[Company analysis] Toyota Motor Corporation (トヨタ自動車)

「Toyota Motor Corporation (トヨタ自動車)」is Japan's largest company and at the same time, the largest automobile manufacturer in the world. The market share in Japan is 40%, and it is also strong in the US market. It is also the mother company of「Hino Motors, Ltd(日野自動車)」and「Daihatsu Motor Co., Ltd.(ダイハツ工業)」. In the past, it was known as a company with excellent sales capabilities, but now it is famous for the world's highest technological strength. The number of consolidated employees is approximately 364,445.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	Toyota Motor Corporation
Company name (Japanese)	トヨタ自動車
Date of establishment	Saturday, August 28, 1937
Headquarters location	〒471-8571 愛知県豊田市トヨタ町1番地
Capital	635,400
Consolidated sales	30,225,681
Consolidated operating profit	2,467,545
Consolidated total assets	51,936,949
Consolidated capital	20,565,210
Capital adequacy ratio	39.6%
Consolidated number of employees	364,445

 

 

 

2. Summary and Features

 
The automobile division, which was established in September 1933 at「Toyoda Automatic Loom Works, Ltd.(豊田自動織機製作所)」 which was established by Toyota Sakichi(豊田佐吉) in Aichi Prefecture, is the beginning of「Toyota Motor Corporation」. At that time, they were able to start automobile production, by utilizing their know-how such as casting and machining technology accumulated through the production of automatic looms. Launching "G1" type truck in November 1935, the legendary automobile business of「Toyota Motor Corporation」was initiated.

For financial services for sales, they established「Toyota Kinyuu Kaisha(トヨタ金融会社)」in 1936, and this is the predecessor of today's「Toyota Tsusho Corporation(豊田通商)」, one of the Japanese major general trading company. In September of the same year, the first mass-produced passenger car "AA" was released. The following year, on August 28, 1937,「Toyota Motor」became completely independent from「Toyoda Automatic Loom Works」. 

During the Sino-Japanese War and the World War II, they mainly produced Army trucks and derivative of "AA". In addition, they also manufactured aircraft engines in collaboration with「Kawasaki Heavy Industries, Ltd.(川崎重工業)」. After the both world war, 「Toyota Motor」confronted a business crisis, but soon they were able to overcome it thanks to the special demand for military trucks caused by Korean War. 

From that time,「Toyota Motor」released a series of steady-seller automobiles such as "Crown(1955)", "Corolla ( 1957)", "Dyna(1959)" and "Publica(1961)". Especially, the Corolla, which was released in 1966, recorded the top sales in Japan for 33 consecutive years. This played a decisive role in conquering the domestic market. In addition, sales began to increase rapidly as they began full-scale expansion into North America, Thailand, and Brazil. As a result, in 1974, 10 years after the launch of the Corolla, they won the top sales volume in the world.

In 1989, the luxury brand "Lexus" was launched targeting the American market, but the performance of「Toyota Motor」was considerably worsened by the collapse of the bubble economy. In particular, the market flow has shifted from the sedan-type luxury car to SUVs and minivans which concentrate in cost-efficiency, and eventually the market share has begun to decline. However, in 1999, the world's first mass-produced hybrid vehicle "Prius" was released. While succeeding in building the image of an environment-friendly company, their overseas sales volume began to increase sharply from 2002.

However, at the time of Subprime mortgage crisis, their operating income turned into a deficit for the first time in 58 years. In addition, there was a large-scale recall occurred from 2009 to 2010. And in 2011, external conditions became bad due to the 2011 Tōhoku earthquake and tsunami. Because of this consecutive events, this company was surpassed by「General Motors」and「Volkswagen」. To overcome this, they strengthened production cost efficiency from 2008, while drastically reducing the number of directors and they delegated some authority to overseas corporations, in order to improve the speed of business decision. As a result, in 2012 they achieved the largest sales volume of 9,477,762 units per year, and succeed in regaining top share in the world automobile market.

Currently,「Toyota Motor」is conducting sales activities all over the world and this kind of world-class sales capability can be considered as a strength. Also, they have overwhelming financial power, and continue to reinvest this in R & D. As a result, it is evaluated that there is no peer in Japan, especially in the field of autonomous driving. In addition, not only the automobile industry but also the solid-state battery field,「Toyota Motors」has the world's highest level of technology. And full-scale commercialization praticalization of solid-state battery is expected to be conducted in the early 2020s. It is said that.

However,「Toyota Motors」is relatively weak in the Chinese market, which is called the world's largest automobile market. In China only, it has 3rd largest sales volume as a Japanese company after「Nissan Motor」and「Honda Motor」. It is also regarded as Japan's No.1 company in the autonomous driving field, but in the world level, there is 「Tesla」who has the most advanced autonomous driving technology. 

 

 

 

3. Major Business

 

■ Automobile business
This is the core business of「Toyota Motor」.

■ Financial business
Through Toyota Financial Services Corporation, they provide automotive-related financial services to more than 35 countries and regions around the world, including Japan.

■ Housing business
Through「Toyota Housing Corporation」, they are developing various housing-related businesses such as detached houses and remodeling.

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		27,597,193	29,379,510	30,225,681
Consolidated operating profit		1,994,372	2,399,862	2,467,545
Consolidated total assets		48,750,186	50,308,249	51,936,949
Consolidated net assets		18,668,953	19,922,076	20,565,210
Breakdown of sales	Japan	8,798,903	9,273,672	9,520,148
	America	10,033,419	10,347,266	10,585,934
	Europe	2,517,601	2,940,243	3,055,654
	Asia	4,279,617	4,497,374	4,832,392
	Others	1,967,653	2,320,955	2,231,553