Introduction of Toyota:

Toyota Motor Corporation is a Japanese multinational automotive manufacturer headquartered

in Toyota, Aichi, Japan. Toyota is the world's market leader in sales of hybrid electric vehicles,
and one of the largest companies to encourage the mass-market adoption of hybrid vehicles across
the globe. Toyota is listed on the London Stock Exchange, New York Stock Exchange and Tokyo
Stock Exchange. In 2017, Toyota's corporate structure consisted of 364,445 employees worldwide
and, as of September 2018, was the sixth-largest company in the world by revenue. As of 2017,
Toyota is the largest automotive manufacturer. Toyota was the world's first automobile
manufacturer to produce more than 10 million vehicles per year which it has done since 2012,
when it also reported the production of its 200-millionth vehicle. As of July 2014, Toyota was the
largest listed company in Japan by market capitalization and by revenue.
Toyota is also a market leader in hydrogen fuel-cell vehicles. Cumulative global sales of Toyota
and Lexus hybrid passenger car models achieved the 10 million milestone in January 2017.
Its Prius family is the world's top-selling hybrid nameplate with over 6 million units sold
worldwide as of January 2017.
The company was founded by Kiichiro Toyoda in 1937, as a spinoff from his
father's company Toyota Industries to create automobiles. Three years earlier, in 1934, while still
a department of Toyota Industries, it created its first product, the Type A engine, and its first
passenger car in 1936, the Toyota AA. Toyota Motor Corporation produces vehicles under five
brands, including the Toyota brand, Hino, Lexus, Ranz, and Daihatsu. It also holds a 16.66% stake
in Subaru Corporation, a 5.9% stake in Isuzu until 2018, a 5.5% stake in Mazda, as well as joint-
ventures with two in China (GAC Toyota and Sichuan FAW Toyota Motor), one in India (Toyota
Kirloskar), one in the Czech Republic (TPCA), along with several "nonautomotive" companies.
TMC is part of the Toyota Group, one of the largest conglomerates in Japan.
Toyota is headquartered in Toyota City, Aichi. The main headquarters of Toyota is located in a
four-story building in Toyota. As of 2006, the head office has the "Toyopet" Toyota logo and the
words "Toyota Motor". The Toyota Technical Center, a 14-story building, and the Honsha plant,
Toyota's second plant engaging in mass production and formerly named the Koromo plant, are
adjacent to one another in a location near the headquarters.
In 2013, company head Akio Toyoda reported that it had difficulties retaining foreign employees
at the headquarters due to the lack of amenities in the city.
Presidents of Toyota Motor Company:
 Rizaburo Toyoda (1937–1941)
 Kiichiro Toyoda (1941–1950)
 Taizo Ishida (1950–1961)
 Fukio Nakagawa (1961–1967)
 Eiji Toyoda (1967–1982)
In 1981, Toyota Motor Co., Ltd. announced plans to merge with its sales entity Toyota Motor
Sales Co., Ltd. Since 1950, the two entities had existed as separate companies as a prerequisite for
reconstruction in postwar Japan. Shoichiro Toyoda presided over Toyota Motor Sales in
preparation for the consummation of the merger that occurred in 1982. Shoichiro then succeeded
his uncle Eiji as the president of the combined organization that then became known as Toyota
Motor Corporation.
Presidents of Toyota Motor Corporation:
 Eiji Toyoda (1981)
 Shoichiro Toyoda (1982–1992)
 Tatsuro Toyoda (1992–1995)
 Hiroshi Okuda (1995–1999)
 Fujio Cho (1999–2005)
 Katsuaki Watanabe (2005–2009)
 Akio Toyoda (2009–present)
Chairmen of Toyota Motor Corporation:
 Shoichiro Toyoda (1992–1999)
 Hiroshi Okuda (1999–2006)
 Fujio Cho (2006–2013)
 Takeshi Uchiyamada (2013–present)
As reported on its consolidated financial statements, Toyota has 606 consolidated subsidiaries and
199 affiliates.
 Toyota Motor North America (100% – 2004)
 Toyota Canada Inc. (51% – 2013)
 Toyota Tsusho – Trading company for the Toyota Group
  Daihatsu Motor Company (100%)
 Hino Motors (50.1% – 2001)
 Lexus 100% (1989)
 Scion 100% (2003)
 DENSO (24.74% – September 30, 2006)
 Toyota Industries (23.51% – March 31, 2006)
 Aisin Seiki Co. (23.0% – September 30, 2006)
 Subaru Corporation (16.66% – June 28, 2008)
 Isuzu Motors (5.9% – November 10, 2006)
 PT Toyota Astra Motor (50% – 2017)
 Noble Automotive (23% – 2014)
 PT Toyota Motor Manufacturing Indonesia (95% – 2003)
History:
1920s-1930s:
 In 1924, Sakichi Toyoda invented the Toyoda Model G Automatic Loom.
 In 1929, the patent for the automatic loom was sold to the British company Platt Brothers.
 The production of Toyota automobiles was started in 1933.
 Its first vehicles were the A1 passenger car and the G1 truck in 1935.
 The Toyota Motor Company was established as an independent company in 1937.
 In April 1936, Toyoda's first passenger car, the Model AA, was completed.
 In September 1936, the company ran a public competition to design a new logo.
 The newly formed word was trademarked and the company was registered in August 1937
as the Toyota Motor Company.
1940s-1950s:
 From September 1947, Toyota's small-sized vehicles were sold under the name "Toyopet".
 When Toyota eventually entered the American market in 1957 with the Crown, the name
was not well received due to connotations of toys and pets.
 The name was soon dropped for the American market, but continued in other markets until
the mid-1960s.
1960s-1970s:
  By the early 1960s, the US had begun placing stiff import tariffs on certain vehicles.
 In response to the tariff, Toyota, Nissan Motor Co. and Honda Motor Co. began building
plants in the US by the early 1980s.
1980s-1990s:
 Toyota received its first Japanese Quality Control Award at the start of the 1980s.
 Due to the 1973 oil crisis, consumers in the lucrative US market began turning to making
small cars with better fuel economy.
 In 1982, the Toyota Motor Company and Toyota Motor Sales merged into one company,
the Toyota Motor Corporation.
 Two years later, Toyota entered into a joint venture with General Motors called the New
United Motor Manufacturing, Inc, NUMMI, operating an automobile-manufacturing plant
in Fremont, California.
 Toyota then started to establish new brands at the end of the 1980s, with the launch of their
luxury division Lexus in 1989.
 In the 1990s, Toyota began to branch out from producing mostly compact cars by adding
many larger and more luxurious vehicles to its lineup, including a full-sized pickup,
the T100 (and later the Tundra), several lines of SUVs, a sport version of the Camry, known
as the Camry Solara.
 In 1999, the company decided to list itself on the New York and London Stock Exchanges.
2000s-2010s:
 In 2001, Toyota's Toyo Trust and Banking merged with two other banks to form UFJ Bank,
which was accused of corruption by Japan's government for making bad loans to
alleged Yakuza crime syndicates with executives accused of blocking Financial Service
Agency inspections.
 In 2002, Toyota managed to enter a Formula One works team and establish joint ventures
with French motoring companies Citroën and Peugeot a year after Toyota started producing
cars in France.
 A youth-oriented marque for North America, Scion, was introduced in 2003.
 Toyota ranked eighth on Forbes 2000 list of the world's leading companies for the year
2005 but slid to 55th for 2011. The company was number one in global automobile sales
for the first quarter of 2008.
 In 2007, Toyota released an update of its full-sized truck, the Tundra, produced in two
American factories, one in Texas and one in Indiana.
 Motor Trend named the Tundra "Truck of the Year", and the 2007 Toyota Camry "Car of
the Year" for 2007.
 In 2011, Toyota, along with large parts of the Japanese automotive industry, suffered from
a series of natural disasters.
 The 2011 Tōhoku earthquake and tsunami led to a severe disruption of the supplier base
and a drop in production and exports.
 Severe flooding during the 2011 monsoon season in Thailand affected Japanese
automakers that had chosen Thailand as a production base.
 Toyota is estimated to have lost production of 150,000 units to the tsunami and production
of 240,000 units to the floods.
 On February 10, 2014, it was announced that Toyota would cease manufacturing vehicles
and engines in Australia by the end of 2017.
 The company plans to consolidate its corporate functions in Melbourne by the end of 2017.
 Both Ford Motor Company and General Motors (Holden) followed suit, ending Australian
production in 2016 and 2017 respectively.
 The automaker narrowly topped global sales for the first half of 2014, selling 5.1 million
vehicles in the six months ending June 30, 2014, an increase of 3.8% on the same period
the previous year.
 In August 2014, Toyota announced it would be cutting its spare-parts prices in China by
up to 35%.
 In November 2015, the company announced that it would invest US$1 billion over the next
5 years into artificial intelligence and robotics research.
 In 2016, Toyota invested in Uber.
 In March 2016, Toyota partnered with Yanmar to create a fiberglass pleasure boat using
Yanmar outboard marine diesel engines or Toyota inboard engines.
  On August 27, 2018, Toyota announced an investment of $500 Million
in Uber's autonomous cars.
Toyota in Pakistan: (Toyota Indus Motor)
Indus Motor Company Limited (IMC) is a joint venture between certain companies of House of
Habib of Pakistan, Toyota Motor Corporation and Toyota Tsusho Corporation of Japan.
Incorporated in 1989, the Company manufactures and markets Toyota brand vehicles in Pakistan.
These include several variants of the flagship ‘Corolla’ in the passenger car segment, ‘Hilux’ in
the light commercial vehicle segment and ‘Fortuner’ in Sports Utility Vehicle segment.
IMC’s manufacturing facility and offices are located at a 107 acre site in Port Qasim, Karachi. The
product is delivered to end customers nationwide through a strong network of 46 independent 3S
Dealerships spread across the country.
Over 29 years, since inception, IMC has sold more than 875,000 CBU/CKD vehicles. It has also
demonstrated impressive growth in terms of volumetric increase. From a modest beginning of 20
vehicles per day production in 1993, daily production of the Company has now increased to 268
(with overtime) units per day in 2018-19. This has been made possible through the development
of human talent embracing the ‘Toyota Way’ of quality and lean manufacturing.
In this period, IMC has made large scale investments in enhancing its own capacity and in meeting
customer requirements for new products. Corolla is, today, the largest selling automotive brand
model in Pakistan. This country is the highest Corolla-selling nation in the Asia-Pacific region and
also has the distinction of being # 1 in Toyota’s Asian market.
The Company has a workforce of 3,349 persons at year end. It invests heavily in training the
team members and management employees and creating a culture of high performing and
empowered teams who work seamlessly across the various processes in search of quality and
continuous improvement.
IMC employees are encouraged to pursue high standards of business ethics and safety according
to the core values of the Company; they communicate candidly by giving bad news first and extend
respect to people. Employees rate IMC high on work environment and level of job satisfaction as
per the bi-annual TMC morale survey.
IMC has played a major role in the development of the entire value chain of the local auto industry.
It is also proud to have contributed in poverty alleviation at the grass root level by nurturing
localization. This, in turn, has directly created thousands of job opportunities and transferred
technology to over 46 vendors supplying parts. The Company is also a major tax payer and
significant contributor to the Government’s exchequer.
Toyota Indus Plants in Pakistan:
IMC’s manufacturing facility and offices are located at a 107 acre site in Port Qasim, Karachi. The
product is delivered to end customers nationwide through a strong network of 46 independent 3S
Dealerships spread across the country.
From a modest beginning of 20 vehicles per day production in 1993, daily production of the
Company has now increased to 268 (with overtime) units per day in 2018-19.
This country is the highest Corolla-selling nation in the Asia-Pacific region and also has the
distinction of being # 1 in Toyota’s Asian market.
Products offered in Pakistan:
 Corolla
 Prius
 Camry
 Hybrid
 Avanza
 Rush
 Fortuner
 Revo
 Hilux E
 Hilux Single Cabin
 Land Cruiser Prado
 Land Cruiser
 Hiace Deluxe
 Hiace
 Coaster
Manufacturing process:
The manufacturing process includes the three phases. The three phases are performed in the
production department.
 Welding
  Painting
 Assembling
Labor force:
3349 employees or labors are working in the production department. The hour’s wise wages are
offered to the employees.
Direct labor:
3200 labors are working in this department or directly working on the assembly line while
manufacturing cars.
Labor cost:
1 labor cost = Rs 89.5 per hour
For 3200 labors = Rs 286,400
Indirect labor:
These indirect labor includes 149 employees that are.
 Engineers
 Supervisors
 Department head
 Managers
Labor cost:
1 labor cost = Rs. 89.5 per hour
149 labor = Rs. 13,335.5
Direct material cost:
Rs. 123,494,196,000
Indirect material cost:
Rs. 6,546,464,140

Factory overhead:
Rs. 6,174,163,140
 Toyota Indus Motor
Cost of Goods Sold
Direct material Rs. 123,494,196,000
Net purchases 123,494,196,000
Direct labor 2,474,496,000
Factory overhead 6,174,163,140
Indirect material 6,546,464,140
Indirect labor 115,218,720
Total material cost Rs.138,804,538,000
Opening inventory 0
Cost of goods sold Rs. 138,804,538,000

Per unit cost:

65,346 units produced.
Cost = 138,804,538,000
Per unit cost = 138,804,538,000/65346 = 2124147.43
 Toyota Indus Motor
Income Statement
Net Sales Rs. 157,996,212,000
Cost of sales (138,804,538,000)
Gross profit 19,191,674,000
Distribution expenses (1,403,611,000)
Administration expenses (1,410,033,000)
Other operating expenses (234,977,000)
Operating profit 16,143,053,000
Workers welfare fund (1,406,379)
14,736,674,000
Other income 4,306,662,000
19,043,336,000
Finance cost (67,407,000)
Profit before taxation 18,975,929,000
Taxation (5,260,954,000)
Profit after taxation 13,714,975,000

SWOT Analysis of Toyota Indus Motor:

Strengths:
 Largest manufacturing firm in world.
 Largest auto mobile firm.
 Product portfolio.
 Highest market share.
 Brand value.
 Largest selling brand in Pakistan
Weaknesses:
 High cost of employees.
 Lack of innovation.
  Product expansion.
 New products are launched after 3 years.
Opportunities:
 Product expansion in developing countries.
 Bring innovation in products.
 Increase efficiency of brakes.
 Introduce new products.
 Sustainability.
 Diversification.
Threats:
 Fuel prices.
 Government policies.
 Technology and skill enhancement.
 Competition.
 Taxation.
 Product oriented management.