Global Presence of Toyota Motors

1. Global Strategy
Presented By-
Group 6
Manvi Bajpai (26)
Tanmoy Bhattacharyya (49)
Varun Goel (50)
Yamini Yadav (53)

2. Toyota Motor Corporation
o Headquartered in Japan
o Founded by Kiichiro Toyoda in 1937
o Revenues 18.9 trillion Yen in 2010
o 71,116 employees
o Operations in North America, Latin America, Europe,
Africa, Asia, Oceania and Middle East

3. Globalization Efforts
o Domestic Problems
o excessive capacity, choosy customers, surplus workforce and
intensified competition within Japan.
o In 1998, Japan sales accounted for a mere 38% of the
company's total sales, as compared to 52% in 1990
o In June 1995, Toyota announced the 'New Global
Business Plan’ aimed at
o advancing localization (of production)
o increasing imports (through collaboration with foreign
automobile companies) over a three year period.
o A major objective of this plan was to increase Toyota's
offshore production capacity to 2 million units by 1998.
o Toyota focused on increasing overseas production
significantly by establishing new plants and expanding
the capacity of the existing plants

4. Steps involved in Globalization
Establish a local
sales network
and launch brand
promotion
Build Auto parts
manufacturing
bases
Establish JVs
with local players
and build
automobiles there

5. Globalization Time line

6. Production Bases

7. Hurdles in Globalization
o Quality Assurance
o “no matter where Toyota vehicles are made, they have the
same quality.”
o Made by Toyota
o “ The Toyota Way” needs to be spread across all locations
o Minimize the necessary support that comes from Japan
and let each of the overseas bases become self-reliant
o Respect for people in local community and Toyota’s local
employees

8. Globalization Pay offs
o By 2003, Toyota was present in almost all the
major segments of the automobile market that
included small cars, luxury sedans, full-sized
pickup trucks, SUVs, small trucks and
crossover vehicles.
o Global vehicle production increased by 3.3
times since the early 1960s, Toyota's
production had increased by 38 times
2010 Global Vision
o Aimed at achieving 15% market share of
global market and surpassing GM
o The theme of the new vision was 'Innovation
into the Future,'
o Recycling Based Society
o Age of Information Technology
o Development of Motorization on a Global
Sale
o Diverse Society

9. Global Production Center
o To ensure that all across the overseas bases the value
of Toyota remain the same
o Best Practices need to be determined and followed
o Initially established with Motomachi plant in 2003
o Activity Goals:
o “Human Resources Development”
o “Localization of Model Switchovers”
o Helping plant personnel learn how to prepare for the
production of redesigned and/or different vehicle models
o In 2006 GPC were opened in United States, United
Kingdom and Thailand to ensure skill training and HR
development in their respective regions

10. Globalization and Localization
Manufacturing
o During the almost 50 years since they first began
exports, Toyota vehicles have found their way to over
170 countries and regions throughout the world
o Currently there are 52 bases in 27 different countries
and regions.
o In addition, there are design and R&D bases in seven
locations overseas
“from development and design to production, sales and service,
Toyota has now achieved consistent globalization as well as
localization.” - Koichi INA, Senior Technical Executive, Toyota
Motors

11. The Global Toyota
• The reaches of Toyota extend throughout the world.
• Toyota has plants located in every continent except Antarctica, with many more
still under construction.
• Even in Europe, production by Toyota subsidiaries will increase from 500,000
units to 610,000 units made in the United Kingdom, France, and Turkey by 2006
• The first Chinese-built Toyota, the VIOS, was made in October 2002
• As a measure of attempting to tap into the Chinese market, Toyota hopes to
capture 10% of the market by 2010
• In North America alone, upwards of 175,000 people are employed by Toyota
subsidiaries.
• As of today, the majority of Toyotas purchased in North America are built in
North America.
• In North America, the Avalon, Camry, Corolla, Matrix, Sequoia, Sienna, Solara,
Tacoma and Tundra are produced.
• At TMMAL, more than 120,000 engines are produced annually for the Toyota
Tundra , which in turn is built by TMMI.
• More than 150,000 Tundras will be built at TMMT, a plant to be built in Texas by
2006.
• Even the Toyota Tacoma will be produced in Mexico starting in 2005
• A joint venture between General Motors and Toyota, known as NUMMI (New
United Motor Manufacturing, Incorporated) is currently based in Fremont,
California
• As a part of Toyota policy, much of the steel used in production is purchased
locally

12. Thank You