Despite the COVID-19 pandemic, Toyota’s global vehicle sales totalled 7,646,000 units, a decrease of 1,309,000 units compared to the previous fiscal year. On a consolidated basis, net revenues for the period totalled 27,214.5 billion yen, a decrease of 2,651.9 billion yen. Operating income decreased from 2,399.2 billion yen to 2,197.7 billion yen, while income before income taxes was 2,932.3 billion yen. Net income increased from 2,036.1 billion yen 2,245.2 billion yen.

Commenting on the results, Kenta Kon, Chief Financial Officer of TMC said

Accelerating To Carbon Neutrality Whilst Ensuring No Customers Are Left Behind

James Kuffner, Chief Digital Officer of TMC explained Toyota’s strategy for Carbon Neutrality

Toyota is committed to carbon neutrality; for everybody - not only for selected groups or regions.

For the automotive industry, carbon neutrality means achieving zero CO2 emissions in all processes throughout the lifecycle of manufacturing, transporting, operating, fuelling or charging, and recycling or disposing of vehicles.

Some people believe that concentrating resources, only one solution will achieve the goal of carbon neutrality faster. However, Toyota believes that investing carefully in multiple technologies will be a quicker and more inclusive way to achieve carbon neutrality around the world.

Ongoing Investment In Low Carbon Products And Technologies

Creating low emissions electrified solutions for the masses is part of Toyota’s DNA. As of today, Toyota has sold over 17m electrified vehicles worldwide - including, in 2020, nearly 2m vehicles.

Toyota now has 55 practical, reliable and affordable electrified vehicles in its portfolio, which allows it to meet the needs of its customers worldwide whilst striving to deliver the optimal technology to minimise carbon emissions in each case.

This approach will continue at speed, with Toyota further expanding its global electrified portfolio to 70 products, including 15 battery-electric vehicles, by 2025.

To ensure these products are the most accessible and efficient they can be, Toyota will continue to make significant investments in new battery technologies, such as solid state, and ever more efficient electric motors and improved power electronics.

Further Leveraging Hydrogen Fuel Cell Technology Towards Wider Carbon Neutrality

At the same time, Toyota will continue to invest strongly in its world-leading fuel cell technology.

Toyota believes fuel cell technology can help to clean up a large percentage of the world’s entire transportation ecosystem. For instance, it can help to achieve carbon neutrality in trucks and heavy transport, trains, buses, taxis, aviation, shipping and industrial processes.

There is growing awareness of the significant environmental potential of hydrogen and Toyota is seeing increased interest in its fuel cell technology from a wide group of industries and markets.

Achieving Carbon Neutrality With Internal Combustion Engines

It is estimated that there are more than 1.4 billion vehicles in the world today, and most of them have internal combustion engines. As part of its strategy to achieve carbon neutrality faster, Toyota is exploring and testing possible ways to further minimise their carbon emissions.

Hydrogen fuel, as well as other new renewable e-fuel alternatives made from hydrogen and biofuel, could help minimise the carbon emissions of the world’s existing fleet of vehicles.

And, if that is realised, not only could the existing infrastructure be usable, but all vehicles including those already sold and in use may be able to significantly reduce their overall carbon emissions.

Commitment to Achieving Carbon Neutrality With No Customer Left Behind

Toyota is committed to achieving carbon neutrality by 2050 and firmly believes that multiple technology solutions are necessary to get there faster. Thus, Toyota believes it is better to maintain an open regulatory framework towards carbon-neutrality and not limit possible technology solutions too early.

This will allow companies and societies to work together with all available technologies to achieve the best and fastest results towards carbon neutrality – using whichever solutions and infrastructures suit their local needs best.

No single company or country can accomplish the goal of carbon neutrality alone. All industries must work together to develop new technology and infrastructure in co-operation with scientists and academia, as well as local and national governments.

Toyota would like to maintain its position as a trusted partner to build products & solutions suitable for each country’s citizens to help societies around the world achieve carbon neutrality faster, whilst ensuring that no customer gets left behind.

Toyota Motor Europe raises sales forecast and plans 90% electrification mix for 2025

Toyota Motor Europe achieved vehicle sales of 1.009m units for the fiscal year ended March 31, 2021. Matt Harrison, President & CEO of Toyota Motor Europe, said

No Customer Left Behind On The Journey To Carbon Neutrality In Europe

Toyota believes it has a responsibility to ensure that each & every customer has the opportunity to choose the lowest-possible CO2 product on the journey to carbon neutrality - irrespective of market, segment and budget.

Industry forecasts predict that in the next 10 years over 200 million new cars will be sold in Europe.

Within the 200 million, it is anticipated that around 45 million will be zero-emissions products.

Consequently, whilst Toyota is working hard on democratising zero-emissions vehicles to give the best chances to increase the ZEV volume beyond the forecasted 45 million units, it is also actively working on minimising CO2 emissions for the other 155 million vehicles expected to be sold.

Increased Growth Projected For Toyota’s Business In Europe

This multi-dimension approach to electrification and CO2 reduction in Europe is having positive effects. Toyota is leading the industry in terms of overall CO2 reduction and, at the same time, it is growing its presence in the European market.

Today, in Europe, more customers than ever are choosing Toyota for their low emission solutions. Toyota is seeing increased conquest with its electrified products in core segments; and it is attracting more customers in segments and markets where other brands have withdrawn their products.

Toyota expects this positive trend to continue in Europe as it increases its portfolio of electrified products to meet the lower-emissions needs of all customers - with nobody left behind.

By 2025 Toyota will offer more than 55 electrified products in Europe, including at least 10 zero-emission vehicles. As a result, Toyota is today announcing an increase to its 2025 sales and share ambition in Europe – rising to 1.5m units, which represents more than 7% of the market.

By then, at least 150,000 (10%) will be zero-emissions vehicles – both battery electric and fuel-cell electric. And at least another 1.2m (80%) will be hybrid or plug-in hybrid, leading to an overall minimum 90% electrified mix in 2025.

Seeing these societal trends led London-based Faxi to pioneer a concept, called ‘incentivised carpooling’. The start-up developed a unique app and software platform to tackle commuting related concerns for the benefit of companies, employees and cities. Through the app, users can find and connect with colleagues who share the same route to work and commute at similar times. It allows companies to verify employee carpooling in real time and to offer incentives and rewards, such as priority parking, to car poolers.

These remuneration policies have proven to be successful: one UK based customer increased co-worker carpooling from under 10 to over 200 passengers and drivers per month in just six months.

Growing ambitions for partnership

In 2018, driven by a customer-focused approach, Toyota Financial Services (TFS) decided to start working with Faxi for the development of a Toyota branded carpooling platform to offer incentivised carpooling in Europe. Toyota currently runs several projects across 6 cities in Europe and 3 around the globe.

Seeing similar needs across cities in Europe, TFS has now decided to invest in Faxi, becoming the majority shareholder. Aioi Nissay Dowa Europe / Toyota Insurance Management also invested, joining existing shareholder the Indigo group. The ambition is to scale the Faxi platform across Europe and beyond, expanding the current number of cities and projects.

With the patent pending, the Faxi technology brings people safely together to share common journeys. It helps communities of people to share the costs of their carpool simply and fairly, by reimbursing the driver for fuel and wear and tear. By using smart phone telemetry to measure the proximity of the driver and passengers, it can prove whether or not journeys have in fact been shared. This not only allows organisations to offer specific incentives, such as prioritised parking or other financial benefits. It also provides valuable data to local and central governments on the congestion and environmental savings that are being generated by carpooling.

Additional quotes:

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TME’s sales in the EU+EFTA region grew by 6.8% year-on-year. Sales in the rest of TME’s Europe region (including Russia, Kazakhstan, Ukraine, Caucasus, Turkey and Israel) were stable at -0.8% versus a market down by 10%. This resulted in an increase in share of 0.8 percentage point at 8.41% in the area.

The sales growth in Europe was driven by another significant increase in Toyota and Lexus hybrid vehicle sales, up 38% from Q1 2015 at 71,749. Hybrid sales represented 30% of all sales of TME for the quarter, compared to 24% for the full calendar year 2015. TME plans to sell more than 270,000 hybrids in CY2016 and has a mid-term plan to sell achieve 50% hybrid sales by 2020.

The second contributor to the strong quarter were sales of Lexus premium vehicles. Lexus recorded its best-ever quarter in Europe, up 16% year-on-year, with 18,058 sales.

What they said:

Karl Schlicht, Executive Vice President, Toyota Motor Europe

“Since years, we have put the emphasis on two major strategic directions: hybrid, and the Lexus premium brand. We continue to beat records in hybrid sales, and premium customers are responding to Lexus’ new design and powertrains. We are also extremely pleased with our sales in Eastern Europe where our network is performing heroics in a difficult market, and gaining share.”

Matt Harrison, Vice President, Sales, Toyota 

“The new RAV4 hybrid is off to a fantastic start, demand for Auris and Yaris hybrids is showing no signs of slowing down, and the new Prius has just gone on sale in Europe, so we’re on track to achieve our ambitious hybrid targets. With the new PROACE van range and the new Hilux pickup coming soon, the year is looking bright in Toyota showrooms.”

Alain Uyttenhoven, Vice President, Lexus 

“The second half of 2015 was marked by an intensive string of new model introductions, including RX, GS F and RC in all European markets as well as LX in the Eastern markets, and we are delighted to see such positive customer response. We are committed to further increase the strength of the Lexus brand in Europe and we look forward to a very successful 2016.”

Toyota highlights this quarter:

• Top 3 sellers: Yaris (56,398); RAV4 (28,246), Auris (41,136)
• Top 3 gainers: Avensis (+45%); RAV4 (+15%); Auris (+15%)
• Top 3 hybrids: Auris Hybrid (24,021); Yaris Hybrid (21,320); RAV4 (8,117)
• Top 3 hybrid gainers: Prius (+66%); Auris Hybrid (+33%); Yaris Hybrid (+14%)
• Total hybrid sales: 59,608 (+43% year-on-year)
• Hybrid mix: 27%

Lexus highlights this quarter:

• Top 3 sellers: NX (6,315); RX (4,024); CT200h (2,445)
• Top 3 gainers: LX (+165%); RX (+155%); RX Hybrid (+92%)
• Top 3 hybrids: NX Hybrid (4,672); RX Hybrid (2,362); CT200h (2,445)
• Top 3 hybrid gainers: RC Hybrid (new); RX Hybrid (+92%); GS Hybrid (+20%);
• Total hybrid sales: 12,141 (+15% year-on-year)
• Hybrid mix: 67%

Table 1 – TME ⁽¹⁾ Q1 sales in 2016

^{(1) Toyota Motor Europe is responsible for all Western, Central and Eastern European countries including Turkey and Russia as well as Israel and a number of Central Asian markets (Armenia, Azerbaijan, Georgia, and Kazakhstan).}

^{Models listed in italics are produced locally at Toyota’s European manufacturing facilities.}

“Our excellent hybrid sales performance demonstrates that European consumers look beyond gas price fluctuations and are attracted by the benefits of driving a hybrid, and not just that they save on fuel and emissions,” said Johan van Zyl, President and CEO of TME.“Those include very low cost of ownership, the pleasure of quiet driving and the benefit of an electric drivetrain with no range anxiety,” said van Zyl.

Within those hybrid sales, the Yaris hybrid recorded sales of 72,000 in 2015, up 23% versus last year, proving that hybrid technology is accessible even on a B-segment vehicle. More than one in three Yaris sold in Europe is a hybrid. 

The new Auris hybrid also did extremely well with an increase of 12% year-on-year at 78,500 sales. More than half of all Auris sold by Toyota are hybrid.

For the Lexus premium brand, hybrid sales increased by 24% to reach 41,000 units. Lexus Hybrid Drive vehicles make up 64% of total Lexus sales across the continent, and reach 96% of sales in Western Europe alone.

“With sales of both the new generation Prius and the new RAV4 hybrid about to start, the irreversible drive towards ever more hybrid sales in Europe will continue in 2016,” said van Zyl. “We aim to reach more than 400,000 sales by 2020,” he added.

2015 overall sales results

Overall sales of Toyota and Lexus vehicles reached 874,000 units in 2015 (-1.5%)TME’s sales results reflect two trends last year: 

• sustained growth in Western Europe (+7%) and Central Europe (+18%).
• a decline in sales in Eastern Europe (Russia, Kazakhstan, Ukraine and the Caucasus region) in line with the very strong market decline (-36%)

The group’s overall market share stood at 4.6%.

“Our overall sales results in 2015 were in line with our expectations,” said van Zyl. “We knew from the start that with the Ruble depreciation, 2015 would not be an easy year, but we were able to maintain our share in Eastern Europe whilst increasing our sales in the rest of Europe by 9.5%. We are particularly proud of the extremely strong performance of our hybrid models and the all-time record for our premium brand Lexus in Europe.”

Strong performance of Toyota European produced models

Sales of European produced Toyota vehicles increased by 27,000 units (+5%) and now represent 71% of the total sales (+6% points versus last year).

The new AYGO reached 89,000 sales, a 26% increase year-on-year, continuing to perform strongly in its second year post launch. The newly redesigned Yaris increased sales by 11% to 201,000 units. The new Auris and Avensis, both updated in 2015, have been well received, with 142,000 sales for Auris (stable in a declining segment) and 35,000 sales for Avensis (+17%), with both models’ new interior and exterior designs, and powertrain enhancements earning high praise. 

2016 will see the arrival on the market of new or redesigned models: the new Prius; the RAV4 hybrid; the new Hilux, and the new PROACE.

Lexus has best year on record in Europe

Lexus has achieved its best-ever sales in Europe in 2015. Sales increased by 20% year-on-year to reach nearly 64,000 units. 

“Sales grew strongly in Western Europe and increased even in Eastern Europe despite the market decline,” said van Zyl. “We expect the strong performance achieved in 2015 to continue through 2016 towards another sales record and on track towards our 2020 target of 100,000 sales,” he added.

Lexus sales increased in Western Europe by 31%, in Central Europe by 50% and by 1% in Eastern Europe, despite the challenging environment. The market share in those respective regions increased to 1.2% (+0.2% points increase) in Western Europe, 3.6% (+0.8% points) in Central Europe and a record 12.2% (+3% points increase) in Eastern Europe versus last year.

In a line-up now comprising 9 different models covering the main premium segments, the NX became Lexus’ best seller with 28,000 sales, 61% of which were hybrid. The new RX, launching now, will bring a significant increase in sales in 2016.

“However good they are, sales figures are just sales figures,” said van Zyl. “What’s most important to us in Europe is to grow our brands and our business in a solid and sustainable way, with profit. And we’re doing exactly that by providing ever better Toyota and Lexus cars with ever better service to our customers.”