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ANNUAL REPORT 2014
President’s MessagePresident’s Message
Overview of
Four Business Units
Overview of
Four Business Units
Special FeatureSpecial Feature
Review of OperationsReview of Operations
Consolidated Performance
Highlights
Consolidated Performance
Highlights
Management and
Corporate Information
Management and
Corporate Information
Investor InformationInvestor Information
Financial SectionFinancial Section
Page 7
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ContentsSearchPrint
Growth in emerging markets has been quite
volatile recently, but there is still huge poten-
tial for further growth. We need to take advan-
tage of this potential by introducing products
attuned to market needs in a timely way.
Meanwhile, governments in emerging markets
are moving to tighten fuel economy and safety
regulations, bringing them on par with
advanced economies. At Toyota, we must
identify and address the true needs of consum-
ers based on the situation and economic
condition of each country to promote motoriza-
tion and create ever-better cars.
Indonesia: a global production and
supply base
Toyota positions Indonesia as one of its major
global production and supply bases, and has
expanded annual production capacity there from
110,000 vehicles in 2012 to 250,000 vehicles in
2014. Toyota has begun exporting the Vios, its
first Indonesian-made sedan model designed for
export, to Singapore and Brunei followed by nine
countries in the Middle East. Last year, Toyota
exported 118,000 Indonesian-made vehicles to
more than 70 countries in Asia, Africa, Latin
America, and the Middle East. Toyota accounted
for more than 70% of the vehicles made in and
exported from Indonesia.
Indonesia is also an important engine produc-
tion and supply base for Toyota. Our bases in
Indonesia produce engines for the IMV* series of
vehicles: the Hilux pickup truck, Innova minivan,
and Fortuner. About 40% are exported to vehicle
factories in Asia, Latin America, and Africa. Toyota
recently began construction on a new engine
plant for standard passenger cars with the capac-
ity to manufacture 216,000 engines annually, and
plans to begin operations in 2016.
At the end of February 2014, Toyota also began
exporting Toyota-brand compact cars manufac-
tured at an Indonesian subsidiary of Daihatsu
Motor Co., Ltd., to the Philippines. This was the
first export model to receive certification under the
Indonesian government’s LCGC** program.
To address worsening traffic congestion in
Indonesia, 23 Toyota Group companies in
Indonesia worked with the Jakarta government,
the Embassy of Japan, and the Japan International
Cooperation Agency (JICA) on a project in
November 2013 to alleviate the traffic jams plagu-
ing Jakarta’s busy Mampang intersection. Road
work and construction was undertaken that
resulted in the length of the worst traffic jams being
cut about 77% (Source: Toyota Astra Foundation).
* IMV: Innovative International Multi-purpose Vehicle.
** LCGC: Low Cost Green Car, a government program to
promote the use of low-cost, high-fuel efficiency vehicles.
Vehicles certified under the program receive preferential tax
treatment.
Starting to produce hybrid powertrain units
in China
To deliver hybrid vehicles to more customers in
China, Toyota has been working to produce
hybrid units overseas—a first for Toyota—mainly
at Toyota Motor Engineering & Manufacturing
(China) Co., Ltd., which was completed in
November 2013. As a part of this initiative, Toyota
established a company to produce batteries and
another company to manufacture hybrid vehicle
transaxles, with plans to begin operations in
2015. In addition, Toyota is working to create a
production structure for major components, such
as inverters. Starting in 2015, we plan to use
these Chinese-made hybrid units in the Corolla
and Levin models produced and sold through
joint ventures with FAW Group Corporation and
Guangzhou Automobile Group Co., Ltd.
Supporting Toyota in Future Growth Markets
Ceremony to commemorate the start of Vios exports to the Middle East Vios Toyota Motor Engineering & Manufacturing (China) Co., Ltd.
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Overview of Four Business Units: Lexus International Toyota No. 1 Toyota No. 2 Unit Center