Company Overview
Toyota Motor Corporation engages in the design, manufacture, assembly, and sale of passenger cars, commercial vehicles, and minivans, along with a range of related accessories. The company operates through 2 primary business segments: Automotive and Financial Services.
Beyond automobile manufacturing, Toyota also provides financial and leasing services, telecommunications, information technology, housing, marine, and biotechnology solutions. Its diverse product and service portfolio is marketed under the Toyota brand, serving both individual and corporate clients across multiple industries. Toyota’s operations are supported by a robust network of consolidated subsidiaries, joint ventures, and associated companies spanning the Americas, Europe, Africa, the Asia Pacific, and the Middle East.
History of Toyota Motors
- 1924: The Toyoda Model G Automatic Loom was invented.
- 1929: The patent for the automatic loom was sold to a British company.
- 1930: Kiichiro Toyoda began research into creating a small gasoline-powered engine.
- 1933: The Automobile Department was established at Toyoda Automatic Loom Works, Ltd..
- 1935: The “Five Main Principles of Toyoda” were compiled, emphasizing duty, creativity, practicality, a homelike work environment, and respect for spirituality and gratitude.
- 1936: The AA Sedan was completed.
- 1937: Toyota Motor Co., Ltd. was founded.
- 1938: The Honsha Plant began production.
- 1950: Amid a financial disaster, Toyota Motor Sales Co., Ltd. was created.
- 1951: The Suggestion System was introduced.
- 1955: The Toyopet Crown, Toyota’s first fully developed passenger car, was launched.
- 1957: Prototypes of the Crown were exported, and Toyota Motor Sales, U.S.A., Inc. was established.
- 1959: The Motomachi Plant became the first passenger car production facility in Japan.
- 1975: Toyota ventured into the manufactured housing business.
- 1982: Toyota Motor Co., Ltd. and Toyota Motor Sales Co., Ltd. combined to form Toyota Motor Corporation.
- 1988: Toyota Motor Manufacturing, Kentucky, Inc. began production.
- 1989: The Lexus brand, Toyota’s luxury vehicle division, was introduced in the U.S.
- 1992: Toyota Motor Manufacturing (UK) Ltd. began production.
- 1997: The Prius, the world’s first mass-produced hybrid vehicle, was launched.
- 1999: Toyota surpassed 100 million vehicles in cumulative domestic production.
- 2000: Sichuan FAW Toyota Motor Co., Ltd. began production in China.
- 2002: Tianjin FAW Toyota Motor Co., Ltd. started production in China.
- 2006: GAC Toyota Motor Co., Ltd. began production in China.
- 2012: The Prius PHV was launched, and global production exceeded 200 million
- 2014: The Mirai, the world’s first commercially available fuel cell car, was launched.
- 2017: Global sales of Toyota’s hybrid vehicles exceeded 10 million
- 2018: Toyota presented the Prius Plug-in with fuel cell technology as a new hybrid-electric supporter vehicle.
- 2019: Toyota partnered with Denso Corporation to develop next-generation in-vehicle semiconductors.
- 2020: Toyota Kirloskar Motor launched the Vellfire MPV in India.
(Source: Company Website)
Regional Distribution of Toyota’s Retail Vehicle Sales
- Japan represented 15% of Toyota’s total retail vehicle sales globally in FY2024.
- North America contributed 26% to Toyota’s overall retail vehicle sales for the year.
- Europe accounted for 11% of the company’s global retail vehicle sales.
- Asia made up 14% of Toyota’s retail vehicle sales worldwide.
- China comprised 18% of Toyota’s global retail vehicle sales in FY2024.
- The Other regions contributed 15% to Toyota’s total retail vehicle sales for the year.
(Source: Toyota Integrated Report)
Shareholder Analysis
- As of March 2024, The Master Trust Bank of Japan, Ltd. owns 1,808,404 shares, representing 42% of the total shares.
- Toyota Industries Corporation holds 1,192,331 shares, equating to 85% of the total shareholding.
- Custody Bank of Japan, Ltd. possesses 836,489 thousand shares, which make up 21% of the overall shareholding.
- Nippon Life Insurance Company holds 633,230 thousand shares, accounting for 70% of the shares.
- JP Morgan Chase Bank, N.A. (with Mizuho Bank, Ltd. acting as the standing proxy for settlement and clearing services) owns 585,585 thousand shares, or 35% of the total.
- DENSO Corporation owns 449,576 thousand shares, amounting to 34% of the total shareholding.
- State Street Bank and Trust Company (via Mizuho Bank, Ltd. as the standing proxy for settlement and clearing) holds 378,847 thousand shares, representing 81% of the total shares.
- The Bank of New York Mellon, acting as the Depositary Bank for Depositary Receipt Holders, holds 321,674 thousand shares, which is 39% of the shareholding.
- Mitsui Sumitomo Insurance Company, Limited owns 284,072 thousand shares, comprising 11% of the total shares.
- Tokio Marine & Nichido Fire Insurance Co., Ltd. holds 255,324 thousand shares, or 89% of the total shareholding.
(Source: Toyota Integrated Report)
Shareholding Distribution by Shareholder Type
- Foreign corporate entities and others hold 3,369,424,000 shares, which account for 01% of the total shares.
- Financial institutions and securities companies hold 5,103,918,000 shares, representing 88% of the total shareholding.
- Individuals and others possess 1,695,819,000 shares, making up 58% of the total shares.
- Other domestic corporate entities hold 3,305,011,000 shares, comprising 53% of the total shareholding.
(Source: Toyota Integrated Report)
Global Network by Region
- As of January 31, 2025, Europe has 6 production bases and manufacturing companies.
- In Japan, there are 16 production bases and manufacturing companies.
- North America is home to 13 production bases and manufacturing companies.
- Asia, excluding Japan, has 27 production bases and manufacturing companies.
- Other regions contribute 7 production bases and manufacturing companies.
- Regarding research and development sites, Europe has 3 R&D locations.
- Japan hosts 8 R&D sites.
- In North America, there are 5 R&D sites.
- Asia, excluding Japan, has 6 R&D sites.
- No R&D sites are located in Other regions.
(Source: Toyota Integrated Report)
Financial Analysis
Annual Revenue
- In 2024, the company reported total revenue of 45,095.3 billion yen, marking an increase of 7,941.0 billion yen or 4% compared to 37,154.0 billion yen in 2023.
- During the same fiscal year, Toyota achieved an operating income of 5,352.9 billion yen, reflecting a sharp rise of 2,627.9 billion yen or 4% compared with FY2023.
Geographical Revenue
Japan:
- In FY2024, Toyota’s sales revenue in Japan rose to 21,020.7 billion yen, an increase of 3,437.5 billion yen or 6% compared with FY2023. Operating income climbed by 1,582.8 billion yen or 83.2%, reaching 3,484.2 billion yen. This strong performance was driven by effective marketing strategies and favorable currency exchange rate movements that boosted domestic profitability.
North America:
- In FY2024, Toyota’s North American operations recorded sales revenue of 17,943.0 billion yen, up by 4,099.1 billion yen or 6% from FY2023.
- Operating income improved by 0 billion yen, reaching 506.3 billion yen, supported by targeted marketing efforts, production optimization, and stringent cost reduction initiatives across the region.
Europe:
- In Europe, Toyota achieved sales revenue of 5,681.7 billion yen in FY2024, reflecting a 1,408.0 billion yen or 9% year-on-year increase.
- Operating income rose substantially by 6 billion yen or 575.4%, reaching 388.0 billion yen.
- The surge was mainly due to strategic marketing initiatives and the absence of the 5 billion yen loss recorded in FY2023, which included 89.8 billion yen linked to the cessation of vehicle production in Russia.
Asia:
- In FY2024, the company’s Asian operations generated 8,730.7 billion yen in sales revenue, growing by 8 billion yen or 8.5% compared with FY2023.
- Operating income advanced by 1 billion yen or 21.2%, totaling 865.5 billion yen.
- This growth stemmed from enhanced marketing activities, cost-efficiency programs, and steady demand across key markets such as India, Thailand, and Indonesia.
Other Regions (Central & South America, Oceania, Africa, and the Middle East):
- Sales in these regions reached 4,389.7 billion yen, increasing by 5 billion yen or 26.4% compared with FY2023.
- However, operating income declined by 0 billion yen or 14.3%, totaling 198.3 billion yen, primarily due to inflationary pressures and currency depreciation, particularly the weak Argentine peso, which negatively affected profitability in Latin American markets.
(Source: Toyota Financial Summary Report)
Research and Development Expenditure
- In 2024, Toyota recorded R&D expenditure of 1,202 billion yen, reflecting a slight decline from the previous year as the company focused on optimizing resource allocation while continuing substantial investments in artificial intelligence integration, autonomous driving systems, and sustainable manufacturing technologies.
- In 2023, Toyota’s R&D spending reached 1,242 billion yen, marking an increase that highlighted its intensified efforts toward the development of hybrid systems, battery electric vehicles (BEVs), and hydrogen-powered mobility innovations.
- In 2022, the company allocated 1,124 billion yen to research and development, underscoring its commitment to driving innovation and advancing next-generation automotive and mobility technologies.
Segmental Analysis
Automotive
- In FY2024, Toyota’s automotive sales revenue reached 41,266.2 billion yen, an increase of 7,446.2 billion yen or 0% compared with FY2023.
- Operating income rose sharply by 2,440.8 billion yen or 9%, totaling 4,621.4 billion yen.
- The growth was driven by strong global demand recovery across major markets.
- Robust marketing initiatives boosted vehicle sales and brand positioning.
- Expansion in hybrid and battery electric vehicle (BEV) sales supported overall revenue growth.
- Improved production efficiency, enhanced cost competitiveness and output stability.
- Favorable foreign exchange impacts further strengthened profitability.
Financial services
- Toyota’s financial services segment generated 3,484.1 billion yen in sales revenue, an increase of 5 billion yen or 24.0% compared with FY2023.
- Operating income climbed to 0 billion yen, reflecting a rise of 132.5 billion yen or 30.3% year over year.
- The growth was primarily supported by a reduction in valuation losses on interest rate swaps at U.S.-based finance subsidiaries.
- Effective risk management strategies and improved market conditions enhanced financial stability.
- A steady increase in global demand for vehicle financing and leasing services contributed to the overall revenue expansion.
- The segment’s performance highlights Toyota’s strong financial ecosystem and its ability to adapt to changing economic and interest rate environments.
All Other
- Toyota’s financial services segment generated 3,484.1 billion yen in sales revenue, an increase of 5 billion yen or 24.0% compared with FY2023.
- Operating income climbed to 0 billion yen, reflecting a rise of 132.5 billion yen or 30.3% year over year.
- The growth was primarily supported by a reduction in valuation losses on interest rate swaps at U.S.-based finance subsidiaries.
- Effective risk management strategies and improved market conditions enhanced financial stability.
- A steady increase in global demand for vehicle financing and leasing services contributed to the overall revenue expansion.
(Source: Toyota Financial Summary Report
Patents of Toyota
- Toyota submits around 15,000 patent applications annually, both in Japan and internationally, and has secured approximately 9,000 registered patents.
- In 2022, Toyota held the highest number of patents among automobile manufacturers in Japan, the United States, and other nations.
Patent and Patent Application Breakdown by Technological Field in 2023
- 50% of the registered patents and patent applications were related to other vehicle technologies (including engine, body, chassis, etc.).
- 18% of the patents filed focused on batteries.
- 18% of the total patents were dedicated to electrified vehicles.
- 5% of the patents were for automated driving
- 9% of the patent filings were in the area of connected technologies.
Patent Breakdown by Technological Field in 2012
- 75% of the registered patents were related to other vehicle technologies (such as engine, body, and chassis).
- 14% of the patents were for electrified vehicles.
- 7% of the filings focused on batteries.
- 3% of the patents were related to automated driving
- 1% of the total patents were dedicated to connected technologies.
(Source: Toyota Integrated Report)
Recent Developments
- In June 2025, Toyota unveiled the GR LH2 Racing Concept, a liquid hydrogen–powered prototype aimed at advancing hydrogen technology and demonstrating its potential within motorsports applications.
- In May 2025, Toyota introduced the new RAV4 (Robust Accurate Vehicle with 4 Wheel Drive), designed to align with evolving consumer lifestyles and modern mobility needs through enhanced efficiency and versatility.
- In April 2025, the company rolled out the Evolved GR Yaris, a refined version incorporating performance insights gathered from professional drivers and real-world racing conditions to enhance driving precision.
- In April 2025, Toyota entered a strategic partnership with Waymo to jointly explore innovations in autonomous driving technology, focusing on safe and scalable deployment.
- In March 2025, Toyota reinforced its commitment to integrated development by launching the Toyota New Global Architecture (TNGA) framework alongside its in-house company system, promoting product-centred management and design efficiency.
- In March 2025, Toyota launched the Supra RZ Grade, engineered for a more immersive driving experience, along with the Supra “A90 Final Edition”, a special high-performance model celebrating global Supra enthusiasts.
- In February 2025, the company launched the evolved GR Corolla, enhanced through motorsport-derived technologies from competitions like the Super Taikyu Series, achieving improved cornering stability, acceleration, and cooling performance.
- In December 2024, Toyota launched the new Alphard and Vellfire Plug-in Hybrid Electric Vehicles in Japan, further expanding its electrified vehicle portfolio to meet growing demand for sustainable premium mobility.
- In September 2024, Toyota strengthened its collaboration with the BMW Group to promote the advancement of a hydrogen-based mobility ecosystem jointly, emphasizing long-term sustainability and shared innovation.
(Source: Toyota Motor Press Releases)
