1. Introduction
Toyota is one of the world's largest automobile manufacturers, selling over 9 million models in 2006¹ on all five
continents. A Top 10 Fortune Global 500² enterprise, Toyota ranks among the world's leading global corporations and is
proud to be the most admired automaker³, an achievement the company believes stems from its dedication to customer
satisfaction.Toyota has been shaped by a set of values and principles that have their roots in the company's formative
years in Japan.
The Toyota story begins in the late 19th century, when Sakichi Toyoda invented Japan’s first power loom, which was to revolutionize the country’s textile
industry. In January 1918, Sakichi founded the Toyoda Spinning & Weaving Company, and with the help of his son, Kiichiro Toyoda, he fulfilled his lifelong
dream of building an automatic loom in 1924. Two years later, he established Toyoda Automatic Loom Works.
Like his father, Kiichiro was an innovator, and during his visits to Europe and the U.S. in the 1920s, he became deeply interested in the nascent
automotive industry. Making the most of the £100,000 that Sakichi Toyoda received for selling the patent rights of his automatic loom, Kiichiro laid the
foundations of Toyota Motor Corporation (TMC), which was established in 1937. From looms to cars, the Toyota experience has been shaped by extending
the boundaries of manufacturing.
¹ Including Hino and Daihatsu
² As published in the 2006 edition of Fortune magazine
³ As published in the 2006 edition of Fortune magazine
The Toyota Production System
Toyota’s approach to automobile production, with its inherent quality controls, revolutionized the industry. Its “just-in-
time” supply-chain concept has become a model for manufacturers around the world, and not just for automakers.
The Toyota Production System (TPS) calls for the end product to be “pulled” through the system. This means the right
parts reach the assembly line at the right place, just as they are needed, and with no excess.
This approach represented a radical departure from conventional manufacturing systems, which require large inventories
in order to “push” as much product as possible through production lines, regardless
of actual demand. The idea of TPS, the contrary, is to produce only the products required in the precise quantities desired
at a given point in time
Focus on flexibility
By basing production on demand rather than simply on capacity, Toyota manages to keep inventories, both of parts and of finished goods, to a strict
minimum. But this is only one of the more obvious advantages of Toyota’s unconventional approach. By focusing on smaller production lots and producing
only what customers require when they require it, Toyota has developed a flexibility and responsiveness that continues to set the

2. standard for the industry. With its Attention to continuous improvement (Kaizen), Toyota has attained die-changeover and machine-set times that are a
fraction of its competitors'.Thus its capacity for reacting quickly to new market trends makes TPS an ideal system in today’s rapidly changing global
business environment.
Just as important is ensuring quality control, and the delivery of reliable and dependable products to customers. If a problem arises at any stage of
production, Toyota’s automatic error detection system, called “Jidoka”, flags the defect and enables line employees to take the necessary steps to resolve
it on the spot – even if that means bringing production to a halt. By calling attention to the equipment when an error first occurs, the Toyota system
makes it easier to identify the source of the problem and prevents defects from progressing to subsequent stages of production. Only a system as agile
and quality-oriented as TPS could make such measures economically possible.
This approach not only helps eliminate waste, which makes TPS more respectful of the environment, it also means that customers can rest assured that
Toyota products will conform to the highest standards of quality, reliability and durability.
Future Vision
Toyota and other manufacturers have an unprecedented opportunity to shape the future direction of motor sport in a new
era of social awareness. Improving motor sport’s environmental image is top of the agenda. As an example, the 2009 FIA
technical regulations should include means to promote fuel efficiency, including waste energy recovery and re-use.
Another important area is safety, a key project in Toyota research and development centre programmes. While much has
been done in the past decade to improve driver security, more can be accomplished for a greener motor sport.
Greening motor sports
Longer term could see completely new engines for motor sport competition, possibly featuring turbocharged designs. Biofuel could also be a future option.
And as the leader in Hybrid Synergy Drive®, Toyota is excited by the possibility of applying them to motor sport.
Some purists argue that the new direction is not what motor sport is about. But automotive technology has always advanced. A car in a showroom today
has equal or better performance than a car of five years ago, but uses only 60% of the fuel.
Driver safety
Formula 1 has already demonstrated the great advances that can be made with safety. At the start of 2007, Tsutomu Tomita, former chairman and team
principal of Panasonic Toyota Racing, presented a Toyota TF105 to the FIA Institute at the inaugural FIA Institute Safety Summit. The car will be used as a
training tool for medical and safety officials to improve the techniques of driver extrication following accidents in single-seater racing.
Recently, Toyota has developed a computer simulation which recreates high-speed accidents and their effects on the human body. Using the new system,
called Total Human model Safety (THUMS), the FIA Institute and Toyota have been able to study the kind of serious injuries that are difficult to measure
with conventional crash-test dummies. The technology will notably help study high-speed rear impact crashes in the FIA Formula 1.

3. Toyota Mission Statement
"To sustain profitable growth by providing the best
customer experience and dealer support
Toyota Kirloskar Motor Pvt. LTD
Date Of Establishment October 6, 1997
Chairman Mr. Mitsuhiro Sonoda
Vice Chairman Mr. Vikram S Kirloskar
Managing Director Mr. H. Nakagawa
Deputy MD's Mr. Sandeep Singh
Mr. S. Tomonaga
DMD, Commercial Mr. Shekar Viswanathan
Paid-In Capital Rs. 7 billion
Shareholders Toyota Motor Corporation (89% equity)
Kirloskar Group (11% equity)
Empowering employees.... to achieve perfection
TKM firmly believes that employees are the main source of strength for the organisation. The human resources management in Toyota seeks to create a
corporate culture where values such as "Continuous Improvement" and "Respect for People" are fully reflected in all actual corporate and individual
activities. The company takes maximum care to ensure stability of employment and strives to improve working conditions.

4. To develop human resources and improve the technical skills of its employees, TKM's young team members are regularly sent to Japan, Indonesia and
Taiwan for training programs. More than 425 team members have benefited from such programs at various Toyota plants worldwide. TKM also believes in
continuously improving its products and practices. Every team member is encouraged to give suggestions to improve the product, efficiency of processess
or working conditions. They are also appropriately rewarded for the same. Thus TKM seeks to progess by empowering its employees.
Pursuing the greater good
Technology
Toyota is a world leader in the research and development of advanced automobile technology. Creating intelligent solutions for today's mobility challenges
and taking responsibility for future generations. That's the mission that motivates Toyota.
Innovation
The quest for innovation is the foundation for Toyota's new technology concepts. Unconventional ideas need room for creativity and the technologies of the
future need testing in real-life conditions. This is why Toyota develops concept cars such as p.o.d or FXS. Take a look at Toyota's most recent concept cars
and get a first glimpse of the vehicles which may, one day, satisfy the needs of tomorrow's drivers.
Engines
Engine technology is one of Toyota's greatest assets. Toyota's award-winning engine range reflects the high design and quality standards
set by its engineers. Toyota engines are developed for performance and responsiveness with a big focus on reducing emissions and saving
fuel. Today Toyota brings these benefits to customers with advanced variable valve technology (VVT-i) petrol engines, common-rail turbo
diesels (D-4D), and with the unique Toyota Hybrid System (THS).
Safety
Safety is a top priority for Toyota: Advanced steering, braking and traction control technologies help keep your Toyota on the road and out
of trouble. In addition, every new Toyota model is carefully designed to maximise safety, using computer simulations
and real-life crash tests. The body and chassis are built to absorb impact and provide maximum occupant protection, whilst SRS airbags in place in case of
a collision. Hopefully you'll never see our safety features in action, but you’ll feel the confidence every time you sit behind the wheel.
SWOT Analysis Toyota

5. Strengths.
• New investment by Toyota in factories in the US and China saw 2005 profits rise,
against the worldwide motor industry trend. Net profits rose 0.8% to 1.17 trillion
yen ($11bn; £5.85bn), while sales were 7.3% higher at 18.55 trillion yen.
Commentators argue that this is because the company has the right mix of
products for the markets that it serves. This is an example of very focused
segmentation, targeting and positioning in a number of countries.
• In 2003 Toyota knocked its rivals Ford into third spot, to become the World's
second largest carmaker with 6.78 million units. The company is still behind
rivals General Motors with 8.59 million units in the same period. Its strong
industry position is based upon a number of factors including a diversified
product range, highly targeted marketing and a commitment to lean
manufacturing and quality. The company makes a large range of vehicles for both
private customers and commercial organizations, from the small Yaris to large
trucks. The company uses marketing techniques to identify and satisfy customer
needs. Its brand is a household name. The company also maximizes profit through
efficient manufacturing approaches (e.g. Total Quality Management).
Weaknesses
• Being big has its own problems. The World market for cars is in a condition of
over supply and so car manufacturers need to make sure that it is their models that
consumers want. Toyota markets most of its products in the US and in Japan.
Therefore it is exposed to fluctuating economic and political conditions those
markets. Perhaps that is why the company is beginning to shift its attentions to the
emerging Chinese market. Movements in exchange rates could see the already
narrow margins in the car market being reduced.
• The company needs to keep producing cars in order to retain its operational
efficiency. Car plants represent a huge investment in expensive fixed costs, as
well as the high costs of training and retaining labourSo if the car market
experiences a down turn, the company could see over capapacity. If on the other
hand the car market experiences an upturn, then the company may miss out on
potential sales due to under capacity i.e. it takes time to accommodate. This is a
typical problem with high volume car manufacturing.
•
Opportunities.
• Lexus and Toyota now have a reputation for manufacturing environmentally
friendly vehicles. Lexus has RX 400h hybrid, and Toyota has it Prius. Both are
based upon advance technologies developed by the organization. Rocketing oil
prices have seen sales of the new hybrid vehicles increase. Toyota has also sold
on its technology to other motor manufacturers, for example Ford has bought into
the technology for its new Explorer SUV Hybrid. Such moves can only firm up
Toyota's interest and investment in hybrid R&D.

6. • Toyota is to target the 'urban youth' market. The company has launched its new
Aygo, which is targeted at the streetwise youth market and captures (or attempts
to) the nature of dance and DJ culture in a very competitive segment. The vehicle
itself is a unique convertible, with models extending at their rear! The narrow
segment is notorious for it narrow margins and difficulties for branding.
Threats.
• Product recalls are always a problem for vehicle manufacturers. In 2005 the
company had to recall 880,00 sports utility vehicles and pick up trucks due to
faulty front suspension systems. Toyota did not g ive details of how much the
recall would cost. The majority of affected vehicles were sold in the US, while the
rest were sold in Japan, Europe and Australia.
• As with any car manufacturer, Toyota faces tremendous competitive rivalry in the
car market. Competition is increasing almost daily, with new entrants coming into
the market from China, South Korea and new plants in Eastern Europe. The
company is also exposed to any movement in the price of raw materials such as
rubber, steel and fuel. The key economies in the Pacific, the US and Europe also
experience slow downs. These economic factors are potential threats for Toyota.

7. Toyota facToyota faces fierce competition from all angles, and is facing a very tough
market from other Japanese, American, South Korean and German auto manufacturers.
Toyota is working hard to set itself apart from the competition in more than one way,
however. Since Toyota products have a reputation for reliability, the resale value of their
vehicles tends to be much higher than many other producers. The most serious threat to
Toyota is widely considered to be Honda Motor company. However, Toyota has done
some substantial work on their products and price points to stay competitive against
Honda. Below are some comparisons between Honda and Toyota products, and the price
points for a base product, and fully loaded.an more than one way, however. Since Toyota
products have a reputation for reliability, the resale value of their vehicles tends to be
tConsistently, Honda seems to match Toyota on the lower levels of
price, but on higher priced an equipped models, the prices on Honda
vehicles seem to be substantially higher than on comparable Toyota
products. This would seem to favor Toyota, giving them a better image
of Value and a better price on the same top quality merchandisea is
widely considered to be Honda Motor company. However, Toyota has
done some substantial work on their products and price points to stay
competiti Toyota Conclusion
Toyota is making a product that is both good for the society/environment and
practical at the same time. It is practical in that there is a demand for it and that Toyota
presumably is making money or will make money on the product. Toyota is also looking
towards further development of the engine, possibly combining an alternate fuel source

8. other that gasoline with the electric component. I believe that Toyota is acting as a social
entrepreneur with these lines of cars. They are providing a service to humanity and the
environment while also presumably sustaining a business. According to James Brook of
the New York Times, Toyota has claimed that it reached the break-even point for its
profitability on its hybrid models, but industry experts in Tokyo find it impossible to
know exactly how profitable these cars I believe that Toyota is acting as a social
entrepreneur with these lines of cars. They are providing a service to humanity and the
environment while also presumably sustaining a business. According to James Brook of
the New York Times, Toyota has claimed that it reached the break-even point for its
profitability on its hybrid models, but industry experts in Tokyo find it impossible to
know exactly how profitable these cars
ve against Honda. Below are some comparisons between Honda and
Toyota products, and the price poin
ts for a base product, and fully loaded.