toyota

Chapter 1 ť IN1kCDUC1ICN
CCMÞAN¥ ÞkCIILL
1he sLory of 1oyoLa MoLor CorporaLlon began ln SepLember 1933 when 1oyoLa
AuLomaLlc Loom creaLed a new dlvlslon devoLed Lo Lhe producLlon of auLomoblles under Lhe
dlrecLlon of Lhe founderƌs sonţ kllchlro 1oyoLaŦ Soon LhereafLerţ Lhe dlvlslon produced lLs flrsL
1ype A Lnglne ln 1934ţ whlch was used ln Lhe flrsL Model A1 passenger car ln May 1933 and Lhe
C1 Lruck ln AugusL 1933Ŧ ÞroducLlon of Lhe Model AA passenger car sLarLed ln 1936Ŧ
AlLhough Lhe 1oyoLa Croup ls mosL well known Loday for lLs carsţ lL ls sLlll ln Lhe LexLlle buslness
and sLlll makes auLomaLlc looms (fully compuLerlzedţ of course)ţ and elecLrlc sewlng machlnes
whlch are avallable worldwldeŦ

1oyoLa MoLor CoŦ was esLabllshed as an lndependenL company ln 1937Ŧ AlLhough Lhe
foundlng famlly name ls 1oyodaţ Lhe company name was changed Loť

Slgnlfy Lhe separaLlon of Lhe foundersƌ work llfe from home llfeŤ

Slmpllfy Lhe pronunclaLlonţ and

Clve Lhe company an ausplclous beglnnlngŦ @f ls consldered luckler Lhan @f ln !apanţ
where elghL ls regarded as a lucky numberţ and elghL ls Lhe number of sLrokes lL Lakes Lo wrlLe
@f ln kaLakanaŦ

uurlng Lhe Þaclflc War Lhe company was dedlcaLed Lo Lruck producLlon for Lhe lmperlal
ArmyŦ 8ecause of severe shorLages ln !apanţ mlllLary Lrucks were kepL as slmple as posslbleŦ lor
exampleţ Lhe Lrucks had only one headllghL on Lhe cenLer of Lhe hoodŦ Commerclal passenger
car producLlon sLarLed ln 1947 wlLh Lhe model SAŦ ln 1930 a separaLe sales company 1oyoLa
MoLor Sales CoŦ was esLabllshed (whlch lasLed unLll !uly 1982)Ŧ ln Aprll 1936 Lhe 1oyoLa dealer
chaln was esLabllshedŦ

ln 2006ţ 1oyoLa was engaged ln a varleLy of pro[ecLs deslgned Lo solldlfy lLs foundaLlons whlle
conLlnulng Lo growŦ

Cn Lhe producL fronLţ Lexus launched lLs new flagshlp modelţ Lhe LSţ and Lhe new global
Camry wenL on saleŦ ln !apanţ a new Corolla range was lnLroducedţ emphaslzlng Lhe lmporLance
of Lhls besLŴselllng carŦ

ln manufacLurlngţ several new pro[ecLs were sLarLed around Lhe worldŦ ln Mayţ
manufacLure of Lhe Camry began ln Cuangzhouţ Chlnaţ whlle ln Lhe unlLed SLaLesţ Lhe kenLucky
planLţ whlch ln CcLober celebraLed 20 years of producLlonţ sLarLed manufacLurlng Lhe flrsL
1oyoLa hybrld vehlcle Lo be made ln norLh Amerlcaţ Lhe Camry PybrldŦ ln novemberţ Lhe 1exas
planL began produclng Lhe new 1undra Lruckţ a key vehlcle ln 1oyoLa's norLh Amerlcan llneupŦ
ln !apanţ 1oyoLa MoLor kyushuţ lncŦ began fullŴscale operaLlons aL lLs englne facLoryţ whlle
1oyoLa MoLor 1ohoku CoŦţ LLdŦ lncreased lLs manufacLurlng capaclLyŦ

ln human resources developmenLţ followlng Lhe esLabllshmenL of Lhe Asla Þaclflc Clobal
ÞroducLlon CenLer ln 1halland ln AugusL 2003ţ 1oyoLa esLabllshed Lhe norLh Amerlcan
ÞroducLlon CenLer ln Lhe uŦSŦ ln lebruaryţ and Lhe Luropean Clobal ÞroducLlon CenLer ln Lhe
unlLed klngdom ln MarchŦ LsLabllshed as branches of Lhe Clobal ÞroducLlon CenLer ln !apanţ
Lhese were creaLed Lo spread 1oyoLa's manufacLurlng knowledge and skllls LhroughouL Lhe
world ln pace wlLh Lhe rapld growLh of 1oyoLa's overseas manufacLurlngŦ 1he cenLers educaLe
Lralners for local manufacLurlng planLs ln all reglonsţ wlLh Lralnees passlng on whaL Lhey learn Lo
Leam members on Lhelr reLurn Lo Lhelr planLsŦ

ln 8Ǝuţ 1oyoLa focused lLs efforLs on Lhree key areasť envlronmenLţ safeLy and energyŦ lL
made a speclal efforL ln Lhe area of Lhe envlronmenL by expandlng lLs llneup of hybrld vehlclesţ
and has worked on 8Ǝu relaLlng Lo plugŴln hybrldŦ ln addlLlonţ as parL of 1oyoLa's efforLs Lo
respond Lo Lhe dlverslflcaLlon of energyţ ln 2007 1oyoLa lnLroduced a flex fuel vehlcle ln Lhe
8razlllan markeL LhaL wlll run on 100Ʒ bloŴeLhanol fuelŦ lrom Lhls polnL onţ based on Lhe
phllosophy of provldlng ºLhe rlghL carţ ln Lhe rlghL placeţ aL Lhe rlghL Llmeţ" and ln accordance
wlLh Lhe lnfrasLrucLure and cusLomer needs of each reglonţ 1oyoLa wlll conLlnue Lo promoLe
efforLs Lo develop envlronmenLally frlendly Lechnology and vehlcles


LGMLN1A1ICN

1oyoLa's mosL slgnlflcanL buslness segmenL ls lLs auLomoLlve operaLlonsŦ 1oyoLa carrles
ouL lLs auLomoLlve operaLlons as a global compeLlLor ln Lhe worldwlde auLomoLlve markeLŦ
ManagemenL allocaLes resources Loţ and assesses Lhe performance ofţ lLs auLomoLlve
operaLlons as a slngle buslness segmenL on a worldwlde baslsŦ 1oyoLa does noL manage any
subseL of lLs auLomoLlve operaLlonsţ such as domesLlc or overseas operaLlons or parLsţ as
separaLe managemenL unlLsŦ
1he managemenL of Lhe auLomoLlve operaLlons ls allgned on a funcLlonal basls
wlLh managers havlng overslghL responslblllLy for Lhe ma[or operaLlng funcLlons wlLhln Lhe
segmenLŦ ManagemenL assesses flnanclal and nonŴflnanclal daLa such as unlLs of saleţ unlLs of
producLlonţ markeL share lnformaLlonţ vehlcle model plans and planL locaLlon cosLs Lo allocaLe
resources wlLhln Lhe auLomoLlve operaLlonsŦ













1C¥C1A INDIA


As a [olnL venLure beLween klrloskar Croup and 1oyoLa MoLor CorporaLlonţ 1oyoLa
klrloskar MoLor ÞrlvaLe LlmlLed (1kM) alms Lo play a ma[or role ln Lhe developmenL of Lhe
auLomoLlve lndusLry and Lhe creaLlon of employmenL opporLunlLlesţ noL only Lhrough lLs dealer
neLworkţ buL also Lhrough anclllary lndusLrlesŦ

1kMƌs growLh slnce lncepLlon can be aLLrlbuLed Lo one slmpleţ yeL lmporLanL aspecL of lLs
buslness phllosophy Ŵ ƍÞutt|ng Customer I|rstƍŦ Whlle managlng growLhţ 1kM has malnLalned
lLs commlLmenL Lo provlde quallLy producLs aL a reasonable prlce and has made every efforL Lo
meeL changes ln cusLomer needsŦ

1kM flrmly belleves LhaL Lhe success of Lhls venLure depends on provldlng hlgh quallLy
producLs and servlces Lo all valued cusLomers Lhrough Lhe efforLs of lLs Leam membersŦ

1kMţ along wlLh lLs dedlcaLed dealers and suppllersţ has adopLed Lhe ƍCrowlng 1ogeLherƍ
phllosophy of lLs parenL company 1MC Lo creaLe longŴLerm buslness growLhŦ ln Lhls wayţ 1kM
alms Lo furLher conLrlbuLe Lo progress ln Lhe lndlan auLomoLlve lndusLryţ reallze greaLer
employmenL opporLunlLles for local clLlzensţ lmprove Lhe quallLy of llfe of Lhe Leam members
and promoLe robusL economlc acLlvlLy ln lndlaŦ

All 1oyoLa employees are expecLed Lo embody Lhese values ln Lhelr dally workţ lncludlng
envlronmenLal proLecLlon acLlvlLlesŦ 1o ƍrespecLƍ Lhe envlronmenLţ we go Lo Lhe source Lo
ldenLlfy and analyze problems (ƍCenchl CenbuLsuƍ)ţ move forward Lo ƍchallengeƍ convenLlonal
ldeas and old hablLsţ Lo lmprove furLher (ƍkalzenƍ) Lhrough ƍLeamworkŦƍ
1he framework provlded by 1he 1oyoLa Way enables our company Lo respond Loţ
among oLher Lhlngsţ Lhe envlronmenLal challenges aL varlous sLages of Lhe llfeŴcycle of a
vehlcleŦ 1hese lnclude greenhouse gas emlsslonsţ wasLe reducLlonţ lncreased recycllng and Lhe
bannlng of hazardous subsLance use ln parLs and componenLsŦ 1hese challenges wlll have
lnevlLable consequences for 1oyoLaƌs organlzaLlon and employeesţ and we musL balance Lhem
wlLh our deslre for fuLure growLhŦ ln 1992ţ Lhe 1oyoLa Culdlng Þrlnclples were esLabllshed ln
dlrecL response Lo Lhe lnLernaLlonal lnlLlaLlves agreed Lo aL Lhe 8lo ƌLarLh SummlLŦƌ 1hls summlL
focused on Lhe poLenLlal for a clash beLween Lrade and envlronmenLal rulesţ and resulLed ln a
sLaLemenL of prlnclples abouL foresL managemenLţ conservaLlon and susLalnable developmenLŦ
1he 1oyoLa Culdlng Þrlnclples are a cornersLone of our corporaLe managemenL
phllosophyŦ 1hese prlnclples were updaLed ln 1997ţ Lo ensure Lhey conLlnue Lo provlde 1oyoLa
wlLh a clear paLh Lowards achlevlng susLalnable developmenLŦ
1hese prlnclples have been explored and developed ln 1oyoLaƌs Clobal vlslon 2010ţ
adopLed ln Aprll 2002ţ whlch proposes a serles of longŴLerm pollcles on Lhe Lheme of
ƍlnnovaLlon lnLo Lhe luLureŦƍ 1oyoLaƌs Clobal vlslon 2010 guldes managemenL ln lLs response Lo
longŴLerm soclal changesţ comblnlng conslderaLlon for Lhe envlronmenLţ Lhe beneflL Lo our
cusLomers of valueŴadded producLs and Lhe encouragemenL of our employees Lhrough shared
prosperlLy and soclal lnvolvemenLŦ
8ased on Lhe Culdlng Þrlnclplesţ whlch codlfy 1oyoLaƌs buslness splrlLţ Lhe 1oyoLa LarLh
CharLer (adopLed ln 1992 and revlsed ln 1997) embodles a comprehenslve approach Lo global
envlronmenLal lssuesŦ lL ouLllnes 1oyoLaƌs baslc pollcy and acLlon guldellnes Lowards effecLlve
envlronmenLal managemenL and lmprovemenLsŦ 1he 1oyoLa LarLh CharLer underllnes a
commlLmenL Lo envlronmenLal excellenceţ noL only Lhrough broad prlnclplesţ buL ln concreLe
examples of whaL can be done Lhrough acLlon guldellnesŦ ln connecLlon wlLh Lhe 1oyoLa
Culdlng Þrlnclples and Lhe 1oyoLa LarLh CharLerţ a Luropean LnvlronmenLal Þollcy was
developed as a means of llnklng prlnclplesţ goalsţ LargeLs and acLlon plans wlLh managemenL
sLrucLures and sysLemsŦ


Þursu|ng the greater good
8ecognlLlon
AL 1kMţ Lhey look Lo conLlnuously lmprove noL only Lhelr producLs buL also Lhelr
processes and servlceŦ 1helr obsesslon wlLh perfecLlon has been recognlsed by varlous
lnsLlLuLlons such as !u Þower and 1nS AuLomoLlveţ as well as auLomoLlve publlcaLlons llke
Cverdrlveţ as Lhe reason for Lhe success of 1oyoLa producLs ln lndla and across Lhe globeŦ
Local CommunlLy uevelopmenL
AL 1kMţ every efforL ls made Lo conLrlbuLe Lo socleLyŦ A resldenLlal school aL 8ldadlţ
reconsLrucLed by 1oyoLaţ now houses 73 sLudenLsţ malnly belonglng Lo backward communlLlesŦ
ln Lhe afLermaLh of Lhe Lraglc earLhquake ln Cu[araLţ 1kM and lLs dealers played a ma[or role ln
dlsLrlbuLlng foodţ cloLhlng and rellef ln remoLe affecLed areaŦ 1kM also Lakes a lead role ln
conLrlbuLlng Lo Lhe communlLyţ dlsLrlbuLlng books and bags ln local school eLcŦ
DLVLLCÞING ÞkCDUC1 IkCM 1nL CU1CMLk' ÞLkÞLC1IVL IN
INDIA' nIGnŴGkCW1n MAkkL1

1C¥C1A' ÞCI1ICN IN INDIAN MAkkL1
ln Lhe lndlan markeL ln Lhe second half of 2008ţ auLomoLlve manufacLurers launched
new models ln Lhe 8ŴsegmenL (subcompacL)ţ lncreaslng Lhe percenLage of Lhls segmenL ln Lhe
passenger vehlcle markeLŦ As a class of vehlcles poslLloned Lo aLLracL new cusLomersţ 8Ŵ
segmenL or smaller vehlcles are expecLed Lo conLlnue Lo play an lmporLanL role ln Lhe markeLŦ
1oyoLa has esLabllshed an lmage as a LopŴname brand ln lndla because of Lhelr achlevemenL of
advanced levels of quallLyţ durablllLy and rellablllLy (Cu8) wlLh models such as Lhe Corollaţ
Camryţ lnnovaţ lorLuner and Land CrulserŦ Poweverţ unLll nowţ 1oyoLa dld noL offer enLryŴlevel
vehlcles for lndlan cusLomersŦ 1hls was whaL led Lo 1oyoLa's developmenL of a compacL vehlcle
LhaL soughL Lo provlde hlgh Cu8 sLandards aL an affordable prlceŦ
ɿIorecast of Veh|c|e Market |n Ind|a (1000 of un|ts)

ɿa|es Iorecast of 1oyota Veh|c|es (1000 of un|ts)
0
1000
2000
3000
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7000
A SegmenL 8 segmenL
haLchback
8 segmenL
Sedan
CLhers Commerclal
vehlcles
2013
2012
2011
2010
2009
2008

DA1A CCMÞILLD 8¥ 1MC

0
30
100
130
200
230
300
330
LLlos lnnova Carolla lorLuner CLhers
2013
2012
2011
2010
2009
2008