(leaving off the diacritic at the end) and with a voiceless consonant instead of a voiced one (voiced
consonants are considered to have a "murky" or "muddy" sound compared to voiceless consonants,
which are "clear").

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Since "Toyoda" literally means
"fertile rice paddies", changing the
name also prevented the company
from being associated with old-
fashioned farming. The newly
formed word was trademarked and
the company was registered in
August 1937 as the "Toyota Motor
Company".
1940s-1950s
From September 1947, Toyota's small-sized vehicles were sold under the name "Toyopet" .The first
vehicle sold under this name was the Toyopet SA, but it also included vehicles such as the Toyopet
SB light truck, Toyopet Stoutlight truck, Toyopet Crown, Toyopet Master, and the Toyopet Corona.
The word "Toyopet (Japanese article)" was a nickname given to the Toyota SA due to its small size,
as the result of a naming contest the Toyota Company organized in 1947. However, when Toyota
eventually entered the American market in 1957 with the Crown, the name was not well received
due to connotations of toys and
pets. The name was soon dropped
for the American market, but
continued in other markets until the
mid-1960s.
1960s-1970s
By the early 1960s, the US had
begun placing stiff import tariffs on
certain vehicles. The chicken tax of
1964 placed a 25% tax on
imported light trucks. In response to
the tariff, Toyota, Nissan Motor
Co. and Honda Motor Co. began
building plants in the US by the
early 1980s.
1980s
Toyota received its first Japanese
Quality Control Award at the start of
the 1980s and began participating in
a wide variety of motorsports. Due
to the 1973 oil crisis, consumers in the lucrative US market began turning to small cars with better

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fuel economy. American car manufacturers
had considered small economy cars to be
an "entry level" product, and their small
vehicles employed a low level of quality to
keep the price low. In 1982, the Toyota
Motor Company and Toyota Motor Sales
merged into one company, the Toyota
Motor Corporation. Two years later,
Toyota entered into a joint venture with General Motors called the New United Motor
Manufacturing, Inc, NUMMI, operating an automobile-manufacturing plant in Fremont, California.
The factory was an old General Motors plant that had been closed for two years. Toyota then started
to establish new brands at the end of the 1980s, with the launch of their luxury division Lexus in
1989.
1990s
In the 1990s, Toyota began to branch out from
producing mostly compact cars by adding many
larger and more luxurious vehicles to its lineup,
including a full-sized pickup, the T100 (and later
the Tundra); several lines of SUVs; a sport
version of theCamry, known as the Camry
Solara; and the Scion brand, a group of several
affordable, yet sporty, automobiles targeted specifically to young adults. Toyota also began
production of the world's best-selling hybrid car, the Prius, in 1997.
With a major presence in Europe, due to the success of Toyota Team Europe, the corporation
decided to set up Toyota Motor Europe Marketing and Engineering, TMME, to help market
vehicles in the continent. Two years later, Toyota set up a base in the United Kingdom, TMUK, as
the company's cars had become very
popular among British drivers. Bases
in Indiana, Virginia, and Tianjin were also
set up. In 1999, the company decided to list
itself on the New York and London Stock
Exchanges.
2000s
In 2001, Toyota's Toyo Trust and
Banking merged with two other banks to
form UFJ Bank, which was accused of
corruption by Japan's government for
making bad loans to alleged Yakuza crime

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syndicates with executives
accused of blocking Financial
Service Agency inspections. The
UFJ was listed among Fortune
Magazine's largest money-losing
corporations in the world, with
Toyota's chairman serving as a
director. At the time, the UFJ was
one of the largest shareholders of
Toyota. As a result of Japan's
banking crisis, UFJ merged with
the Bank of Tokyo-Mitsubishi to become the Mitsubishi UFJ Financial Group.
In 2002, Toyota managed to enter a Formula One works team and establish joint ventures with
French motoring companies Citroën and Peugeot a year after Toyota started producing cars in
France.
Toyota ranked eighth on Forbes
2000 list of the world's leading
companies for the year 2005 but
slid to 55 for 2011. The company
was number one in global
automobile sales for the first
quarter of 2008.
In 2007, Toyota released an
update of its full-size truck,
the Tundra, produced in two
American factories, one in Texas
and one in Indiana. "Motor Trend" named the Tundra "Truck of the Year", and the 2007 Toyota
Camry "Car of the Year" for
2007.
2010s
From November 2009 through
2010, Toyota recalled more than
9 million cars and trucks
worldwide in several recall
campaigns, and briefly halted
production and sales. Toyota
initiated the recalls, the first two

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with the assistance of the U.S.National Highway Traffic Safety
Administration (NHTSA), after reports that several vehicles experienced unintended acceleration.
In 2011, Toyota, along with large parts of the Japanese automotive industry, suffered from a series
of natural disasters. The 2011 Tōhoku earthquake and tsunami led to a severe disruption of the
supplier base and a drop in production and exports. Severe flooding during the
2011 monsoon season in Thailand affected Japanese automakers that had chosen Thailand as a
production base. Toyota estimated to have lost production of 150,000 units to the tsunami and
production of 240,000 units to the floods.
In October 2012, Toyota announced a recall of 7.43 million vehicles worldwide to fix
malfunctioning power window switches, the largest recall since that of Ford Motor Company in
1996. The move came after a series of recalls between 2009 and 2011 in which it pulled back
around 10 million recalls amidst claims of faulty mechanics.

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Analysis of Vision & Mission Statement VISION
A vision statement for a company or organization focuses on the potential inherent in the
company's future, or what they intend to be. It contains references to how the company intends to
make that future into a reality, the vision statement is simply a description of the “what,”meaning,
what the company intends to become.
Toyota’s Global Vision
“Toyota will lead the way to future of mobility, enriching lives around the world with the safest and
the most responsible ways of moving people.
Through our commitment to quality, and respect to the planet, we aim to exceed expectations and
be rewarded with a smile.
We will meet our challenging goals by engaging the talents and passion of people, who believe
there is always a better way.”
Future of Mobility Commitment to Quality
Enriching lives around the World Constant Innovation

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The Statement gives voice to who they are as a global enterprise, the values they embody, an the
good that they are striving to accomplish. Designed to inspire all Team Members to even greater
things, the Statement emphasizes Toyota's commitment to quality, innovation and respect for the
planet. At its heart is this signature statement: We aim to exceed expectations and be rewarded with
a smile.
One aspect of the vision is “respect to the planet”
The process for developing an Environment Action Process begins with the parent company in
Japan, Toyota Motor Corporation (TMC). Every five years, TMC develops a global five-year
environmental action plan (EAP).
Eg The ingenuity and persistence of team members at their Cambridge, Ontario plant, have found a
way to reduce annual water consumption of water by more than 13.2 million gallons (50,000 cubic
meters).
This has made their plant in Princeton, Indiana, honor as one of only two North American
recipients of the Water Champion award.

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MISSION
A mission statement is a statement of the purpose of a company, organization or person, its reason
for existing. The mission statement should guide the actions of the organization, spell out its overall
goal, provide a path, and guide decision-making. It provides "the framework or context within
which the company's strategies are formulated.
Toyota’s Mission
“To provide safe & sound journey. Toyota is developing various new technologies from the
perspective of energy saving and diversifying energy sources. Environment has been first and most
important issue in priorities of Toyota and working toward creating a prosperous society and clean
world.”
 The mission statement of Toyota Indus Motors Company Ltd, defines the organization's purpose
and primary objectives. Its prime function is “to provide a safe and sound journey.”
 It provides a reason for being, which is one of the most important aspect of a mission statement.
The mission statement is clear and concise and provides focus and a sense of direction.
 Toyota‟s focus as mentioned in the mission statement is to develop new technologies and to
conserve energy. They also seek to be environment friendly.

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Strategy: Unrelated Diversification
(Creation of ‘Toyota Motors’ from ‘Toyota Industries’)
Background
 In 1933, Toyoda Automatic Loom Works, Ltd created a new division devoted to the production
of automobiles under the direction of the founder's son, Kiichiro Toyoda.
 Toyoda Automatic Loom Works, Ltd was encouraged to develop automobile production by the
Japanese government, which needed domestic vehicle production partly due to the worldwide
money shortage and partly due to the war with China
 Toyota Motor Co. was established as an independent and separate company in 1937.
 The company was eventually founded by Kiichiro Toyoda in 1937 as a spinoff from his father's
company Toyota Industries to create automobiles.
 Toyota currently owns and operates Lexus and Scion brands and has a majority shareholding
stake in Daihatsu Motors, and minority shareholdings in Fuji Heavy Industries Isuzu Motors, and
Yamaha Motors.
 Toyota Industries has promoted diversification and expanded the scope of its business domains
to include textile machinery, automobiles (vehicles, engines, car airconditioning compressors, etc.),
and materials handling equipment, electronics, and logistics solutions.
 In 1983, Toyota Financial Services became a new subsidiary of Toyota Motor Corporation in
Japan. The Toyota Financial Services brand identity was officially launched in December 1999.
 TFS is a service mark that acts as an umbrella brand name used to market the products of
Toyota Motor Credit Corporation (TMCC) and Toyota Motor Insurance Services, Inc.(TMIS).
TMCC was incorporated in California on October 4, 1982, and commenced operations in May 1983
by approving a finance contract for a used Toyota Corolla in Denver, Colorado. TFS provides retail
and wholesale financing, retail leasing, vehicle protection plans and certain other financial services
to authorized Toyota, Lexus and Scion dealers, Toyota forklift and Hino dealers as well as Toyota
Material Handling, U.S.A. dealers, affiliates, and their customers in the United States.

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Analysis Toyota Industries: Sales by Business Segment
(FY 2012, Consolidated Basis)
"FY 2012" refers to the fiscal year ended March 31, 2012, and other fiscal years are referred to in a
corresponding manner.
1. Why is it unrelated diversification?
 At the time of establishment of Toyota Motor Company, present day „Toyota Industries‟ was in
the business of making handlooms.
 This can be seen as a „Conglomerate Diversification‟ as Toyota expanded its
scope from Handloom Industry to Automobile Industry.
2. Reason behind Diversification
 Sakichi Toyoda, a prolific inventor, created the Toyoda Automatic Loom Company based on his
groundbreaking designs, one of which was licensed to a British concern for 1 million yen.
 This money was used to help found Toyota Motor Company, which was supported by the
Japanese government partly because of the military applications.
 The Japanese relied on foreign trucks in the war in Manchuria, but with the Depression, money
was scarce. Domestic production would reduce costs, provide jobs, and make the country more
independent.
 By 1936, just after the first successful Toyoda vehicles were produced, Japan demanded that any
automakers selling in the country needed to have a majority of stockholders from Japan, along with
all officers, and stopped nearly all imports.
3. Benefits from Diversification
 Less Competition: The Japanese government passed a law forcing the market leaders, General
Motors and Ford, to leave Japan. Also, failure of the Government to encourage the large Japanese

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conglomerates (zaibatsu) to enter the industry, made the government provide
incentives for Toyota to do so, making it the only licensed car manufacturer alongside Nissan in
1930s.
 Portfolio Diversification: Toyota would be making vehicles alongside handlooms, which would
help them broaden their scope & grow as a Group. As of today Toyota is the largest producers of
carmakers, having dethroned General Motors again!
 The Japanese company sold 9.7 million cars and trucks worldwide in 2012, although it's still
counting. GM sold 9.29 million.
 Toyota Motors ranked No.8 in the Fortune 500 list in the year 2011.
 Toyota Financial Services has constructed a global network that covers approximately 90% of
the markets in which Toyota sells its vehicles. Mainly concentrated on auto loans, leases and
Toyota dealer floor plan requirements, TFS provides auto sales financing to approximately 5.4
million customers. Thus effectively helping in making their own cars more affordable to their
potential consumers all around the world. Again being a strategy that helps them a stronger
competitor in the market.

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Logo and Branding
In 1936, Toyota entered the passenger car market with its Model AA and held a competition to
establish a new logo emphasizing speed for its new product line. After receiving 27,000 entries, one
was selected that additionally resulted in a change of its moniker to "Toyota" from the family name
"Toyoda". The new name was believed to sound better, and its eight-stroke count in the Japanese
language was associated with wealth and good fortune. The original logo no longer is found on its
vehicles, but remains the corporate emblem used in Japan.Still, no guidelines existed for the use of
the brand name, "TOYOTA", which was used throughout most of the world, which led to
inconsistencies in its worldwide marketing campaigns.To remedy this, Toyota introduced a new
worldwide logo in October 1989 to commemorate the 50th year of the company, and to differentiate
it from the newly released luxury Lexus brand. The logo made its debut on the 1989 Toyota Celsior
and quickly gained worldwide recognition. The three ovals in the new logo combine to form the
letter "T", which stands for Toyota. The overlapping of the two perpendicular ovals inside the larger
oval represent the mutually beneficial relationship and trust between the customer and the company,
while the larger oval surrounding both of these inner ovals represents the "global expansion of
Toyota's technology and unlimited potential for the future." The new logo started appearing on all
printed material, advertisements, dealer signage, and the vehicles themselves in 1990.In
predominantly Chinese-speaking countries or regions using traditional Chinese characters, e.g.
Hong Kong and Taiwan, Toyota is known as "豊田". In predominantly Chinese-speaking countries
using simplified Chinese characters (e.g. China and Singapore), Toyota is known as
"丰田" (pronounced as "Fēngtián" in Mandarin Chinese and "Hɔ ng Tshan" in Minnanese). These are the
same characters as the founding family's name "Toyoda" in Japanese, which translate to "fertile rice
paddies" in the Chinese language, as well.

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Marketing
Toyota's marketing efforts in North America have focused on emphasizing the positive experiences
of ownership and vehicle quality. The ownership experience has been targeted in slogans such as
"You asked for it! You got it!" (1975–1979), "Oh, what a feeling!" (1979 – September 1985, in the
US), "Who could ask for anything more?" (September 1985 – 1989), "I love what you do for me,
Toyota!" (1989–1997), "Everyday" (1997–2001)", "Get the feeling!" (2001–2004), "Moving
Forward" (2004–2012), and "Let's Go Places" (2012–present).
Japan
In Japan, Toyota currently maintains separate dealership sales channels. The first sales channel
established in 1946 called "Toyota Store" sells large luxury sedans such as the Toyota Century, and
the Toyota Crown. In 1955 the "Toyopet Store" arrived, originally established to sell the Toyota
Corona and the Toyopet ToyoAce truck. (Toyota's five channel dealerships in Japan chronology in
Japanese.) Toyota also operated a
commercial dealership called Toyota
Diesel Shop from 1957 until 1988,
that sold various commercial
platform trucks, buses, and forklifts,
such as the Toyota Dyna and
the Toyota Coaster. Hino products
were sold at specific Hino locations,
and shared at Toyota Diesel Store
locations after Toyota acquired the
company in 1967. Starting in 1980, the Diesel Shop also sold the Starlet, Corolla, Corona, Vista and
Crown installed with diesel engines. When the Toyota Diesel Store was disbanded, commercial
products were divided between Toyota Store and Toyopet Store locations.

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Company Strategy
Toyota's management philosophy has evolved from the company's origins and has been reflected in
the terms "Lean Manufacturing" and Just In Time Production, which it was instrumental in
developing. Toyota's managerial values and business methods are known collectively as the Toyota
Way.In April 2001, Toyota adopted the "Toyota Way 2001", an expression of values and conduct
guidelines that all Toyota employees should embrace. Under the two headings of Respect for
People and Continuous Improvement, Toyota summarizes its values and conduct guidelines with
the following five principles:
Challenge
Kaizen (improvement)
Genchi genbutsu (go and see)
Respect
Teamwork
According to external observers, the Toyota Way has four components:
1. Long-term thinking as a basis for management decisions
2. A process for problem-solving
3. Adding value to the organization by developing its people
4. Recognizing that continuously solving root problems drives organizational learning
The Toyota Way incorporates the Toyota Production System.
Operations
Toyota has long been recognized as an industry leader in manufacturing and production. Three
stories of its origin have been found, one that they studied Piggly-Wiggly's just-in-time distribution
system, one that they followed the writings of W. Edwards Deming, and one that they were given
the principles from a WWII US government training program (Training Within
Industry). Regardless of the origin, the principles described by Toyota in its management
philosophy, The Toyota Way, are: Challenge, Kaizen (improvement), Genchi Genbutsu (go and
see), Respect, and Teamwork.

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Principles of Toyota
Some more Principles:
1. Base your management decisions on a long-term philosophy, even at the expense of short-
term goals
2. Create continuous process flow to bring problems to the surface
3. Use "pull" systems to avoid overproduction
4. Level out the workload
5. Build a culture of stopping to fix problems, to get quality right the first time
6. Standardized tasks are the foundation for continuous improvement and employee
empowerment
7. Use visual control so no problems are hidden
8. Use only reliable, thoroughly tested technology that serves your people and processes
9. Grow leaders who thoroughly understand the work, live the philosophy, and teach it to
others
10.Develop exceptional people and teams who follow your company‟s philosophy
11.Respect your extended network of partners and suppliers by challenging them and helping
them improve
12.Go and see for yourself to thoroughly understand the situation (genchi genbutsu)
13.Make decisions slowly by consensus, thoroughly considering all options; implement
decisions rapidly
14.Become a learning organization through relentless reflection and continuous improvement
(kaizen).

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Worldwide Presence
Toyota has grown to a large multinational corporation from where it started and expanded to
different worldwide markets and countries. It displaced GM and became the world's largest
automobile maker for the year 2008. It held the title of the most profitable automobile maker
(US$11 billion in 2006) along with increasing sales in, among other countries, the United States.
The world headquarters of Toyota are located in its home country in Toyota City, Japan. Its
subsidiary, Toyota Financial Services sells financing and participates in other lines of business.
Toyota brands include Scion and Lexus and the corporation is part of the Toyota Group. Toyota
also owns 51% of Daihatsu, and 16.7% of Fuji Heavy Industries, which manufactures
Subaru vehicles. They also acquired 5.9% of Isuzu Motors Ltd. on November 7, 2006 and will be
introducing Isuzu diesel technology into their products.
Toyota has introduced new technologies including one of the first mass-produced hybrid gasoline-
electric vehicles, of which it says it has sold 2 million globally as of 2010, Advanced Parking
Guidance System (automatic parking), a four-speed electronically controlled automatic with buttons
for power and economy shifting, and an eight-speed automatic transmission. Toyota, and Toyota-
produced Lexus and Scion automobiles, consistently rank near the top in certain quality and
reliability surveys, primarily J.D. Power and Consumer Reportsalthough they led in automobile
recalls for the first time in 2009.
In 2005, Toyota, combined with its half-owned subsidiary Daihatsu Motor Company, produced
8.54 million vehicles, about 500,000 fewer than the number produced by GM that year. Toyota has
a large market share in the United States, but a small market share in Europe. Its also sells vehicles
in Africa and is a market leader in Australia. Due to its Daihatsu subsidiary it has significant market
shares in several fast-growing Southeast Asian countries.

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According to the 2008 Fortune Global 500, Toyota is the fifth largest company in the
world. Since the recession of 2001, it has gained market share in the United States. Toyota's market
share struggles in Europe where its Lexus brand has three tenths of one percent market share,
compared to nearly two percent market share as the US luxury segment leader.
In the first three months of 2007, Toyota together with its half-owned subsidiary Daihatsu reported
number one sales of 2.348 million units. Toyota's brand sales had risen 9.2% largely on demand for
Corolla and Camry sedans. The difference in performance was largely attributed to surging demand
for fuel-efficient vehicles. In November 2006, Toyota Motor Manufacturing Texas added a facility
in San Antonio. Toyota has experienced quality problems and was reprimanded by the government
in Japan for its recall practices. In 2007, Toyota maintained over 16% of the US market share and
was listed second only to GM in terms of volume. Toyota Century Royal is the official state car of
the Japanese imperial family, namely for the current Emperor of Japan.
Toyota was hit by the global financial crisis of 2008 as it was forced in December 2008 to forecast
its first annual loss in 70 years. In January 2009 it announced the closure of all of its Japanese plants
for 11 days to reduce output and stocks of unsold vehicles.
Akio Toyoda became the new president and CEO of the company on June 23, 2009 by replacing
Katsuaki Watanabe who became the new vice chairman by replacing Katsuhiro Nakagawa.
Toyota has factories in most parts of the world, manufacturing or assembling vehicles for local
markets. Toyota has manufacturing or assembly plants in Japan, Australia, India, Sri Lanka,
Canada, Indonesia, Poland, South Africa, Turkey, Colombia, the United Kingdom, the United
States, France, Brazil, Portugal, and more recently, Argentina, Czech Republic, Mexico, Malaysia,
Thailand, Pakistan, Egypt, China, Vietnam, Venezuela, the Philippines, and Russia.
Toyota's net revenue by geographical regions for the year ended March 31, 2007.
Geographic region Total sales ( Yen in millions)
Japan 8,152,884
North America 8,771,495
Europe 3,346,013
Asia 1,969,957
Others 1,707,742
In 2002, Toyota initiated the "Innovative International Multi-purpose vehicle" project (IMV) to
optimize global manufacturing and supply systems for pickup trucks and multipurpose vehicles, and
to satisfy market demand in more than 140 countries worldwide. IMV called for diesel engines to
be made in Thailand, gasoline engines in Indonesia and manual transmissions in India and the
Philippines, for supply to the countries charged with vehicle production. For vehicle assembly,
Toyota would use plants in Thailand, Indonesia, Argentina and South Africa. These four main IMV
production and export bases supply Asia, Europe, Africa, Oceania, Latin America and the Middle
East with three IMV vehicles: The Toyota Hilux (Vigo), the Fortuner, and the Toyota Innova.

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Special Feature: Toyota's Efforts in Emerging Markets
We will conduct business that is strongly rooted in the countries in which we operate by adapting to
local needs and pushing for 100% localization.
Toyota‟s emerging market sales ratio reached 45% in 2011, an increase of 10% in the three years
since we achieved 35% in 2008. The Toyota Global Vision calls for an emerging-market sales ratio
of 50% by 2015, and we are striving to hit this target ahead of schedule by strengthening our global
supply system in emerging markets and increasing localization, with Asia as an important base. In
addition, we will actively release compact vehicles specifically designed for emerging markets.
The Shift to Emerging Markets and Toyota's Strategy
Making Cars that Meet National and Local Needs
Expanding Production in Emerging Markets - 3.1 million vehicles by 2013
Toyota's overseas business has evolved through three stages, from making in Japan and exporting,
to producing in regions where demand exists and then to the current stage whereby Toyota has an
efficient global production and supply.
Global production and supply are supported
in the emerging markets, where we have
been increasing investment so as to boost
production capacity. We began production of
the Fortuna in India in 2009, followed by the
diesel Corolla and the Etios in 2010, and
expanded investment in factories
accordingly. In Brazil, production of the
Corolla FFV began in 2007, and sales have
steadily increased since then. We plan to start
production at a new compact vehicle plant in
Brazil in the latter half of 2012. As a result of
such efforts, production capacity in emerging markets is forecast to reach approximately 3.1 million
vehicles in 2013, which is the same level as that in Japan and represents a great increase over the
540,000 vehicles output in 2000.

24. Page | 24
Innovative International Multipurpose Vehicle
The IMV
specially
developed in 2004 for introduction in over 140 countries. Currently, the IMV series is manufactured
in 11 locations, with sales of locally manufactured vehicles underway in approximately 170
countries. Toyota applied the genchi
genbutsu (onsite, hands-on experience)
approach to observing and analyzing
the kinds of vehicles used in various
parts of the world, and developed and
introduced IMVs to meet the needs of
each region. Thorough aftersales
service programs for IMVs have gained
the trust of customers around the world.
The scale of the market will continue to
grow, and Toyota plans to increase
capacity in Thailand, where the auto
parts supply industry is concentrated, as
the global supply base. Increases in new
investment to strengthen other supply bases, including Indonesia, and sequential production bases,
are planned.
Strengths of the IMV Project
The aims of the IMV Project are product appeal, low cost and efficiency, followed by exchange-
rate-fluctuation response capability. Toyota aims to enhance product value by developing
specialized models optimized to the tastes and environments of consumers in emerging markets. We
have also sought to reduce costs and gain efficiency by consolidating production, transitioning from
smallscale production at 11 companies to large-scale production at four global supply bases. We are
coping with the ever-strengthening yen by creating a structure that maximizes local procurement.
The IMV Project is currently accelerating the process of globalizing production and supply. Among
the four global supply bases, Thailand serves as the base for Asia, with the other global sites
handling exports throughout the rest of the world, such as to Oceania, Europe, the Middle East, and
Central/South America, developing into centralized bases. Localized procurement is also evolving,

25. Page | 25
so that parts procurement is not handled within individual countries, but rather
through a globally optimized procurement structure for parts.
Asia makes up half of the sales of the IMV series, but sales in the Middle East, Africa, and
Central/South America are also solid, with sales structures based on locally made core models.
Production capacity recovered comparatively quickly amidst the supply shortages caused by the
Japan Earthquake and Thailand floods in 2011, with the number of vehicles sold increasing greatly.
As a result, sales improved from 460,000 in 2005 in the immediate aftermath of the IMV Project
launch to 770,000 in 2011, and with markets predicted to grow from 2012 on, sales are also
expected to increase.
Future Efforts in Emerging Markets
1) New Strategies for Growing Emerging Markets
A Second Home in Asia
Toyota‟s basic attitude toward our efforts in emerging markets
henceforth can be summed up as "Asia is our second mother
base." What this means in practical terms is that we will
follow on from the IMV Project by strengthening our
production and supply bases for compact vehicles in Asia,
move toward thorough localized procurement, and ensure and
enhance our cost competitiveness.
New Compact Vehicle Strategy
The automobile market in emerging markets
is growing each year in tandem with the
economic growth of each country. Within
those markets, there has been marked growth
in the sales of compact vehicles, so Toyota is
promoting a new compact vehicle strategy
that emphasizes the compact vehicle lineup
and seeks to meet the needs of consumers in
emerging markets.

26. Page | 26
Efforts we are making include the
launch of eight compact vehicle
models specifically designed for
emerging markets, starting with the
Etios in India in December 2012.
There are plans to produce compact
vehicles in emerging markets and
deliver a total of more than 1 million
vehicles a year to customers in over
100 countries. Delivery of the compact
Etios sedan and Etios Liva hatchback
models to South Africa via Toyota
Kirloskar Motors (TKM) of India
began in April 2012.
Future Efforts in Emerging Markets
2) Future Efforts in Each
Market
Russia
Russia is among the markets with the
greatest potential, not only in Europe,
but in the world. Toyota has gained
experience and acclaim from Russian
customers for our core models, such
as the Camry and Land Cruiser
Prado, and we are making steady
progress in localization. We plan to
contribute to the growth of the
Russian auto industry by increasing production of the Camry by Toyota Motors Manufacturing
Russia (TMMR), and also by starting local assembly of the Land Cruiser Prado in the Russian far
east city of Vladivostok at the end of this year.
Africa
Africa, where economies and
populations are steadily growing, is
seen as a market that will continue to
grow. From our base in the Republic
of South Africa, Toyota is looking
into building a vehicle supply system
that can meet the special
characteristics of each African nation.
We aim to open and penetrate new
markets through sales measures
closely aligned to each region. Also,
in April 2012, we started contract
assembly production of the Fortuna
IMV model in Egypt.

27. Page | 27
India
India‟s auto market is expected
to keep pace with India's
growing economy. Toyota will
continue to develop products
that meet the needs of the
region's growing consumer
base, as we did with the Etios.
In addition, TKM established
the Toyota Technical Training
Institute in 2007 with the goal
of providing specialized technical training for manufacturing, and we intend to continue to engage
in human resources development and job creation so as to contribute to the development of the
Indian economy.
Asia
Toyota's definition of "Asia" (for business
purposes) does not include China, India,
Pakistan, Bangladesh and Japan. In 2012, this
market is expected to recover from the impact
of the Thailand floods, with demand rising
above that of 2011. This market is expected
to grow in tandem with the expansion of the
regional economy in the medium- to long
term, and we are aiming to increase sales
from the current 1.6 million-1.7 million annually to 2 million in the future. Hitting that target will
require an expansion in production facilities in Thailand, Indonesia and elsewhere.
Brazil
We have established a new plant in Sorocaba, in the state of São Paulo, Brazil, and beginning in the
second half of 2012, we will produce and
sell the Etios, a new compact model. In the
future we will offer products that meet the
needs of a broad array of consumers. Our
goal is to steadily expand and cultivate the
Brazilian market through corporate
activities deeply rooted in the region, such
as localized production.

28. Page | 28
Vehicle Production, Sales and Exports By Region
Production by region
Region 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
North America 1,278.4 1,444.0 1,535.1 1,519.3 1,636.9 1,404.8 1,189.1 1,404.0 1,206.1 1,720.6
Latin America 58.1 80.4 138.5 177.9 183.1 194.8 181.5 204.3 195.1 242.8
Europe 466.1 582.5 638.1 808.8 806.5 688.3 507.3 461.7 460.3 461.4
Africa 93.3 108.8 121.1 143.8 145.7 179.2 102.8 123.4 150.8 151.7
Asia 548.4 717.0 1,029.2 1,137.7 1,387.3 1,590.0 1,501.4 2,027.4 2,062.8 2,565.7
Oceania 113.6 109.9 109.2 111.6 148.9 141.4 96.8 119.4 93.7 101.4
Overseas total 2,558.0 3,042.7 3,571.2 3,899.0 4,308.6 4,198.4 3,579.0 4,340.4 4,168.8 5,243.6
Japan 3,520.3 3,680.9 3,789.6 4,194.2 4,226.1 4,012.1 2,792.2 3,282.8 2,760.0 3,492.9
Worldwide total 6,078.3 6,723.7 7,360.9 8,093.2 8,534.7 8,210.5 6,371.3 7,623.3 6,928.8 8,736.5
(1 unit = 1,000 vehicles)
Note: Regional classifications are those of the Japan Automobile Manufacturers Association, Inc.
The number of vehicles produced includes the Toyota and Lexus brands. As a result of rounding,
the numbers do not necessarily add up to the total shown here.
Sales by region
Region 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
North America 2,031.3 2,230.3 2,436.1 2,738.3 2,822.2 2,441.8 1,975.4 1,935.5 1,806.9 2,274.6
Latin America 162.1 214.9 270.5 339.4 379.4 370.2 293.6 342.1 333.5 406.6
Europe 851.5 946.9 995.2 1,124.1 1,238.6 1,119.5 886.0 785.8 801.9 817.7
Africa 160.6 206.7 227.2 265.7 313.5 288.1 201.4 197.6 211.9 243.0
Asia 682.4 846.3 1,062.9 1,106.7 1,329.6 1,438.6 1,533.9 1,895.9 1,998.2 2,340.5
Oceania 215.1 232.8 236.9 250.3 275.9 277.7 231.2 249.6 215.9 258.8
Middle East 251.4 270.9 325.3 404.8 482.7 590.1 482.5 554.6 527.5 683.9
Overseas total 4,354.5 4,948.8 5,554.1 6,229.3 6,841.9 6,526.1 5,604.0 5,961.1 5,895.9 7,025.1
Japan 1,715.9 1,758.8 1,713.1 1,692.3 1,587.3 1,470.0 1,375.5 1,566.1 1,201.0 1,692.2
Worldwide total 6,070.4 6,707.6 7,267.3 7,921.6 8,429.3 7,996.1 6,979.6 7,527.3 7,096.9 8,717.3
(1 unit = 1,000 vehicles)
Note: Regional classifications are those of the Japan Automobile Manufacturers Association, Inc.
The number of vehicles produced includes the Toyota and Lexus brands. As a result of rounding,
the numbers do not necessarily add up to the total shown here.
Exports from Japan by region
Region 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
North America 782.8 813.5 939.6 1,344.7 1,244.1 1,124.2 574.0 628.2 494.7 704.6
Latin America 71.5 95.6 120.2 148.9 178.9 146.4 61.3 106.9 95.6 116.4
Europe 424.6 419.0 360.7 375.1 441.5 420.3 230.4 293.7 343.0 311.9
Africa 58.2 92.0 107.2 130.0 147.0 148.7 67.5 72.4 54.7 64.9
Asia 154.7 156.2 129.8 112.3 151.2 169.1 127.1 184.0 183.0 205.4
Oceania 154.1 164.6 159.2 171.6 175.2 184.2 144.4 165.8 146.3 174.3
Middle East 182.6 202.1 226.5 246.7 328.3 393.4 240.0 288.6 247.7 363.6
Total 1,836.0 1,951.7 2,043.2 2,529.3 2,666.1 2,586.3 1,444.7 1,745.0 1,568.9 1,945.7
(1 unit = 1,000 vehicles)
Note: Regional classifications are those of the Japan Automobile Manufacturers Association, Inc.
The number of vehicles produced includes the Toyota and Lexus brands. Excludes KD sets. The
total includes other regions. As a result of rounding, the numbers do not necessarily add up to the
total shown here.

29. Page | 29
Toyota And Ford Collaborate To Build Hybrid Cars
The two car marques will work as equal partners to co-develop a hybrid system for the larger, rear-
wheel drive vehicles, to increase their fuel efficiency.
Toyota is the global lead in hybrid
sales, including the best-selling Prius hybrid
car, and was named the world‟s “greenest
brand” by Interbrand earlier this year. Ford is
one of the leading sellers of pickup trucks,
predominantly sold in the US and Canada.
The range of hybrid trucks will be available by
2020. Details about the cost and scope of the
collaboration have yet to be confirmed.
Toyota‟s vice president for research and
development, Takeshi Uchiyamada, says that the creation of the hybrids will help both companies
meet the strict US fuel economy standards that are set to be enforced in the coming years and
reduce the time it would have taken to design the
system alone.
Ford‟s head of product development, Derrick
Kuzak, says: “This agreement brings together
the capability of two global leaders in hybrid
vehicles and hybrid technology to develop a
better solution more quickly and affordably.”
The firms have also agreed to work on a
standard set of practices for in-car phone,
navigation and entertainment systems.
Ford recently announced its move further towards on board digital services, byscrapping CD
players in its latest Focus range in a bid to shift to an “all digital in car entertainment offering”

30. Page | 30
History of Technological Development From 1990
Toyota is striving to develop automobiles that meet the needs of our customers while at the same
time achieving an optimal balance between consideration for the environment, safety, drivability,
comfort and reliability.
Year Engine Driving/Braking Suspension Body Electoronics Materials
1990
|
1999
Aluminium crankshaft
damper pulley
Active Four-Wheel Steering
System
Cylinder head with
laser cladding
Super-Strut Suspension
Rotary Tri-blade Coupling
5-speed automatic transimission5 Valve Engine
Bumper made
with Toyota Super
Olefin Polymer
(TSOP)
Magnesium cylinder
head cover
Air conditioner with
new refrigerant
Fabric with
deodorizing function
Front-passenger
seat airbag
Comprehensive vehicle control
system(i-Four)
Next-generation lean-
burn engine
GPS car navigation
Head Up Display
Back guide monitor with CCD
camera
Smokeless diesel
engine
Elecrtonically controlled
throttle
6-speed manual transmission
Three-way catalyst
for a lean-burn engine
GPS voice navigation
Combustion pressure sensor
Diesel oxidation
catalyst
Plastic fuel tank
Three-way palladium
catalyst
Diesel Smoke Control
System (DSCS)
Vehicle Stability Control
system(VSC)
Variable Valve Timing-
intelligent (VVT-i)
4-valve direct-injection
diesel engine
Flex Lock-up System
TSOP-5 for interior
parts
Multi-zone automatic air
conditioning
UV-reducing
door glass
Water-repellent
door glass
Titanium nitride coating Brake Assist GOA Collision-
safety body
Fuel Cell Electric
Vehicle (FCEV)
SRS side airbag
Seatbelts with
force-limiter
Direct-injection
engine(D-4)
Tire pressure warning
system
Toyota Hybrid System
(THS)
SRS curtain
shield airbag

31. Page | 31
Blind corner monitor
Radar cruise control system
Navigation shift control Bumper
recycling
technology
Variable Valve Timing
Lift-intelligent (VVTL-i)
ARS
Diesel oxidation
catalyst
Common-rail direct-
injection diesel turbo
engine(D-4D)
ABS for EBD Electric power steering
system
Super CVT
2000
|
2009
Dual-stage SRS
airbags for the
front-passenger
seat
Smart Key System Diesel Particulate
NOx Reduction System
(DPNR)
Package tray and
door trim made out of
the kenaf plant
Negative ion generator
AC100V power outlet
Run flat-tires Back guide monitor with
voice recognition
Electronically Controlled Brake
system(ECB)
Electric 4-wheel drive system
(E-Four)
Dual-stage SRS
airbags for the
driver's seat
Retractable
Metal Top System
Pedestrian-
injury-lessening
body
Bio-plastics
Air conditioner with
electric heat pump
system using
CO2 refrigerant
New Tire-production method G-BOOK
Power back
door system
SRS knee
airbags for driver
Toyota Stop & Go
System
Fuel Cell Hybrid Vehicle
(FCHV-4, FCHV-5)
Toyota Hybrid System
(THS-C, THS-M, THSII)
Pre-crash Safety System
Fuel Cell Hybrid Vehicle
(Toyota FCHV)
Pre-crash
seatbelt
Toyota Intelligent
Idling Stop System
Dual VVT-i
Stoichiometric D-4
Piezoelectric Common-
rail Type Direct-injection
Diesel Turbo Engine (D-
4D Clean Power)
Diesel Hybrid System
Intelligent AFS
Front and side monitoring
Lane-monitoring system
Pollen-removal filter
Night View system Toyota Eco-plastic
Steering-guided clearance
sonar
Smart Entry and Start
System
Plasmacluster Ions
Intelligent Parking Assist
system
VDIM
6 Super ECT (6-speed automatic
transmission)

32. Page | 32
VDIM with active steering
control
SRS twin-
chamber airbag
Lane-keeping assist system
Radar cruise contral with
low-speed tracking mode
S-VSC + Active Control 4WD
Integrated Control
Active stabilizer suspension
system
Pre-crash Safety System with
millimeter-wave radar and stereo
camera fusion system
(Pedestrian detection, steering and
obstacle-avoidance assist system)
D-4S
G-BOOK ALPHA
HELPNET
THS II with monitor
speed reduction device
THS II with two-stage
motor speed reduction
device
Wide-view front monitor
Variable Valve Timing-
intelligent Electric (VVT-
iE)
SRS seat
cushion airbag
8 Super ECT(8-speed automatic
transimission)
Pre-crash Safety System with
driver-monitoring system
(Millimeter-wave radar type)
"Map on Demand"
technology to automatically
deliver differential map data to
car navigation systems
Rear-end Pre-crash Safety
System (Warning of approaching
rear vehicle, Pre-crash Intelligent
Headrests)
Radar cruise contral with
tracking function
Intelligent Parking Assist
(IPA) system with ultrasonic
sensors
Oxygen-level conditioner
Eco Drive Indicator
THSII with two-stage
motor speed reduction
device + full-time all-
wheel-drive system
G-BOOK mX
LED headlight
Valvematic, a next-
generation variable valve
lift mechanism
Active Headrest
Heated seat
"Crawl control" system
Kinetic dynamic suspension
system (KDSS)
8-Speed Sport Direct Shift
transmission
Improved Pre-crash Safery
System with eye-monitoring
system
Anti-mite allergen
seat fabric
Emergency brake signal
Navigation-linked Brake Assist
Night View system with
pedestrian detection function
6-speed manual transmission for
front-wheel drive
Toyota Stop & Start
System
Fuel Cell Hybrid Vehicle
(TOYOTA FCHV-adv)
SRS rear
window curtain
shield airbag

33. Page | 33
Interior vehicle parts
using Ecological Plastic
Front-side Pre-crash Safety
System
Pre-crash Seatback
SRS rear-seat
center airbag
Eco-Drive monitor
Touch Tracer Display
Solar-ventilation system
Remote Air Conditioning
system
Harmonious Driving
Navigator
Multi-terrain Select switch
DSRC Unit
Multi-terrain Monitor
Self-restoring coat
ESPO system
THSII Plug-in (with
motor speed reduction
device)
2010
|
2012
Vehicle Proximity Notification
System
Bio-PET-Based New
Ecological Plastic
"Smart G-BOOK" for
smartphone
New UV-
blocking glass
Horizontally Opposed
D-4S
LDH
(Lexus Dynamic Handling system)
Wrong-way Driving Alert
System
High-power Lithium-
ion Battery
G-Station
DSSS
(Driving Safety Support
System)
2.5 liter 4 cylinder
inline Atkinson cycle
engine
Front wheel drive eight-speed
automatic transmission
Pre-collision System effective at
high speeds
Laser screw
welding
Adaptive High-beam System
(AHS)
Intelligent Clearance Sonar
Drive-start Control
Majority-Owned Subsidiaries
 Toyota Industries Corporation (founded in 1926)
 JTEKT Corporation (1935)
 Toyota Motor Corporation (1937)
 Toyota Auto Body, Co. Ltd. (1940)
 Kanto Auto Works, Ltd. (1945)
 Toyota Tsusho Corporation (1946)
 Toyoda Gosei Co., Ltd. (1949)
 Denso Corporation (1949)
 Towa Real Estate Co., Ltd. (1953)
 Toyota Central R&D Labs., Inc. (1960)
 Toyota Communication Systems Co., Ltd. (2001)
 Toyota Financial Services Corporation (2000)
 Daihatsu Motor Co (1907; Toyota owns 51% of the company since 1999.)
 Hino Motors (diesel trucks and buses. Toyota owns 50.5% of the company since 2001.)
 Toyofuji Shipping Co. (Shipping company for Toyota vehicles overseas)

34. Page | 34
SWOT Analysis Of Toyota
A. STRENGTHS:
i. New Investments:
a). New investment by Toyota in factories in the US and China saw profits rise, against the
worldwide motor industry trend which was suffering heavy losses. Net profits
rose 0.8% to 1.17 trillion yen ($11bn; £5.85bn), while sales were 7.3% higher at 18.55 trillion yen.
b). ANALYSIS :-
 The company had the right mix of products for the markets that it served.
 USA believes in „living life king size‟ and is obsessed with bigger cars.
 Toyota primarily sold bigger cars like Fortuner and Qualis in the American market and this was
a great success.
 China on the other hand prefers fuel-efficient sedans. Toyota in China marketed and sold cars
like Prius, Corolla and Camry.
 This was possible because of much focused segmentation, targeting and positioning of their
products.

35. Page | 35
ii. Manufacturing:
a). In 2003 Toyota knocked its rivals Ford into third spot, to become the World's second largest
carmaker with 6.78 million units. The company is still behind rivals General Motors with 8.59
million units in the same period.
b). ANALYSIS :-
 Its strong industry position is based upon a number of factors including a diversified product
range, highly targeted marketing and a commitment to lean manufacturing and quality.
 The company maximizes profits through Total Quality Management or TQM which is an
integrative set of principles and behavior adopted by Toyota‟s management for continuously
improving the quality of products and processes.
 The company makes a large range of vehicles for both private customers and commercial
organizations, from the small Yaris to large trucks. Therefore, if the demand in one sector
decreases, the company always has other sectors as back up and the chances of a complete loss are
low.
iii. Strong Brand Image :
a. Toyota currently sells 70 models of cars under its namesake brand with Corolla and Prius as
flagship models. Toyota‟s brand image is also associated with environment friendly cars as it is a
leader in manufacturing of „green‟ cars.
b). ANALYSIS :-
 Toyota increases brand awareness, sells more cars in order to increase the existing brand image.
 Toyota through a series of surveys and studies of customer behaviour understood that customers
are growing selective in terms of fuel efficiency and CO2 emissions.
 The management quickly decided to invest in „green‟ technology and Toyota became one of the
first companies to manufacture environment friendly, hybrid and efficient cars like the Auris.
 This greatly boosted their Brand image giving them competitive advantage over their
competitors.
B. WEAKNESSES
i. Large scale Recalls :
a) Toyota had quite a few large-scale vehicle recalls over the past few years. The company recalled
9 million vehicles in 2009-2010 and 7.43 million cars in 2012. Such recalls does not only hurt the
firm financially but significantly damages firm‟s brand.
b) ANALYSIS:-
 Recalls have taken place mostly because of safety issues that have not been met or because of
certain defects in the cars produced.
 Toyota must ensure that the cars produced are faultless and of good quality.
 An increase in recalls not only results in losses but also harms the brand image of the company.
ii. Weak presence in emerging markets :
a) Toyota markets most of its products in the US, Europe and in Japan. Therefore it is exposed to
fluctuating economic and political conditions those markets. Emerging economies as China or India
make only a small percentage of all Toyota‟s sales.

36. Page | 36
b) ANALYSIS:-
 The company in order to reduce this weakness has started to shift its attention towards India and
China, which is a good move. But, it must do more to increase its market share in these emerging
economies in order to compete with General Motors which has a bigger market share especially
in China.
 Toyota must also look towards Africa. Many African nations like Tanzania, South Africa are
experiencing high growth rates. Not many car manufacturing companies have ventured into the
continent. Toyota should increase sales of cheaper, smaller cars in Africa. This will give them an
advantage over GM in the global scenario.
C. OPPORTUNITIES
i. Hybrid and Eco friendly Technology :
a) Lexus and Toyota now have a reputation for manufacturing environmentally friendly vehicles.
Lexus has RX 400h hybrid, and Toyota has it Prius. Both are based upon advance technologies
developed by the organization. Toyota has also sold on its technology to other motor manufacturers,
for example
Ford has bought into the technology for its new Explorer SUV Hybrid.
b) ANALYSIS:-
 Increasing fuel prices have boosted the demand for more efficient cars. Customers today are
more aware of the harm air pollution by vehicles causes to the environment. Therefore, there is a
big demand for environment friendly cars.
 Since Toyota already has a first mover advantage in making hybrid eco friendly cars, it should
capitalize on this opportunity and invest more on hybrid R&D and produce more environment
friendly cars.
 This will result in huge profits and increase Toyota‟s market share.
ii. New Customer Segments :
a) Toyota is to target the 'urban youth' market. The company has launched its new Aygo, which is
targeted at the streetwise youth market. The vehicle is a unique convertible with inbuilt sub
woofers.
b) ANALYSIS :-
 The youth of today have become more independent and wealthy. This has created a big market
for cars. Therefore Toyota is trying to capitalize on this opportunity by introducing the new Aygo
for the youth. It attempts to capture the DJ culture and the nature of dance to market this car.
 Even though the profits earned through the new Aygo are not big, it has helped Toyota increase
its market segment, which is crucial for expansion. Moreover, this segment may prove to be highly
profitable in the future.
iii. Global Expansion :
a) Toyota is expanding its market share and operations in emerging economies like India and China.
Toyota‟s emerging market sales ratio reached 45% in 2011, an increase of 10% in the three years
since we achieved 35% in 2008. The Toyota Global Vision calls for an emerging-market sales ratio
of 50% by 2015.

37. Page | 37
b) ANALYSIS :-
 Emerging economies have a huge demand for cars. Toyota must make sure it increases its
market share in the developing economies in order to survive and compete in the global scenario.
 By increasing localization and strengthening the supply chain system, Toyota is slowly
expanding into emerging markets.
D. THREATS:
i. Competition :
a) Toyota faces tremendous competitive rivalry in the car market. Competition is increasing almost
daily, with new entrants coming into the market from China, South Korea and new plants in Eastern
Europe. Volkswagen group is strongly growing and GM steps up after its reorganization to become
more competitive than ever.
b) ANALYSIS :-
 There is nothing much that can be done to curb the rising competition. But, competition can be
fought by introducing new products, slashing prices, increasing market segments and innovation.
 Toyota has introduced the Yaris which is a very cheap car and has also sliced the costs of older
versions of Corolla. The Aygo and Prius are examples of innovative products by Toyota.
ii. Shifts in exchange rates :
a) Most of Toyota‟s revenue and raw material come from foreign countries. The profits earned
abroad must be sent back to Japan and converted to yen. Appreciating yen exchange rate against
other currencies means lower profits for Toyota.
b) ANALYSIS :-
 This is a threat, which is very difficult to minimize. Toyota will have to wait till the Yen
depreciates but, this will result in delayed payments and increased debts which is bad for the
company.
 Another solution could be setting up new bases in other countries so that they can enjoy their
profits through the exchange rate of that country.

38. Page | 38
Conclusion
Toyota Industries has promoted diversification through continuous innovation all through its life
and expanded the scope of its business domains to include textile machinery, automobiles (vehicles,
engines, car air-conditioning compressors, etc.), and materials handling equipment, electronics, and
logistics solutions. All these Expansion Strategies adopted by Toyota has resulted in making Toyota
one of the largest Conglomerates.
Toyota Motors in itself has 522 Subsidiaries some of which are individually present in Forbes
Fortune 500 list.
Today Toyota is the largest carmaker in the world leading General motors and the top selling
automaker. The Japanese company has sold 9.7million cars and trucks in 2012 leaving GM in
second place with 9.29million cars.
The backbone of their success being their sharp, well thought out and excellently implemented
strategies. It yielded excellent result over the years it brought them to the No. 1 position and if
maintained, there is no doubt about the fact that they‟ll maintain their position for years to come.

39. Page | 39
References
http://www.toyotafinancial.com, http://www.toyota.com
http://www.toyota-industries.com/corporateinfo/corpdata/
http://www.toyoland.com/history.html
http://www.toyota-global.com/investors/ir
http://www.marketingweek.co.uk/toyota-and-ford-collaborate-to-build-hybrid-
cars/3029482.article
http://www.toyota-global.com/investors/ir_library/annual/pdf/2012/feature/