Toyota Motor Corporation (Toyota) and its associates primarily engages in the design, manufacture, and sale of sedans, minivans, compact cars, SUVs, trucks and related parts and accessories throughout the world.
In addition, Toyota and its associates provide financing, vehicle leasing, and certain other financial services primarily to its dealers and their customers to support the sales of vehicles and other products manufactured by Toyota and its associates.
Toyota primarily conducts busines...
Toyota Motor Corporation (Toyota) and its associates primarily engages in the design, manufacture, and sale of sedans, minivans, compact cars, SUVs, trucks and related parts and accessories throughout the world.
In addition, Toyota and its associates provide financing, vehicle leasing, and certain other financial services primarily to its dealers and their customers to support the sales of vehicles and other products manufactured by Toyota and its associates.
Toyota primarily conducts business in the automotive industry. Toyota also conducts business in finance and other industries.
Segments
Toyota’s business segments are automotive operations, financial services operations, and all other operations.
Toyota’s automotive operations include the design, manufacture, assembly, and sale of passenger vehicles, minivans, and commercial vehicles, such as trucks, and related parts and accessories.
Toyota’s financial services business consists primarily of providing financing to dealers and their customers for the purchase or lease of Toyota vehicles. Toyota’s financial services business also provides mainly retail installment credit and leasing through the purchase of installment and lease contracts originated by Toyota dealers. Related to Toyota’s automotive operations, Toyota is working towards having all of its vehicles become connected vehicles, creating new value and reforming businesses by utilizing big data obtained from those connected vehicles, and establishing new mobility services.
Toyota’s all other operations business segment includes the information technology-related businesses, including a web portal for automobile information called GAZOO.com.
Toyota sells its vehicles in approximately 200 countries and regions. Toyota’s primary markets for its automobiles are Japan, North America, Europe, and Asia.
Automotive Operations
Toyota produces and sells passenger vehicles, minivans, and commercial vehicles, such as trucks. The company’s subsidiary, Daihatsu, produces and sells mini-vehicles and compact cars. Hino, also a subsidiary of the company, produces and sells commercial vehicles, such as trucks and buses. Toyota also manufactures automotive parts, components, and accessories for its own use and for sale to others.
Vehicle Models and Product Development
Toyota’s vehicles (produced by Toyota, Daihatsu, and Hino) can be classified largely into electrified vehicles and conventional engine vehicles. Toyota’s product lineup includes subcompact and compact cars, mini-vehicles, mid-size, luxury, sports, and specialty cars, recreational and sport-utility vehicles, pickup trucks, minivans, trucks, and buses. Toyota’s luxury cars are sold in North America, Europe, Japan, and other regions, primarily under the Lexus brand name.
In fiscal 2023, Toyota launched the all-new Crown. While inheriting the Crown’s DNA of innovation and limit-pushing, it has been renewed as a flagship for a new era with four variations to meet the diverse values and lifestyles of customers. In addition to the ‘Crossover type,’ a new style that combines a sedan and an SUV, the ‘Sport’ offers a sporty driving experience with an enticing atmosphere and an easy-to-drive package. The ‘Sedan’ is a new formal design that meets the needs of chauffeurs, whereas the ‘Estate’ is a functional SUV with a mature atmosphere and ample driving space. The new series will be rolled out in about 40 countries and regions. Launched in 1997 as the world’s first mass-produced hybrid car, the Prius has driven uptake of HEVs as a new-generation eco-car with outstanding fuel efficiency; under the ‘Hybrid Reborn’ concept, the Prius was renewed as an exhilarating package that adds a design inspiring love at first sight and captivating driving performance to its core strength as an environmentally friendly car. For sportscars, the development of the GR Corolla, including a hydrogen engine-equipped GR Corolla designed to participate in the Super Taikyu endurance race series, has carried forth the torch of making ever-better motorsports-bred cars. In addition, the Lexus brand announced its first globally available pure BEV model, the all-new RZ. The new RZ marks Lexus’ transition into a BEV-centered brand, and embodies the unique Lexus vehicle design and driving experience brought on by advanced electrification technology.
In fiscal 2024, Toyota launched the all-new Alphard and Vellfire, which were developed from a concept of ‘the joy of comfortable mobility’ to create a space where everyone can share consideration and appreciation in all kinds of situations. To further contribute toward carbon neutrality, Toyota plans to introduce new PHEVs in the future. Moreover, a new model has been added to the Century series, which has been sold for more than half a century as a representative chauffeur-driven vehicle of Japan. It is a next-generation chauffeur-driven vehicle that inherits Japanese aesthetics, quietness, and hospitality, combines a human-centered approach, and dramatically evolves the rear-seat space to allow true comfort and elegant entry and exit. In Thailand, Toyota launched the Hilux Champ IMV 0, a new model of the IMV series. The pickup truck is regarded as a local favorite and integral to daily life in Thailand. Toyota decided to return to its origins and create an IMV pickup truck that meets the needs of customers. In addition, Toyota launched the all-new Lexus LBX. Redefining luxury with a stylishly compact size, it provides an engaging driving experience that instills a lasting desire to continue exploring the road ahead.
In fiscal 2025, Toyota launched the new Land Cruiser 250 Series. The 250 Series is a core Land Cruiser model that returns to the car’s origin, a vehicle that is simple and sturdy, and helps fulfill both customers’ lifestyle choices and practical needs. By pursuing dynamic styling and functionality so drivers can enjoy an active lifestyle, Toyota also created Crown Estate as a vehicle that embodies both the dignity and functionality of the Crown, what it calls a mature active cabin. The Camry, with its distinctive exterior, quality, and reliability, has remained a leading sedan in the U.S. for over 20 years according to the company’s estimates. For the Lexus brand, alongside master driver Akio Toyoda, Toyota developed the LBX MORIZO PR as a high-performance model that delivers the refined signature LEXUS driving quality and sophisticated design, enhancing the dialogue between driver and car, evokes spontaneous smiles, and provides an exhilarating out-of-the-ordinary experience.
Markets, Sales, and Competition
Toyota’s primary markets are Japan, North America, Europe, and Asia. The following table sets forth Toyota’s consolidated vehicle unit sales by geographic market for the periods shown. The vehicle unit sales below reflect vehicle sales made by Toyota to unconsolidated entities (recognized as sales under Toyota’s revenue recognition policy), including sales to unconsolidated distributors and dealers.
Japan
Japan is one of the leading countries with respect to technological innovation and improvements in the automotive industry and will continue to demonstrate such strength. Toyota strives to earn customer satisfaction by introducing products distinctive of Japan’s manufacturing ability, through the full lineup of Toyota brand vehicles, including not only passenger cars but also commercial and mini vehicles, as well as the advanced, premium Lexus brand. Furthermore, by advancing electrification centered on a multi-pathway strategy encompassing BEVs, PHEVs, FCEVs, and HEVs, dealers and manufacturers will work together to realize a carbon-neutral society. Toyota endeavors to secure and maintain its significant share of and position atop the Japanese market. Having 16 production sites in Japan, Toyota supports its operations worldwide through measures, such as the development of new technologies and products, low-volume vehicles to complement local production, production of global vehicle models which straddle multiple regions, and supporting overseas factories.
North America
The North American region is one of Toyota’s most significant markets. The United States, in particular, is the largest market in the North American region, accounting for 86% of Toyota’s retail sales in the region. In the region, Toyota has in recent years reorganized its production structure and made improvements to its product lineup. In addition, Toyota has a wide product lineup in every segment (excluding large trucks and buses).
Toyota’s North American production capacities include the production of vehicle models, such as the RAV4, Camry, Tacoma, and Highlander through 13 manufacturing entities.
In November 2021, Toyota created Toyota Battery Manufacturing, North Carolina (‘TBMNC’) as the first plant to produce automotive batteries for Toyota in North America. TBMNC started operations in February 2025. It will have 14 production lines, four which support battery production for HEVs and ten which support battery production for BEVs and PHEVs.
In June 2023, Toyota decided to assemble an all-new, three-row battery electric SUV at Toyota Motor Manufacturing Kentucky, Inc. (‘TMMK’) starting in 2026. The BEV will be powered by batteries from TBMNC. Further, in October 2023, Toyota decided to additionally invest in TBMNC and announced its plan to further strengthen production capability of BEV batteries and production of PHEV batteries. Toyota plans to sequentially add eight new battery production lines, with the aim of creating a total of ten BEV/PHEV battery lines, enabling the production of a total of more than 30GWh annually.
Toyota has five research and development centers in North America. As for vehicle development, the Toyota Technical Center spearheads the design, planning, and evaluation of vehicles and parts as to their ability to meet customer needs.
Europe
Toyota’s principal European markets are Germany, France, the United Kingdom, Italy, and Spain. In the European markets, as a full-lineup car manufacturer, Toyota aims to increase its global vehicle sales with a focus on electrified vehicles (HEVs, PHEVs, FCEVs, and BEVs) that suit the needs of customers and the circumstances of each region.
In terms of production, to strengthen its business setup so that it is less likely to be affected by exchange rates, Toyota produces models, such as the Corolla, Yaris, and C-HR locally through six entities in Europe. In addition, Toyota is actively promoting production and sales measures that meet local demand by strengthening its value chain, including used car dealerships, after-sales services, and finance and insurance services.
Asia
Toyota’s principal Asian markets are Thailand, India, Indonesia, and Taiwan.
In light of the importance of the Asian market that is further expected to grow in the long term, Toyota aims to build an operational framework that is efficient and self-reliant, as well as a predominant position in the automotive market in Asia. Toyota has responded to increasing competition in Asia by making strategic investments in the market and developing relationships with local suppliers.
In terms of production, Toyota manufactures models, such as the Hilux, Hiace, Corolla, Camry, and Vios through 15 entities. Toyota’s plants in Thailand, not only to meet domestic demand but also to serve as a production base for locations inside and outside of the ASEAN region.
China
Toyota has been conducting operations in China in large part through joint ventures, and its success in producing products that meet local demands and in establishing its sales and service network has significantly contributed to Toyota’s profits. Based on the firm business foundation that it has established, Toyota is conducting its operations with the aim of promoting further growth and increasing profitability through further development of its sales and service network and expansion of its product lineup.
In terms of production, Toyota has been conducting a significant portion of its China business, including in relation to the production and sales of vehicles, through joint ventures. Toyota has two major joint venture partners in China, namely, China FAW Group Corporation and Guangzhou Automobile Group Co., Ltd. The joint venture with China FAW Group manufactures models, such as the Avalon, Corolla, RAV4, and bZ3, and the joint venture with Guangzhou Automobile Group Co., Ltd. manufactures models, such as the Camry, Levin, Highlander, and bZ4X.
Total vehicle unit sales in the Chinese market reached 26.28 million vehicles in 2024. In this market, Toyota’s new vehicle sales were 1.77 million vehicles in 2024. In the domestically produced passenger vehicle market in mainland China (23.30 million vehicles), Toyota had a 7.5% market share. Toyota has been expanding the distribution network for locally produced vehicles in cooperation with China FAW Group and Guangzhou Automobile Group under the names Tianjin FAW Toyota Motor Co., Ltd. and Guanqi Toyota Motor Co., Ltd., respectively, and for imported vehicles, Toyota has also been expanding primarily the Lexus brand sales network. Toyota seeks to increase sales by expanding the number of dealers and its product lineup. In addition, as the market in China develops and becomes more sophisticated, Toyota plans to promote so-called ‘Value Chain’ businesses, such as used car sales, services, financing, and insurance, so as to contribute to the development of a mobility society.
South and Central America, Oceania, Africa, and the Middle East
Toyota’s principal markets in South and Central America, Oceania, Africa, and the Middle East (collectively, the ‘Four Regions’) are Brazil and Argentina in South and Central America, Australia in Oceania, South Africa in Africa, and Saudi Arabia in the Middle East. The core models in the Four Regions are global models, such as the Corolla, IMV (the Hilux), and Camry.
Toyota has seven production bases in the Four Regions. In these regions, which are expected to become increasingly important to Toyota’s business strategy, Toyota aims to continue developing new products that meet the specific demands of each region, increasing production and promoting sales.
Production
As of March 31, 2025, Toyota and its affiliated companies produced automobiles and related components through more than 50 overseas manufacturing organizations in 27 countries and regions aside from Japan. Facilities are located principally in Japan, the United States, Canada, the United Kingdom, France, Turkey, Czech Republic, Poland, Thailand, China, Taiwan, India, Indonesia, South Africa, Argentina, and Brazil.
In promoting a sustainable growth strategy, establishing a system capable of providing optimal supply of products in the global market is integral to Toyota’s strategy.
In line with its basic policy of manufacturing in countries or regions where there is demand and where Toyota is truly competitive, Toyota will make efficient use of and maximize capacity utilization at its existing plants to respond to the expanding market and will continue to focus on making efficient capital investments as necessary.
Toyota closely monitors its actual units of sale, market share, and units of production data and uses this information to allocate resources to existing manufacturing facilities and to plan for future expansions.
Distribution
Toyota’s automotive sales distribution network is the largest in Japan. As of March 31, 2025, this network consisted of 231 dealers employing approximately 100 thousand personnel and operating approximately 4.3 thousand sales and service outlets. TOYOTA Mobility Tokyo Inc. is the only dealer owned by Toyota, and the rest are independent.
Sales of Toyota vehicles in Japan had been conducted through four sales channels until April 2020, but from May 2020 shifted to a framework where all of its Japanese-market vehicle models are made available through all sales outlets in Japan. In addition, Toyota introduced the Lexus brand to the Japanese market in August 2005, and distributes the Lexus brand vehicles through a network of 190 new-vehicle sales outlets dedicated to the Lexus brand in order to enhance its competitiveness in the domestic luxury automotive market.
Multi-pathway Strategy
Providing the company’s customers around the world with options for mobility under its multi-pathway strategy while also promoting the decarbonization of its monozukuri (manufacturing) and supply chains serves as the core of its activities.
The strategy’s basic premise is that the company needs to move away from fossil fuels from the perspective of the global environment and sustainability. Furthermore, over the medium- to long-term, renewable energy sources will continue to proliferate, with electricity and hydrogen emerging as the primary energy sources sustaining society. In the short term, however, it is critical to acknowledge global realities and implement changes in practical ways that maintain energy security.
BEV Strategies
At the New Management Policy & Direction Announcement held on April 7, 2023, Toyota announced that it will expand its current BEV lineup, aim to introduce ten new BEV models by 2026, and set a pace for annual sales of 1.5 million Toyota and Lexus brand BEV units by 2026. In addition, Toyota has plans to release next-generation BEVs in 2026 that will double the driving range compared to that of the current bZ4X by using batteries with greater efficiency.
In May 2023, the company launched the BEV Factory, a business unit dedicated to BEVs. The BEV Factory was reorganized in April 2025 and continues its role as the ‘BR BEV’ under the direct control of the entire company.
The performance version next-generation battery is being developed with Prime Planet Energy & Solutions Corporation, while the popularization and high-performance versions of the next-generation battery, high-performance versions of the bipolar lithium-ion battery, and all-solid-state battery for BEVs are being developed with Toyota Industries, combining the knowledge of the Toyota Group.
In May 2023, Toyota announced that it intends to invest roughly 5 trillion yen investment in BEV production, additional battery plants, and research and development expenses through 2030.
The company’s strategies are liquid lithium-ion battery development, such as next-generation batteries: performance version, next-generation batteries: popularization version, and bipolar lithium-ion battery: high-performance version; and development of all-solid-state batteries.
Hydrogen Business
The company is promoting external sales of fuel cells using the Mirai’s hydrogen units and has received offers from third parties to purchase 100,000 units of fuel cells annually by 2030. Most of them are for commercial vehicles.
To respond to the rapid changes in the market, the company established in July 2023 a new business unit called Hydrogen Factory, which is able to make rapid decisions under one leader, from sales to development and production, all at once. The Hydrogen Factory promotes business on three axes. The first is localizing R&D and production in countries within the major markets. The company is working to accelerate its efforts by establishing local bases, mainly in Europe and China. The second is strengthening alliances with leading partners. In September 2024, Toyota announced the strengthening of its collaboration with the BMW Group in the hydrogen sector, and are working together on the development of fuel cells systems and the improvement of infrastructure. Toyota has already built relationships with OEMs that, when combined, hold a significantly large market share in according to its estimate, and by consolidating sufficient quantities through these alliances, the company is working to deliver affordable fuel cells to its customers. The third is competitiveness and technology. The company is working on ‘innovative evolution of competitive next-generation fuel cell technologies,’ such as next-generation cell technologies and fuel cell systems.
To accelerate the expansion of hydrogen demand, the company is taking on the standardization of tanks for large commercial vehicles, which are expected to consume hydrogen on a large scale.
By applying the fuel cell stack and cell technologies developed for the Mirai, the company has developed a new electrolyzer that produces hydrogen by electrolyzing water. Trials of this electrolyzer began in March 2023 at the DENSO Fukushima plant. Furthermore, the company has started an initiative to produce hydrogen from biogas derived from local chicken manure and food waste in Thailand in collaboration with Mitsubishi Kakoki Kaisha, Ltd., and Toyota Tsusho Corporation.
Software and Connected Initiatives
Toyota is committed to providing new value based on software for the realization of a mobility society. By seamlessly connecting daily lives and cars, as well as proposing and delivering experiences and services that are one step ahead of their expectations, the company will alter lifestyles, transform mobility into excitement, and enrich its customers’ lives. Connecting people and cars, and social systems and cars, will create an ecosystem that becomes part of the social system, leading to the realization of well-being.
Arene is a software platform that accelerates such intelligence, providing applications that bring a comfortable riding experience through advanced safety technologies and infotainment in the in-car experience. This will be updated to reflect the changing times.
Commercial Sector Initiatives
In April 2021, Isuzu Motors Limited (‘Isuzu’), Hino, and Toyota established Commercial Japan Partnership Technologies (CJPT), a new company, with the aim to accelerate the implementation and spread of CASE in society to help address various difficulties facing the transportation industry, as well as help achieve a carbon-neutral society. Suzuki Motor Corporation (‘Suzuki’) and Daihatsu joined the partnership in July 2021 (In October 2023, CJPT reinstated Hino as a partner.).
Distribution by truck accounts for the majority of overland logistics in Japan, and the transportation sector (including buses and taxis) involves a number of people. Commercial vehicles account for a significant proportion of the total distance traveled by automobiles and about half of all CO2 emissions from automobiles in Japan. Furthermore, numerous logistics companies operating in Japan currently face numerous management issues, such as high-frequency distribution, harsh work environments, labor shortages, and rising operating costs.
The company is working with shippers and logistics companies in Fukushima Prefecture and Tokyo on the large-scale social implementation of electric vehicles. A total of 580 vehicles will be used, including heavy and light-duty fuel cell electric trucks, and light-duty BEV trucks and mini-commercial vans, to comprehensively cover transportation from trunk lines to the last mile. As of the end of October 2024, 220 electrified vehicles have hit the roads. In addition to promoting implementation in cities with populations of around 300,000, which are common in Japan, the company will work to develop standards for these vehicles and develop an energy management system that is integrated with operation management to lessen the social burden associated with the introduction and use of electric vehicles and address transportation-related issues. Furthermore, in a public-private initiative aimed at carbon neutrality, the company has begun sharing data with national bodies promoting digital transformation for commercial vehicles. This includes data about electrified vehicles on the road, such as that on driving, batteries, charging, and refueling with hydrogen.
The city of Fukuoka, Fukuoka Prefecture, has begun implementing FCEVs as garbage compactor trucks, ambulances, food delivery trucks, BRT buses, and other vehicles that support daily living, utilizing hydrogen stations operated by the city and other entities. Tokyo has launched a staged support project for introducing these vehicles that aims to put fuel cell garbage compactor trucks into action and is working with local governments to bring hydrogen-powered vehicles into key areas of the Tokyo metropolitan area to encourage familiarity among residents and facilitate widespread use across multiple municipalities.
In April 2021, CJPT began collaboration with AEON GLOBAL SCM Co., Ltd. to improve logistics at the Minami-Osaka distribution center for AEON GLOBAL SCM Co., Ltd. AEON GLOBAL SCM Co., Ltd. has combined its retail logistics know-how with the TPS philosophy to better visualize and streamline the flow of goods, resulting in increased loading efficiency thanks to improved operations at the distribution center, as well as optimized delivery using real-time data. These improvements have manifested as a 10% increase in efficiency of total truck travel distances and a 10% drop in CO2 emissions for AEON GLOBAL SCM Co., Ltd. as a result of their collaboration with CJPT. From September 2022, the scope of these activities was extended to wholesalers and suppliers, and through cross-industry efforts, the company has helped streamline transportation and delivery from upstream to downstream.
CJPT’s domestic initiatives have expanded their reach into Thailand, and it has signed a memorandum of understanding with Charoen Pokphand Group (‘CP’) and Siam Cement Group (‘SCG’) in October 2023 for collaboration in three areas: data solutions, mobility solutions, and energy solutions, aiming toward happiness for all in the country. With the various companies involved in this project working together across industries, CJPT-Asia was established in Thailand to better promote activities. In terms of data solutions, CJPT-Asia analyzed on-site issues at CP and SCG logistics warehouses and took steps to improve efficiency, utilizing real-time data for parcels and other items to improve the efficiency of deliveries. The company has since confirmed that on-site improvements made at SCG’s distribution centers have improved container loading rates, while driving distances for CP Group’s online deliveries have been reduced and transportation routes have been optimized. As for mobility solutions, CJPT-Asia has introduced light and heavy fuel cell trucks, the Hilux Revo e, the JPN Taxi LPG-HEV, and commercial vans. The company is currently conducting demonstration testing using carbon-neutrality-oriented vehicles suited to Thailand’s economic environment, energy situation, and usage patterns, which differ from those of Japan. For energy solutions, CP is investigating the possibility of utilizing energy sources well-suited to Thailand’s environment, such as biogas derived from manure collected from CP’s large-scale poultry farms to produce hydrogen in a hydrogen production facility, which can be used by the fuel cell trucks introduced in the aforementioned mobility solutions demonstration testing.
Woven City
Toyota Woven City, a Test Course for Mobility: Producing Well-being for All
Toyota aspires to transform into a mobility company. On the company’s road toward accomplishing this goal, Toyota Woven City will function as a venue for creating new value. Toyota and its group company Woven by Toyota Inc. are advancing the Woven City project.
Woven City is a test course for mobility in the shape of a city, based on the concepts of A Living Laboratory, Human-Centered, and Ever Evolving City. The people involved in the Woven City project are referred to as ‘Inventors’ and ‘Weavers.’ The Inventors are Toyota Group companies, as well as like-minded outside companies, research institutions, start-ups, and other organizations who have joined this quest for expanding mobility.
Financial Services
Toyota’s financial services include loan programs and leasing programs for customers and dealers. In July 2000, Toyota established a wholly-owned subsidiary, Toyota Financial Services Corporation, to oversee the management of Toyota’s finance companies worldwide, through which Toyota aims to strengthen the overall competitiveness of its financial business, improve risk management, and streamline decision-making processes. Toyota has expanded its network of financial services in accordance with its strategy of developing auto-related financing businesses in significant markets. Accordingly, Toyota currently operates financial services companies in 42 countries and regions, which support its automotive operations globally.
In fiscal 2025, Toyota’s business saw solid growth mainly due to an accumulated balance of earning assets resulting from new car sales support for Toyota and Lexus vehicles. Under such circumstances, as a result of Toyota’s continued collaboration with dealers in various countries and regions and efforts to expand products and services that meet customer needs, Toyota’s share of financing provided for new car sales of Toyota and Lexus vehicles in regions where Toyota Financial Services Corporation operates remained at a high level of approximately 35%, and the balance of earning assets continued to steadily increase. In addition, Toyota is making efforts to provide both its customers and dealers with stable financial services by diversifying its funding methods through direct financing from the market, such as ABCP (Asset Backed Commercial Paper) and ABS (Asset Backed Securities), in addition to using already existing means, such as commercial paper, corporate bonds, and bank borrowings. Furthermore, Toyota continued to perform detailed credit appraisals and serve customers by monitoring bad debt and loan payment extensions, but the percentage of credit losses rose to 0.46% in fiscal 2025, due to financial pressure on households caused by inflation. Toyota continues to work towards improving its risk management measures in connection with credit and residual value risks.
Toyota Motor Credit Corporation is Toyota’s principal financial services subsidiary in the United States. Toyota also provides financial services in 42 other countries and regions through various financial services subsidiaries, including: Toyota Finance Corporation in Japan; Toyota Credit Canada Inc. in Canada; Toyota Finance Australia Ltd. in Australia; Toyota Kreditbank GmbH in Germany; Toyota Financial Services (UK) PLC in the United Kingdom; Toyota Leasing (Thailand) Co., Ltd. in Thailand; and Toyota Motor Finance (China) Co., Ltd. in China.
Toyota Motor Credit Corporation provides a wide range of financial services, including retail financing, retail leasing, wholesale financing, and insurance. Toyota Finance Corporation also provides a range of financial services, including retail financing, retail leasing, and credit cards. Toyota’s other finance subsidiaries provide services including retail financing, retail leasing, and wholesale financing.
KINTO, which started in Japan in 2019 in response to the shift from ‘owning’ cars to ‘using’ cars, has been steadily enhancing its service lineup and gaining brand awareness. In Europe, this service is being made available in wider areas. Furthermore, Toyota developed and provides customers with the payment application ‘TOYOTA Wallet’ as a platform that contributes to improving the convenience of customers’ daily payments and creating a foundation for a mobility society.
Approximately 40% of Toyota’s unit sales in the United States during fiscal 2025 included a finance or lease arrangement with Toyota. Because the majority of Toyota’s financial services operations are related to the sale of Toyota vehicles, a decrease in vehicle unit sales may lead to a contraction of Toyota’s financial services operations.
Retail Financing
Toyota’s finance subsidiaries acquire new and used vehicle installment contracts primarily from Toyota dealers. Installment contracts acquired must first meet specified credit standards. Thereafter, the finance company retains responsibility for installment payment collections and administration. Toyota’s finance subsidiaries acquire security interests in the vehicles financed and can generally repossess vehicles if customers fail to meet their contractual obligations. Almost all retail financings are non-recourse, which relieves the dealers from financial responsibility in the event of repossession. In most cases, Toyota’s finance subsidiaries require their retail financing customers to carry automobile insurance on financed vehicles covering the interests of both the finance company and the customer.
Toyota has historically sponsored, and continues to sponsor, special lease and retail programs by subsidizing below-market lease and retail contract rates.
Retail Leasing
In the area of retail leasing, Toyota’s finance subsidiaries acquire new vehicle lease contracts originated primarily through Toyota dealers. Lease contracts acquired must first meet specified credit standards, after which the finance company assumes ownership of the leased vehicle. The finance company is generally permitted to take possession of the vehicle upon a default by the lessee. Toyota’s finance subsidiaries are responsible for contract collection and administration during the lease period. The residual value is normally estimated at the time the vehicle is first leased. Vehicles returned to the finance subsidiaries at the end of their leases are sold by auction. For example, in the United States, vehicles are sold through a network of auction sites, as well as through the Internet. In most cases, Toyota’s finance subsidiaries require lessees to carry automobile insurance on leased vehicles covering the interests of both the finance company and the lessee.
Wholesale Financing
Toyota’s finance subsidiaries also provide wholesale financing primarily to qualified Toyota dealers to finance inventories of new Toyota vehicles and used vehicles of Toyota and others. The finance companies acquire security interests in vehicles financed at wholesale. In cases where additional security interests would be required, the finance companies take dealership assets or personal assets, or both, as additional security.
Toyota’s finance subsidiaries also make term loans to dealers for facilities refurbishment, real estate purchases, and working capital requirements. These loans are typically secured with liens on real estate, other dealership assets, and/or personal assets of the dealers.
Insurance
Toyota provides insurance services in the United States through Toyota Motor Credit Corporation’s wholly owned subsidiary, Toyota Motor Insurance Services, Inc. (‘TMIS’), and its wholly owned insurance company subsidiaries. Their principal activities include marketing, underwriting, and claims administration. TMIS also provides coverage related to vehicle service agreements through Toyota dealers to customers. In addition, TMIS also provides coverage and related administrative services to affiliated companies of Toyota Motor Credit Corporation. Toyota dealers in Japan and in other countries and regions also engage in vehicle insurance sales.
Other Financial Services
Toyota Finance Corporation launched its credit card business in April 2001 and began issuing Lexus credit cards in 2005 when the Lexus brand was introduced in Japan. As of March 31, 2025, Toyota Finance Corporation had 16.0 million cardholders (including Lexus credit card holders).
All Other Operations
In addition to its automotive operations and financial services operations, Toyota is involved in a number of other non-automotive business activities.
Governmental Regulation, Environmental and Safety Standards
Automotive operations in Japan are subject to substantial environmental regulation under laws, such as the Air Pollution Control Act, the Water Pollution Prevention Act, the Noise Regulation Act, and the Vibration Control Act. Under these laws, if a business entity establishes or alters any facility that is regulated by these laws, the business entity is required to give prior notice to regulators, and if a business entity discharges, uses, or stores substances that are environmental burdens or causes noise or vibration from such facility, the business entity is also required to comply with the applicable standards. Toyota is subject to local regulations, which in some cases impose more stringent obligations than the Japanese central government requirements. Under the Waste Management and Public Cleansing Act, producers of industrial waste must dispose of industrial waste in the manner prescribed in the same act.
Intellectual Property
In 2023, Toyota filed approximately 15,000 patent applications domestically and internationally. In Japan, based on the ranking published by IP Force, Toyota was ranked 3rd among companies and 1st among automobile manufacturers that year in terms of the number of patent registrations as of December 31, 2023. In the United States, based on the ranking published by IFI CLAIMS, Toyota was ranked 12th among companies and 1st among automobile manufacturers that year in terms of the number of patent registrations as of December 31, 2023.
Research and Development
Toyota’s research and development expenditures were approximately ¥1,326.4 billion in fiscal 2025.
History
Toyota Motor Corporation was founded in 1933. The company was incorporated in 1937.
