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1、As filed with the U.S.Securities and Exchange Commission on June 25,2024UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington,D.C.20549FORM 20-F(Mark One)REGISTRATION STATEMENT PURSUANT TO SECTION 12(b)OR(g)OF THE SECURITIES EXCHANGE ACT OF 1934ORANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)OF T

2、HE SECURITIES EXCHANGE ACT OF 1934For the fiscal year ended:March 31,2024ORTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934ORSHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934Commission file number:001-14948TOYOTA JIDOSHA

3、 KABUSHIKI KAISHA(Exact name of registrant as specified in its charter)TOYOTA MOTOR CORPORATION(Translation of registrants name into English)Japan(Jurisdiction of incorporation or organization)1 Toyota-cho,Toyota CityAichi Prefecture 471-8571Japan+81 565 28-2121(Address of principal executive office

4、s)Yoshihide MoriyamaTelephone number:+81 565 28-2121Facsimile number:+81 565 23-5800Address:1 Toyota-cho,Toyota City,Aichi Prefecture 471-8571,Japan(Name,telephone,e-mail and/or facsimile number and address of registrants contact person)Securities registered or to be registered pursuant to Section 1

5、2(b)of the Act:Title of each classTrading Symbol(s)Name of each exchange on which registeredAmerican Depositary Shares*Common Stock*TMThe New York Stock Exchange*Each American Depositary Share representing ten shares of the registrants Common Stock.*No par value.Not for trading,but only in connectio

6、n with the registration of American Depositary Shares,pursuant to the requirements of the U.S.Securities and ExchangeCommission.Securities registered or to be registered pursuant to Section 12(g)of the Act:NoneSecurities for which there is a reporting obligation pursuant to Section 15(d)of the Act:N

7、oneIndicate the number of outstanding shares of each of the issuers classes of capital or common stock as of the close of the period covered by the annual report:13,474,172,027 shares of common stock(including 321,674,315 shares of common stock in the form of American Depositary Shares)as of March 3

8、1,2024Indicate by check mark if the registrant is a well-known seasoned issuer,as defined in Rule 405 of the Securities Act:Yes No If this report is an annual or transition report,indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d)of the Securitie

9、sExchange Act of 1934:Yes No Indicate by check mark whether the registrant(1)has filed all reports required to be filed by Section 13 or 15(d)of the Securities Exchange Act of 1934 during thepreceding 12 months(or for such shorter period that the registrant was required to file such reports),and(2)h

10、as been subject to such filing requirements for the past 90 days:Yes No Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T(232.405 of this chapter)during the preceding 12 months(or for

11、 such shorter period that the registrant was required to submit such files):Yes No Indicate by check mark whether the registrant is a large accelerated filer,an accelerated filer,a non-accelerated filer,or an emerging growth company.See definition of“large accelerated filer,”“accelerated filer,”and“

12、emerging growth company”in Rule 12b-2 of the Exchange Act.(Check one):Large accelerated filer Accelerated filer Non-accelerated filer Emerging growth company If an emerging growth company that prepares its financial statements in accordance with U.S.GAAP,indicate by check mark if the registrant has

13、elected not to use the extendedtransition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a)of the Exchange Act:The term“new or revised financial accounting standard”refers to any update issued by the Financial Accounting Standards Board to

14、 its Accounting Standards Codificationafter April 5,2012.Indicate by check mark whether the registrant has filed a report on and attestation to its managements assessment of the effectiveness of its internal control over financialreporting under Section 404(b)of the Sarbanes-Oxley Act(15 U.S.C.7262(

15、b)by the registered public accounting firm that prepared or issued its audit report.If securities are registered pursuant to Section 12(b)of the Act,indicate by check mark whether the financial statements of the registrant included in the filing reflect thecorrection of an error to previously issued

16、 financial statements.Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of theregistrants executive officers during the relevant recovery period pursuant to 240.10D-1(b).Indicate by check m

17、ark which basis of accounting the registrant has used to prepare the financial statements included in this filing:U.S.GAAP International Financial Reporting Standards as issued by the International Accounting Standards Board Other If“Other”has been checked in response to the previous question,indica

18、te by check mark which financial statement item the registrant has elected tofollow:Item 17 Item 18 If this is an annual report,indicate by check mark whether the registrant is a shell company(as defined in Rule 12b-2 of the Exchange Act):Yes No TABLE OF CONTENTSPageITEM 1.IDENTITY OF DIRECTORS,SENI

19、OR MANAGEMENT AND ADVISERS.1ITEM 2.OFFER STATISTICS AND EXPECTED TIMETABLE.1ITEM 3.KEY INFORMATION.13.ARESERVED.13.BCAPITALIZATION AND INDEBTEDNESS.13.CREASONS FOR THE OFFER AND USE OF PROCEEDS.13.DRISK FACTORS.1ITEM 4.INFORMATION ON THE COMPANY.74.AHISTORY AND DEVELOPMENT OF THE COMPANY.74.BBUSINES

20、S OVERVIEW.74.CORGANIZATIONAL STRUCTURE.684.DPROPERTY,PLANTS AND EQUIPMENT.69ITEM 4A.UNRESOLVED STAFF COMMENTS.70ITEM 5.OPERATING AND FINANCIAL REVIEW AND PROSPECTS.715.AOPERATING RESULTS.715.BLIQUIDITY AND CAPITAL RESOURCES.945.CRESEARCH AND DEVELOPMENT,PATENTS AND LICENSES.985.DTREND INFORMATION.1

21、005.ECRITICAL ACCOUNTING ESTIMATES.100ITEM 6.DIRECTORS,SENIOR MANAGEMENT AND EMPLOYEES.1006.ADIRECTORS AND SENIOR MANAGEMENT.1006.BCOMPENSATION.1076.CBOARD PRACTICES.1166.DEMPLOYEES.1176.ESHARE OWNERSHIP.1186.FDISCLOSURE OF A REGISTRANTS ACTION TO RECOVER ERRONEOUSLYAWARDED COMPENSATION.119ITEM 7.MA

22、JOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS.1197.AMAJOR SHAREHOLDERS.1197.BRELATED PARTY TRANSACTIONS.1207.CINTERESTS OF EXPERTS AND COUNSEL.121ITEM 8.FINANCIAL INFORMATION.1218.ACONSOLIDATED STATEMENTS AND OTHER FINANCIAL INFORMATION.1218.BSIGNIFICANT CHANGES.123ITEM 9.THE OFFER AND LISTING.123

23、9.ALISTING DETAILS.1239.BPLAN OF DISTRIBUTION.1239.CMARKETS.1239.DSELLING SHAREHOLDERS.1239.EDILUTION.1239.FEXPENSES OF THE ISSUE.123ITEM 10.ADDITIONAL INFORMATION.12310.ASHARE CAPITAL.12310.BMEMORANDUM AND ARTICLES OF ASSOCIATION.12410.CMATERIAL CONTRACTS.130Page10.DEXCHANGE CONTROLS.13010.ETAXATIO

24、N.13510.FDIVIDENDS AND PAYING AGENTS.14110.GSTATEMENT BY EXPERTS.14110.HDOCUMENTS ON DISPLAY.14110.ISUBSIDIARY INFORMATION.14110.JANNUAL REPORT TO SECURITY HOLDERS.141ITEM 11.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.141ITEM 12.DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES.

25、14212.ADEBT SECURITIES.14212.BWARRANTS AND RIGHTS.14212.COTHER SECURITIES.14212.DAMERICAN DEPOSITARY SHARES.142ITEM 13.DEFAULTS,DIVIDEND ARREARAGES AND DELINQUENCIES.144ITEM 14.MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS ANDUSE OF PROCEEDS.144ITEM 15.CONTROLS AND PROCEDURES.144ITEM 16.R

26、ESERVED.145ITEM 16A.AUDIT COMMITTEE FINANCIAL EXPERT.145ITEM 16B.CODE OF ETHICS.145ITEM 16C.PRINCIPAL ACCOUNTANT FEES AND SERVICES.146ITEM 16D.EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES.147ITEM 16E.PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATEDPURCHASERS.147ITEM 16F.CHAN

27、GE IN REGISTRANTS CERTIFYING ACCOUNTANT.148ITEM 16G.CORPORATE GOVERNANCE.148ITEM 16H.MINE SAFETY DISCLOSURE.152ITEM 16I.DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENTINSPECTIONS.152ITEM 16J.INSIDER TRADING POLICIES.153ITEM 16K.CYBERSECURITY.153ITEM 17.FINANCIAL STATEMENTS.156ITEM 18.FINANCI

28、AL STATEMENTS.156ITEM 19.EXHIBITS.157As used in this annual report,the term“fiscal”preceding a year means the twelve-month period endedMarch 31 of the year referred to.All other references to years refer to the applicable calendar year unless thecontext otherwise requires.Unless the context otherwis

29、e requires or as otherwise expressly stated,references inthis prospectus supplement to“TMC”refers to Toyota Motor Corporation,“Toyota,”“we,”“us,”“our”andsimilar terms refer to Toyota Motor Corporation and its consolidated subsidiaries,as a group,and as ofMarch 31,2024,“Toyota Group”refers to Toyota

30、Motor Corporation,Toyota Industries Corporation,Aichi SteelCorporation,JTEKT CORPORATION,Toyota Auto Body Co.,Ltd.,Toyota Tsusho Corporation,AISINCORPORATION,DENSO Corporation,TOYOTA BOSHOKU CORPORATION,TOYOTA FUDOSAN CO.,LTD.,TOYOTA CENTRAL R&D LABS.,INC.,Toyota Motor East Japan,Inc.,Toyoda Gosei C

31、o.,Ltd.,HinoMotors,Ltd.,Daihatsu Motor Co.,Ltd.,Toyota Housing Corporation,Toyota Motor Kyushu,Inc.and Woven byToyota,Inc,collectively.Toyotas consolidated financial statements in this annual report have been prepared in accordance withIFRS Accounting Standards,as issued by the International Account

32、ing Standards Board(“IASB”).IFRSAccounting Standards also includes International Accounting Standards(“IASs”)and the related interpretationsof the interpretations committees(SIC and IFRIC).As such,we make an explicit and unreserved statement ofcompliance with IFRS Accounting Standards with respect t

33、o our consolidated financial statements as of and forthe fiscal years ended March 31,2022,2023 and 2024 included in this annual report.CAUTIONARY STATEMENT WITH RESPECT TO FORWARD-LOOKING STATEMENTSWritten forward-looking statements may appear in documents filed with the SEC,including this annualrep

34、ort,documents incorporated by reference,reports to shareholders and other communications.The U.S.Private Securities Litigation Reform Act of 1995 provides a“safe harbor”for forward-lookinginformation to encourage companies to provide prospective information about themselves without fear oflitigation

35、 so long as the information is identified as forward-looking and is accompanied by meaningfulcautionary statements identifying important factors that could cause actual results to differ materially from thoseprojected in the information.Toyota relies on this safe harbor in making forward-looking sta

36、tements.Forward-looking statements appear in a number of places in this annual report and include statementsregarding Toyotas current intent,belief,targets or expectations or those of its management.In many,but not allcases,words such as“aim,”“anticipate,”“believe,”“estimate,”“expect,”“hope,”“intend

37、,”“may,”“plan,”“predict,”“probability,”“risk,”“should,”“will,”“would,”and similar expressions,are used as they relate toToyota or its management,to identify forward-looking statements.These statements reflect Toyotas currentviews with respect to future events and are subject to risks,uncertainties a

38、nd assumptions.Should one or more ofthese risks or uncertainties materialize or should underlying assumptions prove incorrect,actual results may varymaterially from those which are anticipated,aimed at,believed,estimated,expected,intended or planned.Forward-looking statements are not guarantees of f

39、uture performance and involve risks and uncertainties.Actual results may differ from those in forward-looking statements as a result of various factors.Importantfactors that could cause actual results to differ materially from estimates or forecasts contained in the forward-looking statements are id

40、entified in“Risk Factors”and elsewhere in this annual report,and include,amongothers:(i)changes in economic conditions,market demand,and the competitive environment affecting theautomotive markets in Japan,North America,Europe,Asia and other markets in which Toyota operates;(ii)fluctuations in curre

41、ncy exchange rates(particularly with respect to the value of the Japanese yen,the U.S.dollar,the euro,the Australian dollar,the Canadian dollar and the British pound),stock prices andinterest rates;(iii)changes in funding environment in financial markets and increased competition in the financialser

42、vices industry;(iv)Toyotas ability to market and distribute effectively;(v)Toyotas ability to realize production efficiencies and to implement capital expenditures at thelevels and times planned by management;(vi)changes in the laws,regulations and government policies in the markets in which Toyota

43、operatesthat affect Toyotas automotive operations,particularly laws,regulations and government policies relatingto vehicle safety including remedial measures such as recalls,trade,environmental protection,vehicleemissions and vehicle fuel economy,as well as changes in laws,regulations and government

44、 policies thataffect Toyotas other operations,including the outcome of current and future litigation and other legalproceedings,government proceedings and investigations;(vii)political and economic instability in the markets in which Toyota operates;(viii)Toyotas ability to timely develop and achiev

45、e market acceptance of new products that meetcustomer demand;(ix)any damage to Toyotas brand image;(x)Toyotas reliance on various suppliers for the provision of supplies;(xi)increases in prices of raw materials;(xii)Toyotas reliance on various digital and information technologies,as well as informat

46、ion security;(xiii)fuel shortages or interruptions in electricity,transportation systems,labor strikes,work stoppagesor other interruptions to,or difficulties in,the employment of labor in the major markets where Toyotapurchases materials,components and supplies for the production of its products or

47、 where its products areproduced,distributed or sold;(xiv)the impact of natural calamities,epidemics,political and economic instability,fuel shortages orinterruptions in social infrastructure,wars,terrorism and labor strikes,including their negative effect onToyotas vehicle production and sales;(xv)t

48、he impact of climate change and the transition towards a low-carbon economy;and(xvi)the ability of Toyota to hire or retain sufficient human resources.PART IITEM 1.IDENTITY OF DIRECTORS,SENIOR MANAGEMENT AND ADVISERSNot applicable.ITEM 2.OFFER STATISTICS AND EXPECTED TIMETABLENot applicable.ITEM 3.K

49、EY INFORMATION3.A RESERVED3.B CAPITALIZATION AND INDEBTEDNESSNot applicable.3.C REASONS FOR THE OFFER AND USE OF PROCEEDSNot applicable.3.D RISK FACTORSIndustry and Business RisksThe worldwide automotive market is highly competitive.The worldwide automotive market is highly competitive.Toyota faces

50、intense competition from automotivemanufacturers in the markets in which it operates.In recent years,competition in the automotive industry hasfurther intensified amidst difficult overall market conditions.In addition,competition is likely to further intensifyas technological advances in areas such

51、as Connected,Autonomous/Automated,Shared,and Electric(“CASE”)technologies progress in the worldwide automotive industry,possibly resulting in industry reorganizations.Factors affecting competition include product quality and features,safety,reliability,fuel economy,the amountof time required for inn

52、ovation and development,pricing,customer service,financing terms and tax credits orother government policies in various countries.Increased competition may lead to lower vehicle unit sales,whichmay result in a further downward price pressure and adversely affect Toyotas financial condition and resul

53、ts ofoperations.Toyotas ability to adequately respond to the recent rapid changes in the automotive market,particularly shifts in consumer preferences to electrified vehicles,and to maintain its competitiveness will befundamental to its future success in existing and new markets and to maintain its

54、market share.There can be noassurances that Toyota will be able to compete successfully in the future.The worldwide automotive industry is highly volatile.Each of the markets in which Toyota competes has been subject to considerable volatility in demand.Demand for vehicles depends to a large extent

55、on economic,social and political conditions in a given market andthe introduction of new vehicles and technologies.As Toyotas revenues are derived from sales in marketsworldwide,economic conditions in such markets are particularly important to Toyota.Reviewing the world economy for fiscal 2024,it re

56、mained steady mainly in the U.S.,where employmentstayed strong,despite the effects of high inflation and interest rates and a stagnant real estate market in China.The automotive market grew significantly from the previous year,thanks to a surge of pent-up demand assemiconductor supply constraints ea

57、sed.Changes in demand for automobiles are continuing,and it is unclear1how this situation will transition in the future.Toyotas financial condition and results of operations may beadversely affected if the changes in demand for automobiles continues or progresses further beyond Toyotasexpectations.D

58、emand may also be affected by factors directly impacting vehicle price or the cost of purchasingand operating vehicles such as sales and financing incentives,prices of raw materials and parts and components,cost of fuel and governmental regulations(including tariffs,import regulation and other taxes

59、).Volatility indemand may lead to lower vehicle unit sales,which may result in downward price pressure and adversely affectToyotas financial condition and results of operations.Toyotas future success depends on its ability to offer new,innovative and competitively priced products thatmeet customer d

60、emand on a timely basis.Meeting customer demand by introducing attractive new vehicles and reducing the amount of time requiredfor product development are critical to automotive manufacturers.In particular,it is critical to meet customerdemand with respect to quality,safety,reliability and sustainab

61、ility.The timely introduction of new vehiclemodels and vehicle features,at competitive prices,meeting rapidly changing customer preferences and demand ismore fundamental to Toyotas success than ever,as the automotive market is rapidly transforming in light of thechanging global economy and technolog

62、ical advances.There is no assurance,however,that Toyota willadequately and appropriately respond to changing customer preferences and demand with respect to quality,safety,reliability,styling,sustainability and other features in a timely manner.Even if Toyota succeeds inperceiving customer preferenc

63、es and demand,there is no assurance that Toyota will be capable of developing andmanufacturing new,price competitive products in a timely manner with its available technology,intellectualproperty,sources of raw materials and parts and components,and production capacity,including cost reductioncapaci

64、ty.Further,there is no assurance that Toyota will be able to offer new products or implement capitalexpenditures at the level and times planned by management,including as described in targets or goals that wehave disclosed publicly.Toyotas inability to develop and offer products that meet customersp

65、references anddemand with respect to quality,safety,reliability,styling,sustainability and other features in a timely mannercould result in a lower market share and reduced sales volumes and margins,and may adversely affect Toyotasfinancial condition and results of operations.Toyotas ability to mark

66、et and distribute effectively is an integral part of Toyotas successful sales.Toyotas success in the sale of vehicles depends on its ability to market and distribute effectively based ondistribution networks and sales techniques tailored to the needs of its customers.There is no assurance thatToyota

67、 will be able to develop sales techniques and distribution networks that effectively adapt to changingcustomer preferences or changes in the geopolitical and regulatory environment in the major markets in which itoperates.Toyotas inability to maintain well-developed sales techniques and distribution

68、 networks may result indecreased sales and market share and may adversely affect its financial condition and results of operations.Toyotas success is significantly impacted by its ability to maintain and develop its brand image andreputation.In the highly competitive automotive industry,it is critic

69、al to maintain and develop a brand image andreputation.In order to do so,it is necessary to further increase stakeholdersconfidence by ensuring that Toyota,the Toyota Group and its suppliers thoroughly comply with laws and regulations,provide safe,high-qualityproducts that meet customer preferences

70、and demand,as well as timely and appropriately disseminateinformation to stakeholders.It is also becoming increasingly important for companies to contribute tosustainability.However,the Toyota Group may not be able to ensure that it or its suppliers do so in all cases.For instance,at the consolidate

71、d subsidiary level,Hino Motors,Ltd.(“Hino”)and Daihatsu Motor Co.,Ltd.(“Daihatsu”)announced vehicle model certification issues in March 2022 and in April 2023,respectively.In addition,ToyotaMotor Corporation investigated certain of its model certification applications as per instructions from the2Mi

72、nistry of Land,Infrastructure,Transport and Tourism of Japan(“MLIT”)on January 26,2024.Toyota MotorCorporation has confirmed that since 2014 seven models,including some that have already been discontinued,were tested as part of such applications using methods that differed from government standards,

73、and it reportedthis to MLIT on May 31,2024.See“Item 4.Information on the Company 4.B Business Overview SelectedInitiatives”for further discussion of these and related matters.In addition,actual or perceived failures on the part of Toyota or its suppliers to contribute to sustainabilityor to meet cer

74、tain sustainability-related goals or objectives,including those relating to climate change or theprotection of human rights in Toyotas supply chain,may also harm Toyotas reputation.Any insufficientmeasures taken by Toyota,the Toyota Group or their suppliers to maintain and develop Toyotas brand imag

75、eand reputation may have an adverse effect on Toyotas financial condition and results of operations.Toyota relies on suppliers for the provision of certain supplies including parts,components and raw materials.Toyota purchases supplies including parts,components and raw materials from a number of ex

76、ternalsuppliers located around the world.For some supplies,Toyota relies on a single supplier or a limited number ofsuppliers,whose replacement with another supplier may be difficult.Inability to obtain supplies from a single orlimited source supplier may result in difficulty obtaining supplies and

77、may restrict Toyotas ability to producevehicles.Furthermore,even if Toyota were to rely on a large number of suppliers,first-tier suppliers with whomToyota directly transacts may in turn rely on a single second-tier supplier or limited second-tier suppliers.Irrespective of the number of suppliers,To

78、yotas ability to continue to obtain supplies from its suppliers in atimely and cost-effective manner is subject to a number of factors,some of which are not within Toyotascontrol.These factors include the ability of Toyotas suppliers to provide a continued source of supply,andToyotas ability to effe

79、ctively compete and obtain competitive prices from suppliers.Circumstances that mayadversely affect such abilities include geopolitical tensions as well as related governmental actions such aseconomic sanctions.A loss of any single or limited source supplier,or inability to obtain supplies from supp

80、liers in a timely andcost-effective manner,could lead to increased costs or delays or suspensions in Toyotas production anddeliveries,which could have an adverse effect on Toyotas financial condition and results of operations.The worldwide financial services industry is highly competitive.The worldw

81、ide financial services industry is highly competitive.Increased competition in automobilefinancing may lead to decreased margins.A decline in Toyotas vehicle unit sales,an increase in residual valuerisk due to lower used vehicle prices,an increase in the ratio of credit losses and increased funding

82、costs areadditional factors which may impact Toyotas financial services operations.If Toyota is unable to adequatelyrespond to the changes and competition in automobile financing,Toyotas financial services operations mayadversely affect its financial condition and results of operations.Toyotas opera

83、tions and vehicles rely on various digital and information technologies,as well as informationsecurity,which are subject to frequent attack.Toyota depends on various information technology networks and systems,some of which are managed bythird parties,to process,transmit and store electronic informa

84、tion,including sensitive data,and to manage orsupport a variety of business processes and activities,including manufacturing,research and development,supply chain management,sales and accounting.In addition,Toyota vehicles may rely on various digital andinformation technologies,including information

85、 service and driving assistance functions.Despite security measures,Toyotas digital and information technology networks and systems may bevulnerable to damage,disruptions,shutdowns due to unauthorized access or attacks by hackers,computer3viruses,breaches due to unauthorized use,errors or malfeasanc

86、e by employees and others who have or gainaccess to the networks and systems Toyota depends on or otherwise uses,service failures or bankruptcy of thirdparties such as software development or cloud computing vendors,power shortages and outages,and utilityfailures or other catastrophic events like na

87、tural disasters.In particular,cyberattacks or other intentionalmalfeasance are increasing in terms of intensity,sophistication and frequency,and Toyota has been and expectsto continue to be the subject of such attacks.Such attacks have,in some cases,and could again disrupt criticaloperations,disclos

88、e sensitive data,interfere with information services and driving assistance functions inToyotas vehicles,and/or give rise to legal claims or proceedings,liability or regulatory penalties underapplicable laws,which could have an adverse effect on Toyotas brand image and its financial condition andres

89、ults of operations.Moreover,similar attacks on Toyotas suppliers and business partners have had,and may inthe future have,a similar negative impact on Toyota.Toyota is exposed to risks associated with climate change,including the physical risks of climate change andrisks from the transition to a low

90、er-carbon economy.Risks associated with climate change are subject to increasing societal,regulatory and political focus inJapan and globally.These risks include the physical risks of climate change and risks from the transition to alower-carbon economy.The physical risks of climate change include b

91、oth acute,event-driven risks such as those relating tohurricanes,floods and tornadoes,as well as longer-term weather patterns and related effects,such as sustainedhigher temperatures,sea level rise,drought and increased wildfires.Despite Toyotas contingency planning,inaddition to large-scale disaste

92、rs due to extreme weather conditions.the increase and intensification of severeweather events such as heat waves is expected to increase the risk of heat stroke and water shortages due todrought.Such severe weather events and other natural conditions have in the past harmed,and may in the futureagai

93、n harm,Toyotas employees or its facilities and other assets,as well as those of Toyotas suppliers and otherbusiness partners,thereby adversely affecting Toyotas production,sales or other operational capacities.Large-scale disasters and other events may also adversely affect the financial condition o

94、f Toyotas customers,andthereby demand for its products and services.Transition risks are those attributable to regulatory,technological and market changes to address themitigation of,or adaptation to,climate-related risks.For example,Toyota is subject to the risk of changes incustomer demand for veh

95、icles due to such factors as changes in laws,regulations and government policiesrelating to climate change,technological innovation to address climate change,and new entrants into theautomobile industry that seek to capitalize on changing market dynamics.Changes in customer demand maypose ancillary

96、risks and challenges,such as Toyotas having to establish new,or enhance existing,supplynetworks in order to source the raw materials,parts and components necessary for it to manufacture the productsthen in demand at desired volumes and at competitive costs.Toyota may incur significant costs and expe

97、nses as aresult of the materialization of such risks,or in its efforts to mitigate or adapt to such risks.Toyotas inability todevelop and offer products that meet customers preferences and demand in a timely manner could result in alower market share and reduced sales revenues and margins,and may ad

98、versely affect Toyotas financialcondition and results of operations.For a further discussion of risks associated with climate change,see“Item 4.Information on the Company 4B.Business Overview Climate Change-related Disclosures.”Furthermore,Toyota has published disclosures on climate-change related m

99、atters relating to its business andits partners.Such disclosures include forward-looking statements based on Toyotas expectations andassumptions,involving substantial discretion and forecasts about costs and future circumstances,which mayprove to be incorrect.In addition,Toyotas initiatives relating

100、 to climate change may not have the intendedresults,and estimates concerning the timing and cost of implementing,and ability to meet,stated goals aresubject to risks and uncertainties.As a result,Toyota may not be able to meet its goals,including those set forthin this annual report,on expected timi

101、ng or within expected costs.4In particular,progress toward achieving Toyotas climate-related targets requires significant investment ofresources and management time,as well as further improvement of compliance and risk management systems,internal controls and other internal procedures.Toyotas abilit

102、y to achieve its climate-related goals,which are tobe pursued over the long-term and are inherently aspirational,is subject to numerous risks and uncertainties,many of which are outside of Toyotas control,such as changes in environmental and energy regulation andpolicy,the pace of technological chan

103、ge and innovation,and the actions of Toyotas customers and competitors.Any failure,or perceived failure,by Toyota to achieve its climate-change related goals,including those set forthin this annual report,could adversely impact its reputation,financial condition and results of operations.Toyotas ope

104、rations are dependent on securing,retaining and developing talented,diverse employees.Given in particular the rapid changes in its business environment and its efforts to transform into a mobilitycompany,Toyotas success depends on its ability to continue to recruit,retain and develop talented and di

105、verseemployees.However,competition for such employees is intense and if Toyota cannot recruit and retain diverseemployees with a high level of expertise and extensive experience as planned,or it is unable to provide itsemployees with the opportunities,training and resources they need to develop them

106、selves further,it may reduceToyotas competitiveness,and its financial condition,results of operations and cashflow could be adverselyaffected.Financial Market and Economic RisksToyotas operations are subject to currency and interest rate fluctuations.Toyota is sensitive to fluctuations in foreign cu

107、rrency exchange rates and is principally exposed tofluctuations in the value of the Japanese yen,the U.S.dollar and the euro and,to a lesser extent,the Australiandollar,the Canadian dollar and the British pound.Toyotas consolidated financial statements,which arepresented in Japanese yen,are affected

108、 by foreign currency exchange fluctuations through translation risk,andchanges in foreign currency exchange rates may also affect the price of products sold and materials purchased byToyota in foreign currencies through transaction risk.In particular,strengthening of the Japanese yen against theU.S.

109、dollar can have an adverse effect on Toyotas operating results.Toyota believes that its use of certain derivative financial instruments including foreign exchange forwardcontracts and interest rate swaps and increased localized production of its products have reduced,but noteliminated,the effects of

110、 interest rate and foreign currency exchange rate fluctuations.Nonetheless,a negativeimpact resulting from fluctuations in foreign currency exchange rates and changes in interest rates may adverselyaffect Toyotas financial condition and results of operations.For a further discussion of currency and

111、interest ratefluctuations and the use of derivative financial instruments,see“Item 5.Operating and Financial Review andProspects Operating Results 5.A Operating Results Overview Currency Fluctuations,”“Item 11.Quantitative and Qualitative Disclosures About Market Risk,”and notes 19 and 20 to Toyotas

112、 consolidatedfinancial statements.High prices of raw materials and strong pressure on Toyotas suppliers has and could continue to negativelyimpact Toyotas profitability.Increases in raw materials prices that Toyota and Toyotas suppliers use in manufacturing their products orparts and components such

113、 as steel,precious metals,non-ferrous alloys including aluminum,and plastic parts,may lead to higher production costs for parts and components.This could,in turn,negatively impact Toyotasprofitability if Toyota is not able to pass all those costs on to its customers.A downturn in the financial marke

114、ts could adversely affect Toyotas ability to raise capital.Should the world economy suddenly deteriorate,a number of financial institutions and investors will facedifficulties in providing capital to the financial markets at levels corresponding to their own financial capacity,5and,as a result,there

115、 is a risk that companies may not be able to raise capital under terms that they would expectto receive with their creditworthiness.If Toyota is unable to raise the necessary capital under appropriateconditions on a timely basis,Toyotas financial condition and results of operations may be adversely

116、affected.Regulatory,Legal,Political and Other RisksThe automotive industry is subject to various governmental regulations and actions.The worldwide automotive industry is subject to various laws and governmental regulations including thoserelated to vehicle safety and environmental matters such as e

117、mission levels,fuel economy,noise and pollution.Inparticular,automotive manufacturers such as Toyota are required to implement safety measures such as recallsfor vehicles that do not or may not comply with the safety standards of laws and governmental regulations.Inaddition,Toyota may,in order to re

118、assure its customers of the safety of Toyotas vehicles,decide to voluntarilyimplement sales suspensions,recalls or other safety measures even if the vehicle complies with the safetystandards of relevant laws and governmental regulations.If Toyota launches products that result in safetymeasures such

119、as recalls(including where parts related to recalls or other measures were procured by Toyotafrom a third party),Toyota may incur various costs including significant costs for free repairs.Similarly,manygovernments also impose tariffs and other trade barriers,taxes and levies,or enact price or excha

120、nge controls.Furthermore,the failure to comply with such regulations could result in legal proceedings,recalls,negotiatedremedial actions,fines,corrective orders,revocations of government approvals and the imposition of othergovernment sanctions,restricted product offerings,compensatory payments or

121、adverse consequences.Toyota hasincurred significant costs in response to governmental regulations and actions,including costs relating to changesin global trade dynamics and policies,and expects to incur such costs in the future.Furthermore,new legislationor regulations or changes in existing legisl

122、ation or regulations may also subject Toyota to additional costs in thefuture.If Toyota incurs significant costs related to implementing safety measures or responding to laws,regulations and governmental actions,Toyotas financial condition and results of operations may be adverselyaffected.Toyota ma

123、y become subject to various legal proceedings.Toyota may become subject to legal proceedings in respect of various issues,including issues relating to thetopics discussed in“The automotive industry is subject to various governmental regulations and actions,”aswell as product liability and infringeme

124、nt of intellectual property.Toyota may also be subject to legalproceedings brought by its shareholders and governmental proceedings and investigations.Toyota is in factcurrently subject to a number of pending legal proceedings and government investigations.A negative outcomein one or more of these p

125、ending legal proceedings could adversely affect Toyotas reputation,brand image,financial condition and results of operations.For a further discussion of governmental regulations,see“Item 4.Information on the Company 4B.Business Overview Governmental Regulation,Environmental and SafetyStandards”and f

126、or legal proceedings,please see“Item 4.Information on the Company 4B.BusinessOverview Legal Proceedings.”Toyota may be adversely affected by natural calamities,epidemics,political and economic instability,fuelshortages or interruptions in social infrastructure,wars,terrorism and labor strikes.Toyota

127、 is subject to various risks associated with conducting business worldwide.These risks includenatural calamities;epidemics;political and economic instability;fuel shortages;interruption in socialinfrastructure including energy supply,transportation systems,gas,water,or communication systems resultin

128、gfrom natural hazards or technological hazards;wars;terrorism;labor strikes and work stoppages.Disruptions,delays and other adverse changes in the operations of Toyotas business have ensued from such risksmaterializing in the past.Should the major markets in which Toyota purchases materials,parts an

129、d componentsand supplies for the manufacture of Toyota products or in which Toyotas products are produced,distributed orsold be affected by any of these events,it may result in future disruptions,delays and other adverse changes inthe operations of Toyotas business.6ITEM 4.INFORMATION ON THE COMPANY

130、4.A HISTORY AND DEVELOPMENT OF THE COMPANYToyota Motor Corporation is a limited liability,joint-stock company incorporated under the CommercialCode of Japan and continues to exist under the Companies Act of Japan(the“Companies Act”).Toyotacommenced operations in 1933 as the automobile division of To

131、yota Industries Corporation(formerly ToyodaAutomatic Loom Works,Ltd.).Toyota became a separate company in August 1937.In 1982,the Toyota MotorCompany and Toyota Motor Sales merged into one company,the Toyota Motor Corporation of today.As ofMarch 31,2024,Toyota operated through 577 consolidated subsi

132、diaries(including structured entities)and 165associates and joint ventures accounted for by the equity method.See“Item 4.Information on the Company 4.B Business Overview Capital Expenditures andDivestitures”for a description of Toyotas principal capital expenditures and divestitures between April 1,

133、2021and March 31,2024 and information concerning Toyotas principal capital expenditures and divestiturescurrently in progress.Toyotas principal executive offices are located at 1 Toyota-cho,Toyota City,Aichi Prefecture 471-8571,Japan.Toyotas telephone number in Japan is+81-565-28-2121.The SEC mainta

134、ins a website(https:/www.sec.gov/)that contains reports,proxy and informationstatements,and other information regarding issuers that file electronically with the SEC.Toyota also maintains awebsite(https:/global.toyota/en/)through which its annual reports on Form 20-F and certain of its other SECfili

135、ngs may be accessed.Information contained on or accessible through Toyotas website is not part of thisannual report on Form 20-F.4.B BUSINESS OVERVIEWToyota primarily conducts business in the automotive industry.Toyota also conducts business in financeand other industries.Toyota sold 9,443 thousand

136、vehicles in fiscal 2024 on a consolidated basis.Toyota had salesrevenues of 45,095.3 billion and net income attributable to Toyota Motor Corporation of 5,071.4 billion infiscal 2024.Toyotas business segments are automotive operations,financial services operations and all otheroperations.The followin

137、g table sets forth Toyotas sales to external customers in each of its business segmentsfor each of the past three fiscal years.Yen in millionsYear Ended March 31,202220232024Automotive.28,531,99333,776,87041,080,731Financial Services.2,306,0792,786,6793,447,195All Other.541,436590,749567,399Toyotas

138、automotive operations include the design,manufacture,assembly and sale of passenger vehicles,minivans and commercial vehicles such as trucks and related parts and accessories.Toyotas financial servicesbusiness consists primarily of providing financing to dealers and their customers for the purchase

139、or lease ofToyota vehicles.Toyotas financial services business also provides mainly retail installment credit and leasingthrough the purchase of installment and lease contracts originated by Toyota dealers.Related to Toyotasautomotive operations,Toyota is working towards having all of its vehicles b

140、ecome connected vehicles,creatingnew value and reforming businesses by utilizing big data obtained from those connected vehicles,andestablishing new mobility services.Toyotas all other operations business segment includes the informationtechnology related businesses including a web portal for automo

141、bile information called GAZOO.com.7Toyota sells its vehicles in approximately 200 countries and regions.Toyotas primary markets for itsautomobiles are Japan,North America,Europe and Asia.The following table sets forth Toyotas sales to externalcustomers in each of its geographical markets for each of

142、 the past three fiscal years.Yen in millionsYear Ended March 31,202220232024Japan.8,214,7409,122,28210,193,556North America.10,897,94613,509,02717,624,268Europe.3,692,2144,097,5375,503,738Asia.5,778,1157,076,9227,604,269Other*.2,796,4933,348,5304,169,494*“Other”consists of Central and South America,

143、Oceania,Africa and the Middle East.During fiscal 2024,21.1%of Toyotas automobile unit sales on a consolidated basis were in Japan,29.8%were in North America,12.6%were in Europe and 19.1%were in Asia.The remaining 17.3%of consolidatedunit sales were in other markets.The Worldwide Automotive MarketToy

144、ota estimates that annual worldwide vehicle sales totaled approximately 89 million units in 2023.Automobile sales are affected by a number of factors including:social,political and economic conditions;introduction of new vehicles and technologies;vehicle prices,costs incurred by customers to purchas

145、e and operate automobiles;andthe availability of parts and components that Toyota needs to manufacture its products.These factors can cause consumer demand to vary substantially from year to year in different geographicmarkets and in individual categories of automobiles.Looking at the global economy

146、 in fiscal 2024,it remainedsteady mainly in the U.S.,where consumption stayed strong,and in emerging economies,where economy wasrecovering due to the normalization from the economic effects of the COVID-19 pandemic.In contrast,Chinastagnated due to the sluggish real estate market.The automotive mark

147、et expanded significantly from the previous year,thanks to a surge of pent-up demandas semiconductor supply constraints eased.Although the automotive market in some countries experienced adownturn due to slowing real demand and a deteriorating loan environment,the global market expanded by 9%year ov

148、er year.Looking at the economies of major countries,in the United States,domestic demand continued to be firmdue to a favorable employment and income environment.In Europe,inflation and high interest rates continued,and as a consequence,the economy was sluggish.In Japan,consumption stagnated due to

149、the impact of inflation.In China,although the economy recovered from the impact of its zero-coronavirus policy,the economic growthwas slow due to the sluggish real estate market.In emerging countries such as India,the economy grew stronglymainly in terms of domestic demand.Amid this environment,the

150、automotive market expanded significantly by 9%compared to the previous yearin 2023.8In North America,new vehicle sales were approximately 18.70 million units,an increase from the previousyear.In Europe,new vehicle sales also increased from the previous year at approximately 17.40 million units.Sanct

151、ions from Western nations and their withdrawal from Russian-related businesses progressed,causing theRussian market to fall sharply year-on-year.In Asia(including India but excluding Japan and China),newvehicle unit sales slightly decreased from the previous year to approximately 10.70 million units

152、.The share ofeach market across the globe,which Toyota estimates based on the available automobile sales data in eachcountry and region information,was 30%for China,21%for North America(20%excluding Mexico and PuertoRico),20%for Europe and 12%for Asia.In China,new vehicle sales increased from the pr

153、evious year toapproximately 26.00 million units.In the medium-to long-term,Toyota expects the automotive market to continue growing driven principallyby growth in China and other emerging countries.However,global competition is expected to be severe,as thepace of technological advancement and develo

154、pment of new products,particularly related to electrification,quickens further,including in response to a heightened global awareness of the environment with a view tocarbon neutrality and the strengthening of various regulations in line with such awareness.The worldwide automotive industry is affec

155、ted significantly by government regulations aimed at reducingharmful effects on the environment,enhancing vehicle safety and improving fuel economy.These regulationshave added to the cost of manufacturing vehicles.Many governments also mandate local procurement of partsand components and impose tari

156、ffs and other trade barriers,as well as price or exchange controls as a means ofcreating jobs,protecting domestic producers or influencing their balance of payments.Changes in regulatoryrequirements and other government-imposed restrictions can limit or otherwise burden an automakersoperations.Gover

157、nment laws and regulations can also make it difficult to repatriate profits to an automakershome country.The development of the worldwide automotive market includes the continuing globalization of automotiveoperations.Manufacturers seek to achieve globalization by localizing the design and manufactu

158、re of automobilesand their parts and components in the markets in which they are sold.By expanding production capabilitiesbeyond their home markets,automotive manufacturers are able to reduce their exposure to fluctuations in foreignexchange rates,as well as to trade restrictions and tariffs.Over th

159、e years,there have been many global business alliances and investments entered into betweenmanufacturers in the global automotive industry.There are various reasons behind these transactions includingthe need to address excessive global capacity in the production of automobiles,and the need to reduc

160、e costs andimprove efficiency by increasing the number of automobiles produced using common vehicle platforms and bysharing research and development expenses for environmental and other technology,the desire to expand acompanys global presence through increased size;and the desire to expand into par

161、ticular segments orgeographic markets.Toyotabelievesthatitsresearchanddevelopmentinitiatives,particularlythedevelopmentofenvironmentally friendly new vehicle technologies,vehicle safety and information technology,provide it with astrategic advantage.Toyota PhilosophyThe automotive industry is experi

162、encing a once-in-a-century transformation.We are now striving totransform ourselves into a mobility company.In an era which it is hard to predict the future,Toyota has reflectedon the path it has taken thus far and has formulated the“Toyota Philosophy”as a roadmap for the future.9Toyotas mission is“

163、Producing Happiness for All”by expanding the possibilities of people,companies andcommunities through addressing the challenges of mobility as a mobility company.In order to do so,Toyota willcontinue to create new and unique value with various partners by relentlessly committing towards monozukuri(m

164、anufacturing),and by fostering imagination for people and society.MISSIONProducing Happiness for AllUsing our technology,we work towards a future ofconvenience and happiness,available to allVISIONCreating Mobility for AllToyota strives to raise the quality and availability ofmobility so that individ

165、uals,businesses,municipalitiesand communities can do more,while achieving asustainable relationship with our planetVALUEWe unite our three strengths(Software,Hardware andPartnerships)to create new and unique value thatcomes from the Toyota WayToyota Production System(“TPS”)TPS is imbued with the des

166、ire of Sakichi Toyoda,the founder of the Toyota Group,and Kiichiro Toyoda,the founder,“to make someones work easier.”TPS was established based on two concepts:Jidoka,which can be loosely translated as“automation with ahuman touch,”an idea of stopping equipment immediately when a problem occurs,in or

167、der to preventdefective products from being producedand“Just in Time”(“JIT”),a concept based on the idea that“eachprocess produces only what is needed for the next process in a continuous flow.”Based on the basic philosophiesof jidoka and JIT,through TPS,Toyota aims to efficiently and quickly produc

168、e vehicles of sound quality,one ata time,to fully satisfy customer requirements.Toyota believes that improving upon TPS is essential to its future survival.Toyota has introduced TPS intodevelopment departments and administrative departments.Toyota applies TPS to its development departmentsnot only t

169、o shorten development times and reduce costs,but also to develop our human resources,thus leading tothe manufacturing of ever-better cars that customers will love.Selected InitiativesWe made a New Management Policy&Direction Announcement on April 7,2023.Our new managementstructures theme is“inherita

170、nce and evolution.”The most important value we have cultivated is“Lets makeever-better cars!”While talking about cars on the front lines and striving hard to bring smiles to customersfaces,we continue to pursue ever-better cars.Together with the 370,000 employees of Toyota around the world,our suppl

171、iers,and our dealers,we all make cars together.Car-making is a team effort.We will accelerate thetaking on of challenges for the future,with a new management style of“simultaneously and organically workingas a team.”10Aiming for the FutureWe aim to transform into a mobility company.Toyotas mission i

172、s“Producing happiness for all.”For carsto continue being a necessary part of society,we need to change the future of the car.For that,there are twomajor themes,“carbon neutrality”and“expanding the value of mobility.”Carbon NeutralityWe are fully committed to achieving carbon neutrality in 2050 over

173、the entire life cycle of our vehicles.When it comes to car manufacturing,we will continue to pursue a variety of options,based on a multi-pathwayapproach,to stay close to the future of energy and the realities of each region.First,we will thoroughly implement whatever electrification we can do immed

174、iately.We will strengthensales of hybrid electric vehicles(“HEVs”),including in emerging markets,and increase our number of plug-inhybrid electric vehicle options(“PHEVs”).We will expand our lineup of battery electric vehicles(“BEVs”),which represent one important option,over the next several years.

175、We will do our utmost to develop BEVs andcreate new business models.We will also accelerate projects for the realization of the hydrogen society that we believe lies just beyondthe BEV era.With partners across industries and countries,we will advance the expansion of the realm ofhydrogen usage by su

176、ch means as social implementation in Thailand and Fukushima,the mass production ofcommercial fuel cell electric vehicles(“FCEVs”),and the development of hydrogen engine technologies in thearena of motorsports.Furthermore,we will work with the energy industry to develop technologies for carbon-neutra

177、l fuels,including next-generation biofuels and synthetic fuels.We will work to promote electrified vehicles and reduce CO2emissions while leaving no one behind,including in emerging markets.Through this all-direction approach,we aim to reduce average CO2emissions forvehicles we sell worldwide by 33%

178、or greater by 2030 and by 50%or greater by 2035 compared to 2019.Wewill continue to promote decarbonization globally and steadily toward 2050.Expanding the Value of MobilityThe cars of the future will become more connected to society as they become more electrified,intelligent,and diversified.In add

179、ition to moving peoples hearts and emotions and moving people and goods,we will gatherthe movements of energy and information and link them together as one through data.By doing so,we will beable to provide seamless mobility experiences that are connected with other mobilities,as well as provide new

180、value for cars as part of the social infrastructure.Cars connected to society will also be closely connected tovarious services that support peoples daily lives,such as telecommunications and finance,expanding the circleof new value-added services centered on mobility.Toyota Mobility ConceptWe have

181、developed“Toyota Mobility Concept”as our vision of the mobility society that we are aiming for.Evolving the car to be more useful to society based on its essential values that have been cultivated over time,such as safety,security,and being fun to driveto strive toward such a future,we will continue

182、 ourtransformation into a mobility company in following three domains.The first is“Mobility 1.0.”What we aim for in this is to expand the value of the car by connecting varioustypes of movement.For example,BEVs offer new mobility possibilities for the transport of electricity.Collectively serving as

183、 an energy grid,BEVs can enhance the energy security of society.That is the kind of rolethat BEVs can also fulfill.Also,intelligence can evolve cars even further by utilizing information gathered fromcars and customers.Our software platform Arene holds the key to this new kind of car-making.Connecti

184、ng the11latest hardware and software will enable cars and various software applications to freely connect.Arene willfulfill an important role as a platform to support this kind of evolution.We will do our utmost to develop a next-generation BEV for 2026 together with Woven by Toyota,Inc.What we aim

185、for in the second domain,“Mobility 2.0,”is to expand mobility into new realms.There aremany people whose mobility we are currently not able to support as we would like,such as the elderly,peopleliving in depopulated areas,and people in emerging markets in which the car market has yet to mature.Newmo

186、bility possibilities,such as mobility in the sky,are also expanding.Toyota,in addition to having a full lineupof vehicles,has new forms of mobility,such as the e-Palette,as well as a network of colleagues across industries,such as those in the Mobility as a Service(“MaaS”)space.Leveraging these stre

187、ngths,we would like to gobeyond our current scope of business to provide greater mobility support to our customers around the world.“Mobility 3.0”is about integration with social systems.We aim to create mobility ecosystems integratedwith cities and society that tie into energy and transportation sy

188、stems,logistics,as well as the way we live,and afuture that realizes well-being.To do this,we will proceed with our demonstration experiments in Woven City.For example,we will advance our development of new logistics systems and the development of city-integratedautonomous mobility,as well as demons

189、trations that start from Woven City of a CO2-free hydrogen supply chainand of expanding the potential of hydrogen use in our daily lives.In addition to these demonstrations to date,which have utilized digital technologies,from 2025 we will accelerate comprehensive demonstrations in realcities,leadin

190、g to social implementation together with our partners.The most important message we want to convey through our mobility concept is that mobility lies beyondthe evolution of the car.Cars lie at the center of our transformation into a mobility company.In order to expandthe possibilities of cars,it is

191、necessary to evolve based on the concepts of“Best-in-Town”and“ever-better cars,”which we have long cultivated.We will change the future of cars based on our products and regions.Product-centered ManagementToyota Mobility Concept is centered on enhancing the value of the car,expanding new mobility an

192、dfreedom of movement,and providing new services and energy solutions as part of social systems.The threeapproaches that hold the key to realizing this vision are electrification,intelligence,and diversification.Electrification will be based on a multi-pathway approach.We will continue to tailor elec

193、trification to theneeds of customers and individual regions by drawing on the strengths and characteristics of each vehicle type.We have plans for 2026 to release next-generation BEVs entirely different from those of today BEVs createdby carmakers.This new generation of BEVs will double driving rang

194、e by compared to that of the current bZ4Xusing batteries with greater efficiency while also offering design and driving performance to set hearts racing.In addition,by drawing on the strengths of TPS,we will change the way we work to reduce the number ofprocesses for the BEV production line by half.

195、This will entail a shift to more efficient lines,includingautonomous inspections and unmanned transport powered by connected technology.We also aim to achievecarbon neutrality at all of our global plants by 2035.Also,we will overhaul existing supply chains by workingwith suppliers to procure superio

196、r quality parts at lower prices.To realize these transformations,we created a new specialized unit in May 2023 to develop BEVs.Workingunder a single leader entrusted with full authority,this all-in-one team will handle every function,fromdevelopment to production and business operation.Supporting th

197、is is our competitiveness in such areas asper-unit development cost and investment in in-house production,both of which have been halved by the ToyotaNew Global Architecture(“TNGA”)as compared to those before the adoption of TNGA.We will provide theteam with comprehensive support through the power o

198、f our 10-million-unit-strong sales and revenue base.For PHEVs,by increasing battery efficiency to extend the EV-mode driving range beyond 200 km,we willreposition PHEVs as“the practical BEV”and will work harder on developing this as another BEV option.12For FCEVs,we will pursue mass production cente

199、red on commercial vehicles.One feature of FCEVs is thatthe energy source,hydrogen,is lightweight,so even when traveling longer distances the vehicle will not be asheavy as a comparable BEV,and less space for storage of the energy source is required.Refueling is also muchquicker.Taking advantage of t

200、hese strengths,we plan to work with business operators to promote FCEVs bystarting with commercial vehicles,such as medium-to heavy-duty trucks.Additionally,in 2022 we started basicresearch on hydrogen engines for heavy-duty commercial vehicles.The second approach is intelligence.Intelligence will e

201、xpand connectivity between cars,services,andsociety.The shift to intelligent cars will involve expanding advanced safety technology,multimedia,and otherconstantly evolving feature updates to all of our vehicles.At the same time,alongside advances in the onboardoperating system,our next-generation BE

202、Vs will enable users to customize“ride feel”according to theirpreferences for how the vehicle runs,turns,and stops.By also honing the vehiclesessential attributes,we willcreate cars that are more fun to drive in terms of both hardware and software.Intelligent services will include new services that

203、connect cars to cities and infrastructure.In 2023,wecommenced social implementation of logistics systems that use real-time traffic information to boost transportefficiency,and systems that provide optimal energy management.Partnering with cities and public facilities,wewill also expand our BEV char

204、ging network,while providing a variety of services that support the energy gridand peoples lives.These efforts are already underway at Lexus.With respect to intelligence in society,we will conduct demonstration experiments regarding various waysof connecting people,cars,and society in Woven City,whi

205、ch we have positioned as our“mobility test course.”We will use Woven City to address issues that come to light through social implementation of connectedlogistics services,before implementing these services in society.By repeating this process,we will accelerate therealization of an intelligent soci

206、ety.Finally,we come to diversification.Our approach to diversification goes beyond cars to mobility itself,andeven the energy sector.The diversification of cars will involve expanding our product lineup,services that utilizeconnected technology,as well as parts and accessories businesses in collabor

207、ation with new partners.With respect to diversification of mobility,we have developed an easy-lock system for securing wheelchairswith a single motion,utilizing the know-how we have accumulated over many years of developing welfarevehicles,and we started installing this system in vehicles in 2023.As

208、 for energy diversification,we have started demonstration experiments using hydrogen made from water,food loss and other waste,as well as carbon-neutral fuels made from biomass and other resources,in Japan andThailand.Our energy use technology will also be strengthened in the field of motorsports wi

209、th an aim topromoting widespread adoption in society.Region-centered ManagementWe have refined the performance and cost of hybrid vehicles with each successive generation.As a result,we have been able to enhance greatly their earning power while investing in the future,growing withstakeholders,and r

210、educing CO2emissions.This is precisely an achievement of our region-centered management,which is based on our efforts to make ever-better cars.We will continue to deepen our region-centeredmanagement and further solidify our business foundation.To do so,the first thing that we must address is how to

211、 achieve carbon neutrality.Carbon knows no borders,and CO2emission is an issue that cannot wait.We need to immediately start with what we can do.Therefore,tospread the use of electrified vehicles as quickly as possible and as much as possible,we need to be very attentiveto the needs of our customers

212、 by taking into account local conditions and the diverse ways of using cars.Thus,along with enhancement of the BEV lineup,we will continue to enhance the attractiveness and competitivenessof all powertrains,including HEVs and PHEVs.13In developed countries,in parallel with the preparation of next ge

213、neration BEVs,we will significantlyexpand our product lineup,focusing on the bZ series with refined performance.In the U.S.,we will start the localproduction of a three-row SUV in 2025 that will be equipped with batteries to be produced in North Carolina,and we seek to increase our battery productio

214、n capacity.In China,we debuted new BEV models,the bZ3C andthe bZ3X,locally developed and fit to the local needs,at the Beijing International Automotive Exhibition inApril 2024,and we plan to launch them in China within a year.We plan to continue to increase the number ofmodels in the following years

215、.In Asia and other emerging markets,we commenced local production of BEVpickup trucks in 2023 and plan to launch a compact BEV model to respond to the growing demand for BEVs.Indeveloped countries,the switch to BEVs is moving forward as the market matures,while in emerging markets,the market is expe

216、cted to expand due to demand for new and additional vehicles.Toyota,with its full lineup and profitable HEVs and PHEVs,along with its diverse options of BEVs that itwill be strengthening,will make sure to meet a wide range of global demand and is committed to further growth.For growth in emerging ma

217、rkets,profitable HEVs will be used as a source of income,and with a value chainsupporting the sale of approximately 10 million units per year,we will also take part in a wide range of businessopportunities.In addition,we will achieve cost reductions and Kaizen(continuous improvement)by leveragingthe

218、 strengths of TPS,and thereby enhance our future investment capacity for the expansion of growth in BEVsand mobility areas,as well as establish a strong business foundation whereby carbon neutrality and growth canboth be achieved.While the technological innovations of electrification,intelligence an

219、d diversification are progressing,wewould like to take on the challenge of contributing to regions in which we operate and to the overall good.Forexample,in the United States,the automotive industry is at a critical juncture,with people moving away frommanufacturing and with structural costs increas

220、ing.By combining worksite-honed craftsman skills withintelligence to propose new ways of manufacturing and new“automation with human intelligence”processes,wewant to do our part in preserving manufacturing in the United States while solving the countrys labor shortageproblem.In Thailand,we started c

221、ollaborations with Charoen Pokphand and the Siam Cement Group.This is thestart of an implementation that uses electrification and connected technologies to connect vehicles,people andinformation,and utilize mobility as part of the social infrastructure.Through these initiatives,we will take on thech

222、allenge of solving regional problems such as serious traffic congestion,air pollution and frequent roadaccidents.Lets Change the Future of Cars!No matter how times change,Toyota is a company that manages by way of its products.And we are acompany that intends to produce happiness for all by respondi

223、ng to the diversification of its customers andsocieties around the world.There is a future mobility society that Toyota in particular can aim for because it hasrefined the strength of its full lineups worldwide.In an uncharted era,we believe that it is action based on strong will and passion that wi

224、ll change the future.Together with our colleagues,we will challenge ourselves to think outside the box.We believe that a future ofmobility,one that is unique to carmakers and to Toyota,lies ahead.Lets change the future of cars!This is ourtheme as we aim to become a mobility company.Based on our unsh

225、akable motives,we will take on challenges with strong will and passion.Implementation of Transformation into a Mobility CompanyToyota is taking on the challenge of transforming into a mobility company with the mission of“producinghappiness for all.”We are now accelerating practical efforts to give c

226、oncrete form to our vision,based on a solidmanagement foundation in products,operations,and finances that have been established over the years.14Through the transformation into a mobility company and continuing to work on the evolution of theautomobile,our goal is to contribute to creating a mobilit

227、y society filled with smiling faces.We would also liketo work together with many like-minded partners to achieve a new industrial structure.We believe that the key tothese aims is to increase the mobility of energy and data,thereby increasing the value of mobility.Looking aheadto a future supported

228、by electricity and hydrogen,we would like to support the creation of a society based onrenewable energy in which cars serve as a medium for transporting energy and also use mobilitys value createdthrough data to further enrich our customerslives.As part of those efforts,in the past year,we have been

229、 working to implement our multi-pathway strategy.We believe that achieving a carbon-neutral society requires a multifaceted approach and practical transition thatconsiders customer expectations,infrastructure development,and other factors.Based on that,we are currently expanding options around the w

230、orld,centering on hybrid vehicles.Further,we have been working hard to materialize BEVs,which were our missing piece,and hydrogen mobility.Regarding BEVs,our venture to create a new car architecture is progressing,including the development ofcompact and lightweight power units.It has also been estab

231、lished that the BEV we are aiming for is not only anelectrified powertrain but also a“software-defined vehicle(“SDVs”)”that is unique to Toyota and realizes avariety of mobility values for customers.In addition,we are also developing internal combustion engines with a view toward their future utiliz

232、ation.In looking at the overall picture of these options,we have positioned this year as“our first truly multi-pathway year”and are steadily moving toward materializing the various paths.Our multi-pathway approach includes building a foundation for SDVs centering on the development of ouron-vehicle

233、operating system,Arene.Going forward,we believe that generative AI will enhance data-createdvalue.We intend to pursue a generative AI-facilitated evolution of mobility,with a focus on automated drivingthat provides safety and security and on SDVs.Furthermore,we believe that creating mobility value t

234、hat isintegrated with social systems based on energy and data requires collaboration with many colleagues,includingin the infrastructure development field.It will also require that applications and services that are close to our daily lives be more integrated withcars,which we aim to accomplish with

235、 Arene as the foundation.Together with like-minded partners,we willcontinue our efforts to materialize the value of mobility.To strengthen the creation of such new value,we willaccelerate our forward shift in research and development and strengthen“planting seeds for the future”from amedium-to long-

236、term perspective.Constructing a“10-year Work Overview”Group Vision and Work FoundationIn January 2024,we announced the direction the Toyota Group should take and a vision to which all ToyotaGroup members can return.“Inventing our path forward,together.”Sakichi Toyoda,the founder of the Toyota Group,

237、invented the Toyoda wooden hand loom with the desireto make life a little easier for his struggling mother.Kiichiro Toyoda invented the domestically producedpassenger car with the idea that the automobile industry must be developed by the knowledge and skills ofJapanese people.Thinking of others,lea

238、rning,honing skills,making things,and bringing smiles to peoplesfacesthat passion and attitude toward invention are truly the starting point of the Toyota Group.15In a time when there is no right answer,we will build a corporate culture in which we can say“thank you”to each other and aim to be a Toy

239、ota Group that is needed in the future,where diverse human resources can playan active role.Recently,the Toyota Group and its subsidiaries,including Hino Motors in March 2022 and Daihatsu Motorin April 2023,have been found to be involved in a series of irregularities.We are also facing various issue

240、scaused by the lack of reserve capacity.Confronting these issues head-on and striving to strengthen our workfoundation is paramount in achieving long-term business stability.To ensure that work is done correctly,we believe thatlike quality control in manufacturingthe twoconcepts of“incidence prevent

241、ion”and“spillover prevention”are important.Incidence prevention is an initiativeto create a corporate culture in which everyone works correctly based on values and rules,with doing it theToyota way serving as our foundation.This is an initiative to change peoples attitudes over time,and we believeit

242、 is important for top management to repeatedly demonstrate the vision and values,and to continuecommunicating them to the genba(frontlines)through their own actions.For spillover prevention,we will review our certification organization to enhance checks and balances onthe development function and cr

243、eate a system and structure,such as TPS self-study activities(that is,activities tovoluntarily learn and practice TPS)of the certification process,to stop action immediately in the event of anyunforeseen events.We will pursue effective governance in the Toyota way through comprehensive measures inte

244、rms of corporate culture,mechanisms,and systems.16Toyotas Governance ApproachSustainabilityProducingHappiness for AllEnhancingcorporate valueCorrect work practicesProtect and affirm what makes us ToyotaSpillover preventionVision-driven managementCorporate culture enabling frontline workersto think a

245、nd act on their own initiative Incidence preventionCultureWhat makes us Toyota“Lets make ever-better cars”Toyota normsStructures/systemsCorrect workPVCtCultureWhat makes us ToyotasystemsToyota normsCorrect work kStructures/systemsOur Awareness of and Involvement in the Certification IrregularitiesAs

246、 we move forward with our efforts,the following actions will be taken in response to the certificationirregularities involving Daihatsu,Hino,and Toyota Industries Corporation(“Toyota Industries”).The root causecommon to the irregularities at these three companies was a disconnect between management

247、and the genba(frontlines).Excessive pressure placed on workplaces led to a lack of leeway and stifled communication,resulting in a weakened awareness of legal compliance and irregularities becoming routine.Management failedto grasp the reality of workplaces and did not change the environments that g

248、ave rise to irregularities.The management teams were responsible for what happened.The management teams at the time at all threecompanies clarified their responsibilities by investigating the irregularities,establishing measures to preventrecurrence,charting the next courses of action,returning bonu

249、ses,and accepting reduced compensation.Underthe new management team,we will support the three companies in thoroughly preventing recurrence andfulfilling their responsibilities for the future.Regarding Daihatsu,more than 50 Toyota members have joined the workplaces concerned,working withthem to revi

250、ew regulations in various countries and technical drawings,as well as to conduct retests.Since theIndependent Third-Party Committees investigation report in December 2023,management members of Daihatsuand Toyota have been meeting almost daily to discuss recurrence-prevention measures and review busi

251、nessschemes.As one action to prevent recurrence,we plan to change the arrangement for compact cars to one ofoutsourcing from Toyota,into a system in which Toyota will be responsible for everything from development tocertification,including resource management.Toyota and Daihatsu will work together t

252、o ensure that correctwork takes root in workplaces,including certification work that is in line with laws and regulations.Regarding Hino,since the irregularities were revealed,we have been discussing issues to prevent recurrenceand rebuild the company,focusing on how business should be conducted.Cur

253、rently,as announced in the basicagreement in May 2023,we are proceeding with the rebuilding through a business integration with MitsubishiFuso Truck and Bus Corporation,in collaboration with Daimler Truck Holding AG.As Hinos parent company,we will continue to provide support.17As for Toyota Industri

254、es,although our capital relationship with it differs from those with our subsidiariesDaihatsu and Hino,as it is a member of the Toyota Group,we will provide it with the necessary support toprevent recurrence.As part of that,we will transfer the development and certification of automobile engines toT

255、oyota.We are also creating an open relationship among top management and increasing the amount of dailycommunication.Corporate Culture,Mechanisms,and SystemsThe governance measures of Toyota and the Toyota Group,with the participation of outside directors andAudit&Supervisory Board Members,are summa

256、rized below.Build extra capacityHR development/trainingInternal control policies&practicesEnhance Speak Up systemEnhance auditingBoard of DirectorsRisk management structureStrengthen inter-organizationalchecks and balancesStrengthen systems related tolegal certificationRevise investment policies&cro

257、ss-shareholdingsCoordinate Speak UpShare wrongdoing informationGovernance/compliance surveysAppoint subsidiary executivesSubsidiary executive trainingStrengthen internal controls,risk managementSlim down executive teamSpeak Up at each companyGroup VisionCultureStructureSystemsAkio JukuGenba authorit

258、yOpen workplacesToyota PhilosophyToyotaMotorToyotaGroupCode of ConductDialogue with Toyota Group&subsidiary leadersGenba authoritySubsidiariesSubsidiarymanagement(Corporate culture:Group vision)The foundation for creating a corporate culture is the Toyota Groups vision and attitudes.Through suchplat

259、forms as the Akio Toyodas Juku(roundtable with employees),we engage in numerous dialogues with ourgenba(frontlines)members to ensure that our vision and values are instilled in them.Recently,ChairmanToyoda attended a gathering of Daihatsu dealership representatives and spoke about the values to upho

260、ld and histhoughts on Daihatsus revitalization.To change the corporate culture,top management plan to repeatedly engage in such dialogue.As part of our efforts to build appropriate corporate cultures,we are also increasing the amount ofcommunication among management members through occasions such as

261、 president meetings and executive vicepresident meetings of members of Toyota and the Toyota Group.It is believed that the foundation of groupgovernance is to build relationships in which members of top management can communicate openly with eachother daily.18 Guiding our transformation into a mobil

262、ity company Toyotas mission:Producing Happiness for All Continually reinforced through employee handbooks&integrated reports Guidelines for putting the Toyota Philosophy into practice Includes Chairman&Presidents messages on commitment to compliance Translated into 13 languages and distributed to al

263、l subsidiaries(FY2023:presidents met 3 times,vice presidents 14)Working to improve understanding of workplace conditions across all roles Becoming more open,ensuring/maintaining mental healthToyotaMotorSubsidiariesSubsidiarymanagementCultureToyotaGroupVision&attitudes to ensure the Toyota Group is n

264、eeded in the futureToyota Group vision:Inventing Our Path Forward,TogetherChairman Toyoda engages in direct dialogue with frontline members,helping spread the companys vision and valuesGenba authorityOpen workplacesCommunication between management,including Group company president/vice president mee

265、tingsand subsidiary/affiliated company leaders(10 times)Establishes regular,open dialogue between company leadersAkio JukuToyota PhilosophyCode of ConductGenba authorityDialogue with Toyota Group&subsidiary leadersGroup Vision(Mechanism:Reserve capacity)Toyota is currently prioritizing the creation

266、of“reserve capacity”.For example,in production,we loweredthe maximum daily production volume from the originally planned 14,500 units to 14,000 units.In development,we optimized the number of projects by reviewing priorities and creating more capacity onsite.This will allow us to devote much time to

267、 improving workplace communication,ensuring safety and qualityin our work,improving individual skills based on job descriptions,developing a skilled workforce,andimplementing other enhancements.We are promoting these initiatives company-wide with the idea of establishing today how we will work in10

268、years.(Mechanism/System:Strengthening internal control and risk management of subsidiaries)Also,by encouraging the top management of each company,we are strengthening our subsidiariesinternalcontrol systems.For example,Daihatsus new Governance,Risk and Compliance Management Division and GRC*Committe

269、e were established as Daihatsu and Toyota jointly considered measures to prevent recurrence,and wewill work together with them to ensure effective operations.Additionally,to expand the legal certificationsystem,which was a particular issue this time,workplace members of Daihatsu,Hino,and Toyota Indu

270、stries aregathering through TPS self-study activities to clarify their business processes.*Governance Risk Management and Compliance.19Re-examine how we work now,establish how we will work in 10 years Revise max.domestic daily production from 14,500 vehicles to 14,000 Communication with outside dire

271、ctors to boost board effectivenessFY2023:-16 board meetings,60 preliminary briefings-13 executive personnel planning committee meetings.-3 roundtable discussions,27 information sharing meetings-102 information sharing messages(chat)Set up special unit,identified key business risks,began subsidiary t

272、raining Strengthened resource management for project execution departments Reviewed certification body to increase checks and balances ondevelopment,launched TPS study group on certification practices Began project to develop legal expertise at 8 Group companies.Learning safety/environmental regulat

273、ions Shifted cross-shareholdings to growth areas to promote“active assets”Toyotas executive planning committee involved in subsidiary appointments Training on legal handbooks,misconduct cases(3 session,150+attendees)Expanded subsidiary internal controls,incl.sharing Toyotasinformation/expertise and

274、launching special units through top discussions To resolve the management-genba disconnect at Daihatsu,eliminated senior general manager&deputy roles,moving from 5 to 3-level system10 compensation planning committee meetings(incl.preliminary)-4 sustainability meetings.3 sustainability subcommittee s

275、essions-5 governance risk subcommittee sessions,2 intensive governance debatesToyotaMotorBuild extra capacityBoard of DirectorsSubsidiariesRisk management structureSubsidiarymanagementSlim down executive teamStrengthen systems related tolegal certificationStrengthen internal controlsRisk managementR

276、evise investment policies&cross-shareholdingsAppoint subsidiary executivesSubsidiary executive trainingStrengthen inter-organizationalchecks and balancesStructure(System:Speak Up)When it comes to internal reporting,we have unified the operation of our Speak Up system for raising thealarm for Toyota(

277、internal)and externally(subsidiaries,Toyota Group,etc.),so that we will be able to respond tothem more promptly than ever.(System:Auditing expansion)Toyota will also expand its auditing of subsidiaries.Based on risk assessments,we plan to expand the number of subject companies and conduct audits fro

278、mmultiple perspectives,including corporate culture,workplace environment,and legal compliance.In addition to audits,we have rolled out such tools as governance inspection check sheets and compliancesurveys to all subsidiaries to encourage self-inspection with the involvement of top management.Throug

279、h these comprehensive measures,we will strive to improve consolidated governance.As we keep the Toyota way as our foundation,we want to tenaciously strivebased on a desire to link ouractions today to our competitiveness 10 years from nowto create environments that ensure that all employeesdo correct

280、 work.20ToyotaMotorSubsidiarymanagementSubsidiariesEnsure rules are clearly stated andunderstoodEnhance Speak Up systemEnhance auditingCoordinate Speak UpShare wrongdoing informationGovernance/compliance surveysStrengthen internal controlsRisk managementSpeak Up at each company Updated officer legal

281、 handbook:explains director roles/responsibilities&key laws Internal control e-learning:taken by all employees to gain fundamental knowledge Governance checks:all subsidiaries conduct self-checks,expanded to include Compliance survey:implemented by all subsidiaries,focusing on 7 areas in Toyotas Sub

282、sidiary management guide:clarifies roles/responsibilities for relevant depts.Operate both Toyota(internal)and external(subsidiaries,Group companies,etc.)Target companies selected using a risk-based approachcorporate culture,workplace environments,business operations,etc.Code of Conduct:human rights/

283、harassment,competition law,product regulations,information management,environment,taxaccounting,and briberyDaihatsus checks conducted through site visits by 4 Toyota staffProvided feedback and support,incl.GRC committee setup and sharing of expertiseCompany presidents comment on own company governan

284、ceBeginning in Japan and gradually expanding overseas External serves as channel for feedback that cant be raised/issues that cannot be resolved internallyStrengthened since last year to better grasp/reinforce subsidiary audit functionsAudits are more multifaceted,incl.corporate culture,workplace en

285、vironments,and compliance with key laws/regulationsSystemsToyota Motor Corporation investigated certain of its model certification applications as per instructionsfrom MLIT on January 26,2024.Although the investigation is still in progress,it has confirmed that since 2014seven models,including some

286、that have already been discontinued,were tested as part of such applications usingmethods that differed from government standards,and it reported this to MLIT on May 31,2024.The modelcertification applications in question involve three models currently in production(Corolla Axio,Corolla Fielder,and

287、Yaris Cross)and four discontinued models(Crown,Isis,Sienta,and RX).We take it seriously that the problem was discovered at Toyota Motor Corporation following the recentdiscovery of certification issues at Hino,Daihatsu and Toyota Industries.We will continue the investigation andtake appropriate acti

288、on,including conducting testing in the presence of third parties,under the guidance ofMLIT.Toyota is a company that is close to its local customers and practices product-centered management.Without wavering from this starting point,we will work hard together to create good cars that bring ourcustome

289、rs smile.And with the slogan“Lets change the future of cars,”we will accelerate our challenge ofcreating a mobility society together with many partners.Automotive OperationsToyotas sales revenues from its automotive operations were 41,266.2 billion in fiscal 2024,33,820.0 billion in fiscal 2023,and

290、28,605.7 billion in fiscal 2022.Toyota produces and sells passenger vehicles,minivans and commercial vehicles such as trucks.ToyotaMotor Corporations subsidiary,Daihatsu,produces and sells mini-vehicles and compact cars.Hino,also asubsidiary of Toyota Motor Corporation,produces and sells commercial

291、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 DevelopmentToyotas vehicles(produced by Toyota,Daihatsu and Hino)can be classified largely into electrifiedvehicles and conventiona

292、l engine vehicles.Toyotas product line-up includes subcompact and compact cars,21mini-vehicles,mid-size,luxury,sports and specialty cars,recreational and sport-utility vehicles,pickup trucks,minivans,trucks and buses.Toyotas luxury cars are sold in North America,Europe,Japan and other regions,primar

293、ily under the Lexus brand name.In fiscal 2022,Toyota launched the first-ever SUV Corolla model,Corolla Cross.Since the launch of thefirst-generation in 1966,the Corolla series has continued to evolve and embrace new challenges and has soldmore than 50 million units worldwide.The Noah and Voxy,cars s

294、upported and loved by many customers,including families among others,were completely redesigned as minivans with the further increased ease of useand enhanced advanced fixtures.In pursuit of a suite of features designed to enable customers to drive theirvehicles every day with joy,safety,peace of mi

295、nd,and comfort,while also realizing superior environmentalperformance,Toyota launched the HEV Aqua,which is the worlds first vehicle to use a high-output bipolarnickel-hydrogen battery as an electric drive battery.With elevated levels of driving performance,design,andadvanced technology,the all-new

296、NX,which is the first model to introduce the next generation of Lexus,isaccelerating the proliferation of electrified models by being Lexusfirst-ever PHEV also offered as a HEV.Inaddition,the new Toyota bZ series of BEVs that are easy to use and highly appealing,and the introduction of thisseries is

297、 a part of Toyotas efforts to reduce CO2emissions.Toyota launched the bZ4X,the first of the bZ series,which offers,in addition to a comfortable cabin,a new lifestyle and the opportunity to spend precious time withfamily and friends as well as the BEVs unique joy of driving.For motorsports cars,Toyot

298、a developed theGRMN Yaris as“embodiments of making ever-better motorsports-bred cars.”In fiscal 2023,Toyota launched the all-new Crown.While inheriting the Crowns DNA of innovation andlimit-pushing,it has been renewed as a flagship for a new era with four variations to meet the diverse values andlif

299、estyles 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 funct

300、ional SUVwith a mature atmosphere and ample driving space.The new series will be rolled out in about 40 countries andregions.Launched in 1997 as the worlds first mass-produced hybrid car,the Prius has driven uptake of HEVs asa new-generation eco-car with outstanding fuel efficiency;under the“Hybrid

301、Reborn”concept,the Prius wasrenewed as an exhilarating package that adds a design inspiring love at first sight and captivating drivingperformance to its core strength as an environmentally friendly car.For sportscars,the development of the GRCorolla,including a hydrogen engine-equipped GR Corolla d

302、esigned to participate in the Super Taikyuendurance race series,has carried forth the torch of making ever-better motorsports-bred cars.In addition,theLexus brand announced its first globally-available pure BEV model,the all-new RZ.The new RZ marks Lexustransition into a BEV-centered brand,and embod

303、ies the unique Lexus vehicle design and driving experiencebrought 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

304、and appreciation inall kinds of situations.To further contribute toward carbon neutrality,Toyota plans to introduce new PHEVs inthe future.Moreover,a new model has been added to the Century series,which has been sold for more than halfa century as a representative chauffeur-driven vehicle of Japan.I

305、t is a next-generation chauffeur-driven vehiclethat inherits Japanese aesthetics,quietness and hospitality,combines a human-centered approach,anddramatically evolves the rear-seat space to allow true comfort and elegant entry and exit.In Thailand,Toyotalaunched the Hilux Champ IMV 0,a new model of t

306、he IMV series.The pickup truck is regarded as a localfavorite and integral to daily life in Thailand.Toyota decided to return to its origins and create an IMV pickuptruck that meets the needs of customers.In addition,Toyota launched the all-new Lexus LBX.Redefining luxurywith a stylishly compact siz

307、e,it provides an engaging driving experience that instills a lasting desire to continueexploring the road ahead.22Markets,Sales and CompetitionToyotas primary markets are Japan,North America,Europe and Asia.The following table sets forthToyotas consolidated vehicle unit sales by geographic market fo

308、r the periods shown.The vehicle unit salesbelow reflect vehicle sales made by Toyota to unconsolidated entities(recognized as sales under Toyotasrevenue recognition policy),including sales to unconsolidated distributors and dealers.Vehicles sold by Daihatsuand Hino are included in the vehicle unit s

309、ales figures set forth below.Thousands of UnitsYear Ended March 31,202220232024Units%Units%Units%MarketJapan.1,92423.4%2,06923.5%1,99321.1%North America.2,39429.12,40727.32.81629.8Europe.1,01712.41,03011.71,19212.6Asia.1,54318.71,75119.81,80419.1Other*.1,35216.41,56517.71,63817.4Total.8,230100.0%8,8

310、22100.0%9,443100.0%*“Other”consists of Central and South America,Oceania,Africa and the Middle East,etc.The following table sets forth Toyotas vehicle unit sales and market share in Japan,North America,Europeand Asia on a retail basis for the periods shown.Each markets total sales and Toyotas sales

311、represent newvehicle registrations in the relevant year(except for the Asia market where vehicle registration does notnecessarily apply).All information on Japan excludes mini-vehicles.The sales information contained belowexcludes unit sales by Daihatsu and Hino,each a consolidated subsidiary of Toy

312、ota.Vehicle unit sales in Asia donot include sales in China.Thousands of UnitsYear Ended March 31,202220232024Japan:Total market sales(excluding mini-vehicles).2,6642,6962,906Toyota sales(retail basis,excluding mini-vehicles).1,3611,3771,506Toyota market share.51.1%51.1%51.8%Thousands of UnitsYear E

313、nded December 31,202120222023North America:Total market sales.17,86116,59718,762Toyota sales(retail basis).2,6812,4452,617Toyota market share.15.0%14.7%13.9%Europe:Total market sales.16,87014,89717,456Toyota sales(retail basis).1,0761,0811,174Toyota market share.6.4%7.3%6.7%Asia(excluding China):Tot

314、al market sales.9,22410,75710,714Toyota sales(retail basis).1,1891,3821,407Toyota market share.12.9%12.8%13.1%23JapanJapan is one of the leading countries with respect to technological advancements and improvements in theautomotive industry and will continue to demonstrate such strength.Toyota striv

315、es to earn customer satisfactionby introducing products distinctive of Japans manufacturing ability such as value-added products includingLexus models,FCEVs,PHEVs and HEVs,vehicles with three-seat rows and mini-vehicles.Toyota endeavors tosecure and maintain its significant share of and position ato

316、p,the Japanese market.Toyota held a domesticmarket share(excluding mini-vehicles)on a retail basis of 51.1%in fiscal 2022,51.1%in fiscal 2023 and 51.8%in fiscal 2024.Although Toyotas principle is to conduct production in regions where it enjoys true competitiveness,itconsiders Japan to be the source

317、 of its good manufacturing practices.Having 16 production sites in Japan,Toyotasupports 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 straddlemultiple reg

318、ions and supporting overseas factories.North AmericaThe North American region is one of Toyotas most significant markets.The United States,in particular,isthe largest market in the North American region,accounting for 86%of Toyotas retail sales in the region.In theregion,Toyota has in recent years r

319、eorganized its production structure and made improvements to its productlineup.In addition,Toyota has a wide product lineup in every segment(excluding large trucks and buses).Toyotas North American production capacities include the production of vehicle models such as the RAV4,Camry,Tacoma and Highl

320、ander through 13 manufacturing entities.In November 2021,Toyota created Toyota Battery Manufacturing,North Carolina(“TBMNC”)as the firstplant to produce automotive batteries for Toyota in North America.When it comes online in 2025,it is expectedthat TBMNC will have four production lines,each capable

321、 of delivering enough lithium-ion batteries for 200,000vehicles.In June 2023,Toyota decided to assemble an all-new,three-row battery electric SUV at Toyota MotorManufacturing Kentucky,Inc.(“TMMK”)starting in 2025.The BEV will be powered by batteries fromTBMNC.Further,in October 2023,Toyota decided t

322、o additionally invest in TBMNC and announced its plan tofurther strengthen production capability of BEV batteries and production of PHEV batteries.Toyota plans tosequentially add eight new battery production lines,with the aim of creating a total of ten BEV/PHEV batterylines,enabling the production

323、of a total of more than 30GWh annually.Toyota has five research and development centers in North America.As for vehicle development,theToyota Technical Center spearheads the design,planning,and evaluation of vehicles and parts as to their abilityto meet customer needs.EuropeToyotas principal Europea

324、n markets are Germany,France,the United Kingdom,Italy and Spain.In theEuropean markets,as a full-lineup car manufacturer,Toyota aims to increase its global vehicle sales with a focuson electrified vehicles(HEVs,PHEVs,FCEVs and BEVs)that suit the needs of customers and the circumstancesof each region

325、.In terms of production,to strengthen its business setup so that it is less likely to be affected by exchangerates,Toyota produces models such as the Corolla,Yaris and C-HR locally through six entities in Europe.Inaddition,Toyota is actively promoting production and sales measures that meet local de

326、mand by strengthening itsvalue chain including used car dealerships,after-sales services and finance and insurance services.24AsiaToyotas 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,T

327、oyota aimsto build an operational framework that is efficient and self-reliant,as well as a predominant position in theautomotive market in Asia.Toyota has responded to increasing competition in Asia by making strategicinvestments in the market and developing relationships with local suppliers.Toyot

328、a believes that its existinglocal presence in the market provides it with an advantage over new entrants to the market and expects to be ableto promptly respond to demand for vehicles in the region.In terms of production,Toyota manufactures models such as the Hilux,Hiace,Corolla,Camry and Viosthroug

329、h 15 entities.Toyotas plants in Thailand,not only to meet domestic demand but also to serve as aproduction base for locations inside and outside of the ASEAN region.ChinaToyota has been conducting operations in China in large part through joint ventures,and its success inproducing products that meet

330、 local demands and in establishing its sales and service network has significantlycontributed to Toyotas profits.Based on the firm business foundation that it has established,Toyota isconducting its operations with the aim of promoting further growth and increasing profitability through furtherdevel

331、opment 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 inrelation to the production and sales of vehicles,through joint ventures.Toyota has two major joint venturepartners in

332、China,namely,China FAW Group Corporation and Guangzhou Automobile Group Co.,Ltd.Thejoint venture with China FAW Group manufactures models such as the Corolla,RAV4,bZ4X and bZ3 and thejoint venture with Guangzhou Automobile Group Co.,Ltd.manufactures models such as the Camry,Levin,Highlander and bZ4X

333、.Total vehicle sales in the Chinese market were 25.99 million vehicles in 2023,105.6%of that of 2022,and24.62 million vehicles in 2022,97.8%of that of 2021.In this market,Toyotas sales were 1.90 million vehiclesin 2023,98.3%of that of 2022,and 1.94 million vehicles in 2022,100.0%of that of 2021.In the domesticallyproduced passenger vehicle market in mainland China(22.71 million vehicles),Toyota ha