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What changed in TOYOTA MOTOR CORP/'s 20-F — 2024 vs 2025

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Paragraph-level year-over-year comparison of TOYOTA MOTOR CORP/'s 2024 and 2025 20-F annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+818 added−717 removedSource: 20-F (2025-06-18) vs 20-F (2024-06-25)

Top changes in TOYOTA MOTOR CORP/'s 2025 20-F

818 paragraphs added · 717 removed · 486 edited across 6 sections

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeINFORMATION ON THE COMPANY 7 4.A HISTORY AND DEVELOPMENT OF THE COMPANY 7 4.B BUSINESS OVERVIEW 7 4.C ORGANIZATIONAL STRUCTURE 68 4.D PROPERTY, PLANTS AND EQUIPMENT 69 ITEM 4A. UNRESOLVED STAFF COMMENTS 70 ITEM 5.
Biggest changeINFORMATION ON THE COMPANY 7 4.A HISTORY AND DEVELOPMENT OF THE COMPANY 7 4.B BUSINESS OVERVIEW 10 4.C ORGANIZATIONAL STRUCTURE 80 4.D PROPERTY, PLANTS AND EQUIPMENT 81
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OPERATING AND FINANCIAL REVIEW AND PROSPECTS 71 5.A OPERATING RESULTS 71 5.B LIQUIDITY AND CAPITAL RESOURCES 94 5.C RESEARCH AND DEVELOPMENT, PATENTS AND LICENSES 98 5.D TREND INFORMATION 100 5.E CRITICAL ACCOUNTING ESTIMATES 100 ITEM 6.
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DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES 100 6.A DIRECTORS AND SENIOR MANAGEMENT 100 6.B COMPENSATION 107 6.C BOARD PRACTICES 116 6.D EMPLOYEES 117 6.E SHARE OWNERSHIP 118 6.F DISCLOSURE OF A REGISTRANT’S ACTION TO RECOVER ERRONEOUSLY AWARDED COMPENSATION 119 ITEM 7.
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MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS 119 7.A MAJOR SHAREHOLDERS 119 7.B RELATED PARTY TRANSACTIONS 120 7.C INTERESTS OF EXPERTS AND COUNSEL 121 ITEM 8. FINANCIAL INFORMATION 121 8.A CONSOLIDATED STATEMENTS AND OTHER FINANCIAL INFORMATION 121 8.B SIGNIFICANT CHANGES 123 ITEM 9.
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THE OFFER AND LISTING 123 9.A LISTING DETAILS 123 9.B PLAN OF DISTRIBUTION 123 9.C MARKETS 123 9.D SELLING SHAREHOLDERS 123 9.E DILUTION 123 9.F EXPENSES OF THE ISSUE 123 ITEM 10.
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ADDITIONAL INFORMATION 123 10.A SHARE CAPITAL 123 10.B MEMORANDUM AND ARTICLES OF ASSOCIATION 124 10.C MATERIAL CONTRACTS 130 Table of Contents Page 10.D EXCHANGE CONTROLS 130 10.E TAXATION 135 10.F DIVIDENDS AND PAYING AGENTS 141 10.G STATEMENT BY EXPERTS 141 10.H DOCUMENTS ON DISPLAY 141 10.I SUBSIDIARY INFORMATION 141 10.J ANNUAL REPORT TO SECURITY HOLDERS 141 ITEM 11.
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QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 141 ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES 142 12.A DEBT SECURITIES 142 12.B WARRANTS AND RIGHTS 142 12.C OTHER SECURITIES 142 12.D AMERICAN DEPOSITARY SHARES 142

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeIf Toyota incurs significant costs related to implementing safety measures or responding to laws, regulations and governmental actions, Toyota’s financial condition and results of operations may be adversely affected. Toyota may become subject to various legal proceedings.
Biggest changeIf Toyota incurs significant costs related to laws, regulations and governmental actions, Toyota’s financial condition, results of operations, cash flows and prospects may be materially and adversely affected. Such laws, regulations and governmental actions may also limit or restrict Toyota’s businesses or operations, which may also materially and adversely affect its financial condition, results of operations, cash flows and prospects.
Toyota depends on various information technology networks and systems, some of which are managed by third parties, to process, transmit and store electronic information, including sensitive data, and to manage or support a variety of business processes and activities, including manufacturing, research and development, supply chain management, sales and accounting.
Toyota depends on various information technology networks and systems, some of which are managed by third parties, to process, transmit and store electronic information, including sensitive data, and to manage or 3 support a variety of business processes and activities, including manufacturing, research and development, supply chain management, sales and accounting.
Increases in raw materials prices that Toyota and Toyota’s suppliers use in manufacturing their products or parts and components such as steel, precious metals, non-ferrous alloys including aluminum, and plastic parts, may lead to higher production costs for parts and components.
Increases in raw materials prices that Toyota and Toyota’s suppliers use in manufacturing their products or parts and components such as steel, precious metals, non-ferrous alloys including aluminum, and plastic parts, 5 may lead to higher production costs for parts and components.
In addition, Toyota may, in order to reassure its customers of the safety of Toyota’s vehicles, decide to voluntarily implement sales suspensions, recalls or other safety measures even if the vehicle complies with the safety standards of relevant laws and governmental regulations.
In addition, Toyota may, in order to reassure its customers of the safety of Toyota’s vehicles, decide to voluntarily implement sales suspensions, recalls or other safety measures even if the vehicle complies with the safety standards of relevant laws and regulations.
Despite security measures, Toyota’s digital and information technology networks and systems may be vulnerable to damage, disruptions, shutdowns due to unauthorized access or attacks by hackers, computer 3 Table of Contents viruses, breaches due to unauthorized use, errors or malfeasance by employees and others who have or gain access to the networks and systems Toyota depends on or otherwise uses, service failures or bankruptcy of third parties such as software development or cloud computing vendors, power shortages and outages, and utility failures or other catastrophic events like natural disasters.
Despite security measures, Toyota’s digital and information technology networks and systems may be vulnerable to damage, disruptions, shutdowns due to unauthorized access or attacks by hackers, computer viruses, breaches due to unauthorized use, errors or malfeasance by employees and others who have or gain access to the networks and systems Toyota depends on or otherwise uses, service failures or bankruptcy of third parties such as software development or cloud computing vendors, power shortages and outages, and utility failures or other catastrophic events like natural disasters.
In order to do so, it is necessary to further increase stakeholders’ confidence by ensuring that Toyota, the Toyota Group and its suppliers thoroughly comply with laws and regulations, provide safe, high-quality products that meet customer preferences and demand, as well as timely and appropriately disseminate information to stakeholders.
In order to do so, it is necessary to further increase stakeholders’ confidence by ensuring that Toyota, the Toyota Group and their suppliers thoroughly comply with laws and regulations, provide safe, high-quality products that meet customer preferences and demand, as well as timely and appropriately disseminate information to stakeholders.
(“Daihatsu”) announced vehicle model certification issues in March 2022 and in April 2023, respectively. In addition, Toyota Motor Corporation investigated certain of its model certification applications as per instructions from the 2 Table of Contents Ministry of Land, Infrastructure, Transport and Tourism of Japan (“MLIT”) on January 26, 2024.
(“Daihatsu”) 2 announced vehicle model certification issues in March 2022 and in April 2023, respectively. In addition, Toyota Motor Corporation investigated certain of its model certification applications as per instructions from the Ministry of Land, Infrastructure, Transport and Tourism of Japan (“MLIT”) on January 26, 2024.
As a result, Toyota may not be able to meet its goals, including those set forth in this annual report, on expected timing or within expected costs. 4 Table of Contents In particular, progress toward achieving Toyota’s climate-related targets requires significant investment of resources and management time, as well as further improvement of compliance and risk management systems, internal controls and other internal procedures.
As a result, Toyota may not be able to meet its goals, including those set forth in this annual report, on expected timing or within expected costs. In particular, progress toward achieving Toyota’s climate-related targets requires significant investment of resources and management time, as well as further improvement of compliance and risk management systems, internal controls and other internal procedures.
Such attacks have, in some cases, and could again disrupt critical operations, disclose sensitive data, interfere with information services and driving assistance functions in Toyota’s vehicles, and/or give rise to legal claims or proceedings, liability or regulatory penalties under applicable laws, which could have an adverse effect on Toyota’s brand image and its financial condition and results of operations.
Such attacks have, in some cases, and could again disrupt critical operations, disclose sensitive data, interfere with information services and driving assistance functions in Toyota’s vehicles, and/or give rise to legal claims or proceedings, liability or regulatory penalties under applicable laws, which could have an adverse effect on Toyota’s brand image and its financial condition, results of operations, cash flows and prospects.
Should the world economy suddenly deteriorate, a number of financial institutions and investors will face difficulties in providing capital to the financial markets at levels corresponding to their own financial capacity, 5 Table of Contents and, as a result, there is a risk that companies may not be able to raise capital under terms that they would expect to receive with their creditworthiness.
Should the world economy suddenly deteriorate, a number of financial institutions and investors will face difficulties in providing capital to the financial markets at levels corresponding to their own financial capacity, and, as a result, there is a risk that companies may not be able to raise capital under terms that they would expect to receive with their creditworthiness.
Toyota is in fact currently subject to a number of pending legal proceedings and government investigations. A negative outcome in one or more of these pending legal proceedings could adversely affect Toyota’s reputation, brand image, financial condition and results of operations. For a further discussion of governmental regulations, see “Item 4. Information on the Company — 4B.
Toyota is in fact currently subject to a number of pending legal proceedings and government investigations. A negative outcome in one or more of these pending legal proceedings could adversely affect Toyota’s reputation, brand image, financial condition, results of operations, cash flows and prospects. For a further discussion of governmental regulations, see “Item 4. Information on the Company — 4B.
Volatility in demand may lead to lower vehicle unit sales, which may result in downward price pressure and adversely affect Toyota’s financial condition and results of operations. Toyota’s future success depends on its ability to offer new, innovative and competitively priced products that meet customer demand on a timely basis.
Volatility in demand may lead to lower vehicle unit sales, which may result in downward price pressure and adversely affect Toyota’s financial condition, results of operations, cash flows and prospects. Toyota’s future success depends on its ability to offer new, innovative and competitively priced products that meet customer demand on a timely basis.
Toyota’s inability to develop and offer products that meet customers’ preferences and demand with respect to quality, safety, reliability, styling, sustainability and other features in a timely manner could result in a lower market share and reduced sales volumes and margins, and may adversely affect Toyota’s financial condition and results of operations.
Toyota’s inability to develop and offer products that meet customers’ preferences and demand with respect to quality, safety, reliability, styling, sustainability and other features in a timely manner could result in a lower market share and reduced sales volumes and margins, and may adversely affect Toyota’s financial condition, results of operations, cash flows and prospects.
Any failure, or perceived failure, by Toyota to achieve its climate-change related goals, including those set forth in this annual report, could adversely impact its reputation, financial condition and results of operations. Toyota’s operations are dependent on securing, retaining and developing talented, diverse employees.
Any failure, or perceived failure, by Toyota to achieve its climate-change related goals, including those set forth in this annual report, could adversely impact its reputation, financial condition, results of operations, cash flows and prospects. Toyota’s operations are dependent on securing, retaining and developing talented, diverse employees.
Any insufficient measures taken by Toyota, the Toyota Group or their suppliers to maintain and develop Toyota’s brand image and reputation may have an adverse effect on Toyota’s financial condition and results of operations. Toyota relies on suppliers for the provision of certain supplies including parts, components and raw materials.
Any insufficient measures taken by Toyota, the Toyota Group or their suppliers to maintain and develop Toyota’s brand image and reputation may have an adverse effect on Toyota’s financial condition, results of operations, cash flows and prospects. Toyota relies on suppliers for the provision of certain supplies including parts, components and raw materials.
If Toyota is unable to adequately respond to the changes and competition in automobile financing, Toyota’s financial services operations may adversely affect its financial condition and results of operations. Toyota’s operations and vehicles rely on various digital and information technologies, as well as information security, which are subject to frequent attack.
If Toyota is unable to adequately respond to the changes and competition in automobile financing, Toyota’s financial services operations may adversely affect its financial condition, results of operations, cash flows and prospects. Toyota’s operations and vehicles rely on various digital and information technologies, as well as information security, which are subject to frequent attack.
However, competition for such employees is intense and if Toyota cannot recruit and retain diverse employees with a high level of expertise and extensive experience as planned, or it is unable to provide its employees with the opportunities, training and resources they need to develop themselves further, it may reduce Toyota’s competitiveness, and its financial condition, results of operations and cashflow could be adversely affected.
However, competition for such employees is intense and if Toyota cannot recruit and retain diverse employees with a high level of expertise and extensive experience as planned, or it is unable to provide its employees with the opportunities, training and resources they need to develop themselves further, it may reduce Toyota’s competitiveness, and its financial condition, results of operations, cash flows and prospects could be adversely affected.
Toyota’s inability to maintain well-developed sales techniques and distribution networks may result in decreased sales and market share and may adversely affect its financial condition and results of operations. Toyota’s success is significantly impacted by its ability to maintain and develop its brand image and reputation.
Toyota’s inability to maintain well-developed sales techniques and distribution networks may result in decreased sales and market share and may adversely affect its financial condition, results of operations, cash flows and prospects. Toyota’s success is significantly impacted by its ability to maintain and develop its brand image and reputation.
Nonetheless, a negative impact resulting from fluctuations in foreign currency exchange rates and changes in interest rates may adversely affect Toyota’s financial condition and results of operations. For a further discussion of currency and interest rate fluctuations and the use of derivative financial instruments, see “Item 5.
Nonetheless, a negative impact resulting from fluctuations in foreign currency exchange rates and changes in interest rates may adversely affect Toyota’s financial condition, results of operations, cash flows and prospects. For a further discussion of currency and interest rate fluctuations and the use of derivative financial instruments, see “Item 5.
Increased competition may lead to lower vehicle unit sales, which may result in a further downward price pressure and adversely affect Toyota’s financial condition and results of operations.
Increased competition may lead to lower vehicle unit sales, which may result in a further downward price pressure and adversely affect Toyota’s financial condition, results of operations, cash flows and prospects.
Business Overview — Climate Change-related Disclosures.” Furthermore, Toyota has published disclosures on climate-change related matters relating to its business and its partners. Such disclosures include forward-looking statements based on Toyota’s expectations and assumptions, involving substantial discretion and forecasts about costs and future circumstances, which may prove to be incorrect.
Information on the Company — 4B. Business Overview — Climate Change-related Disclosures.” Furthermore, Toyota has published disclosures on climate-change related matters relating to its business and its partners. Such disclosures include forward-looking statements based on Toyota’s expectations and 4 assumptions, involving substantial discretion and forecasts about costs and future circumstances, which may prove to be incorrect.
Should the major markets in which Toyota purchases materials, parts and components and supplies for the manufacture of Toyota products or in which Toyota’s products are produced, distributed or sold be affected by any of these events, it may result in future disruptions, delays and other adverse changes in the operations of Toyota’s business. 6 Table of Contents
Should the major markets in which Toyota purchases materials, parts and components and supplies for the manufacture of Toyota products or in which Toyota’s products are produced, distributed or sold be affected by any of these events, it may result in future disruptions, delays and other adverse changes in the operations of Toyota’s business. ITEM 4.
If Toyota is unable to raise the necessary capital under appropriate conditions on a timely basis, Toyota’s financial condition and results of operations may be adversely affected. Regulatory, Legal, Political and Other Risks The automotive industry is subject to various governmental regulations and actions.
If Toyota is unable to raise the necessary capital under appropriate conditions on a timely basis, Toyota’s financial condition, results of operations, cash flows and prospects may be adversely affected. Regulatory, Legal, Political and Other Risks The automotive industry is subject to various laws, regulations and governmental actions. The worldwide automotive industry is subject to various laws and regulations.
These factors include the ability of Toyota’s suppliers to provide a continued source of supply, and Toyota’s ability to effectively compete and obtain competitive prices from suppliers. Circumstances that may adversely affect such abilities include geopolitical tensions as well as related governmental actions such as economic sanctions.
These factors include the ability of Toyota’s suppliers to provide a continued source of supply, and Toyota’s ability to effectively compete and obtain competitive prices from suppliers. Circumstances that may adversely affect such abilities include geopolitical tensions as well as related governmental actions such as economic sanctions and export controls that may be relevant to certain suppliers.
Demand may also be affected by factors directly impacting vehicle price or the cost of purchasing and 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).
In addition, demand has been affected, and may in the future be affected by, factors directly impacting vehicle price or the cost of purchasing and 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).
Toyota’s inability to develop and offer products that meet customers’ preferences and demand in a timely manner could result in a lower market share and reduced sales revenues and margins, and may adversely affect Toyota’s financial condition and results of operations. For a further discussion of risks associated with climate change, see “Item 4. Information on the Company — 4B.
Toyota’s inability to develop and offer products that meet customers’ preferences and demand in a timely manner could result in a lower market share and reduced sales revenues and margins, and may adversely affect Toyota’s financial condition, results of operations cash flows and prospects. For a further discussion of risks associated with climate change, see “Item 4.
A loss of any single or limited source supplier, or inability to obtain supplies from suppliers in a timely and cost-effective manner, could lead to increased costs or delays or suspensions in Toyota’s production and deliveries, which could have an adverse effect on Toyota’s financial condition and results of operations. The worldwide financial services industry is highly competitive.
A loss of any single or limited source supplier, or inability to obtain supplies from suppliers in a timely and cost-effective manner, could lead to increased costs or delays or suspensions in Toyota’s production and deliveries, which could have an adverse effect on Toyota’s financial condition, results of operations, cash flows and prospects.
The worldwide financial services industry is highly competitive. Increased competition in automobile financing may lead to decreased margins. A decline in Toyota’s vehicle unit sales, an increase in residual value risk due to lower used vehicle prices, an increase in the ratio of credit losses and increased funding costs are additional factors which may impact Toyota’s financial services operations.
A decline in Toyota’s vehicle unit sales, an increase in residual value risk due to lower used vehicle prices, an increase in the ratio of credit losses and increased funding costs are additional factors which may impact Toyota’s financial services operations.
The physical risks of climate change include both acute, event-driven risks such as those relating to hurricanes, floods and tornadoes, as well as longer-term weather patterns and related effects, such as sustained higher temperatures, sea level rise, drought and increased wildfires.
The physical risks of climate change include both acute, event-driven risks such as those relating to hurricanes, floods and tornadoes, as well as longer-term weather patterns and related effects, such as sustained higher temperatures, sea level rise, drought and increased wildfires. Despite Toyota’s contingency planning, in addition to large-scale disasters due to extreme weather conditions.
Toyota Motor Corporation 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, and it reported this to MLIT on May 31, 2024. See “Item 4.
Toyota Motor Corporation 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, and it reported this to the MLIT on May 31, 2024. In July 2024, Toyota Motor Corporation received a correction order from the MLIT regarding its model certification applications.
If Toyota launches products that result in safety measures such as recalls (including where parts related to recalls or other measures were procured by Toyota from a third party), Toyota may incur various costs including significant costs for free repairs. Similarly, many governments also impose tariffs and other trade barriers, taxes and levies, or enact price or exchange controls.
If Toyota launches products that result in safety measures such as recalls (including where parts related to recalls or other measures were procured by Toyota from a third party), Toyota may incur various costs including significant costs for free repairs.
Toyota has incurred significant costs in response to governmental regulations and actions, including costs relating to changes in global trade dynamics and policies, and expects to incur such costs in the future. Furthermore, new legislation or regulations or changes in existing legislation or regulations may also subject Toyota to additional costs in the future.
Toyota has incurred significant costs as a result of laws, regulations and governmental actions or in response thereto, and expects to incur such costs in the future. Furthermore, new legislation or regulations or changes in existing legislation or regulations may also subject Toyota to additional costs in the future.
Furthermore, the failure to comply with such regulations could result in legal proceedings, recalls, negotiated remedial actions, fines, corrective orders, revocations of government approvals and the imposition of other government sanctions, restricted product offerings, compensatory payments or adverse consequences.
The failure to comply with such regulations could result in legal proceedings, recalls, negotiated remedial actions, fines, corrective orders, revocations of government approvals and the imposition of other government sanctions, restricted product offerings, compensatory payments or adverse consequences. Similarly, many governments also impose tariffs and other trade barriers, taxes and levies, or enact export, price or exchange controls.
Despite Toyota’s contingency planning, in addition to large-scale disasters due to extreme weather conditions. the increase and intensification of severe weather events such as heat waves is expected to increase the risk of heat stroke and water shortages due to drought.
The increase and intensification of severe weather events such as heat waves is expected to increase the risk of heat stroke and water shortages due to drought.
In particular, automotive manufacturers such as Toyota are required to implement safety measures such as recalls for vehicles that do not or may not comply with the safety standards of laws and governmental regulations.
For example, Toyota is subject to various laws and regulations related to vehicle safety and environmental matters such as emission levels, fuel economy, noise and pollution. In particular, automotive manufacturers such as Toyota are required to implement safety measures such as recalls for vehicles that do not or may not comply with the safety standards prescribed in laws and regulations.
Changes in demand for automobiles are continuing, and it is unclear 1 Table of Contents how this situation will transition in the future. Toyota’s financial condition and results of operations may be adversely affected if the changes in demand for automobiles continues or progresses further beyond Toyota’s expectations.
Toyota’s financial condition, results of operations, cash flows and prospects may be adversely affected if the changes in demand for automobiles continue or progress further beyond Toyota’s expectations.
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Reviewing the world economy for fiscal 2024, it remained steady mainly in the U.S., where employment stayed 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 as semiconductor supply constraints eased.
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Reviewing the world economy for fiscal 2025, the U.S. economy remained resilient, supported by stable employment and income conditions. In China, although the real estate downturn continued to weigh on the economy, fiscal policy measures provided underlying support. As a result, according to our research, the global economy maintained a growth rate of around 3%.
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The worldwide automotive industry is subject to various laws and governmental regulations including those related to vehicle safety and environmental matters such as emission levels, fuel economy, noise and pollution.
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Meanwhile, in the automotive market, the pace of growth rate 1 moderated as the pent-up demand that followed the easing of semiconductor supply constraints was largely absorbed. Changes in demand for automobiles are continuing, and it is unclear how this situation will transition in the future.
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Following on-site investigations, the MLIT indicated eight new cases involving seven vehicles that did not comply with the standards. In August 2024, Toyota Motor Corporation submitted a report on measures to prevent recurrence of such conduct to the MLIT. See “Item 4.
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The worldwide financial services industry is highly competitive. The worldwide financial services industry is highly competitive. Increased competition in automobile financing may lead to decreased margins.
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For example, in 2025, a significant increase in tariffs on exports to the United States, including tariffs specifically related to the automotive industry, were announced together with other changes to U.S. trade policy, and other nations have announced retaliatory tariffs and trade policy changes in response to them.
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We cannot predict the timing, duration, scope or extent of any future changes to such tariffs and trade policies, or of other tariffs or trade-related actions. In addition, export controls governing components incorporated into certain vehicles also have been enacted.
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The recently announced tariffs and trade actions have increased the cost of our products and may cause stagnation in demand for them in the future. They have also adversely affected our supply chains and distribution networks, which negatively impacts our production and sales.
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The effects described above are primarily focused in the United States, but they are not limited to the United States, given our cross-border operations.
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Should the current situation continue for an extended period, it could potentially negatively impact not only us but other participants in the entire automotive industry as well as related industries, which could in turn further adversely affect our financial condition, results of operations, cash flows and prospects.
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Furthermore, our efforts to mitigate the impact of such tariffs or trade-related actions may themselves require us to incur costs and dedicate management attention. 6 Toyota may become subject to various legal proceedings.
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INFORMATION ON THE COMPANY 4.A HISTORY AND DEVELOPMENT OF THE COMPANY Toyota Motor Corporation is a limited liability, joint-stock company incorporated under the Commercial Code of Japan and continues to exist under the Companies Act of Japan (the “Companies Act”).
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Toyota commenced operations in 1933 as the automobile division of Toyota Industries Corporation (formerly Toyoda Automatic Loom Works, Ltd., “Toyota Industries”). Toyota became a separate company in August 1937. In 1982, the Toyota Motor Company and Toyota Motor Sales merged into one company, the Toyota Motor Corporation of today.
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As of March 31, 2025, Toyota operated through 585 consolidated subsidiaries (including structured entities) and 165 associates and joint ventures accounted for by the equity method. See “Item 4.
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Information on the Company — 4.B Business Overview — Capital Expenditures and Divestitures” for a description of Toyota’s principal capital expenditures and divestitures between April 1, 2022 and March 31, 2025 and information concerning Toyota’s principal capital expenditures and divestitures currently in progress. Toyota’s principal executive offices are located at 1 Toyota-cho, Toyota City, Aichi Prefecture 471-8571, Japan.
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Toyota’s telephone number in Japan is +81-565-28-2121. The SEC maintains a website (https://www.sec.gov/) that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC. Toyota also maintains a website (https://global.toyota/en/) through which its annual reports on Form 20-F and certain of its other SEC filings may be accessed.
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Information contained on or accessible through Toyota’s website is not part of this annual report on Form 20-F. 7 Recent Developments Toyota Industries On June 3, 2025, TMC, Toyota Industries and TOYOTA FUDOSAN CO., LTD. (“Toyota Fudosan”) announced the intention to conduct a series of transactions are aimed to result in, among other things, Toyota Industries being taken private.
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Toyota Industries is an equity method associate of TMC; it also owns 9.16% of the outstanding shares of our common stock as of March 31, 2025. Background TMC is taking measures to “transform into a mobility company” and aiming to contribute to the development of the mobility industry in Japan and the world through these measures.
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Mobility involves four perspectives, namely, the movement of people, goods, information, and energy. Among these, TMC is working on the evolution of cars from the perspective of movement of people and is aiming to contribute to the realization of a “mobility society” full of smiles.
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On the other hand, TMC believes that in order for the Toyota Group to “transform into a mobility company,” it is necessary to focus not only on movement of people but also on movement of goods.
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TMC believes that Toyota Industries, which engages in the materials handling equipment business within the Toyota Group for development, manufacture, and sale of products and services of wide-ranging domains, from lift trucks to logistics equipment and systems, and which is a leading company regarding the movement of goods, is indispensable for these transformations, and that it is important to further strengthen its competitiveness.
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In addition, Toyota Group companies have been working to improve capital efficiency by selling shares mutually held among Toyota Group companies and effectively leveraging the funds obtained through the sale, while maintaining the capital ties that have sustained a strong relationship among the group companies.
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As a result, TMC came to consider that Toyota Industries’ utilizing the Toyota Group’s platforms (such as network, business, technology, human resources) to the utmost extent, deepening business collaboration and cooperation with Toyota Group companies, and achieving growth from a long-term perspective as a leading company regarding movement of goods, while maintaining and strengthening its current revenue business base, without preconceiving concerns over short-term deterioration of business performance, will contribute to improvement of the corporate value of Toyota Industries and ultimately the entire Toyota Group, which is advancing initiatives for the transformation into a mobility company.
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Based on the above background, the parties agreed that Toyota Industries should go private in order for Toyota Industries to lead within the Toyota Group the business domain centered on movement of goods, such as materials handling equipment and logistics solutions, while the Toyota Group transforms into a corporate group that leads the mobility industry supporting the movement of people, goods, information, and energy, and to strengthen the competitiveness of Toyota Industries’ automotive business through further deepening of collaboration with the Toyota Group.

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

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Biggest changeInvestment primarily in technology and products by Prime Planet Energy & Solutions, Inc. 88.7 Japan Internal funds Investment primarily in technology and products by Toyota Auto Body Co., Ltd. 84.6 Japan Internal funds Investment primarily in technology and products by Toyota Motor Kyushu, Inc. 78.6 Japan Internal funds Investment primarily in technology and products by Primearth EV Energy Co., Ltd. 69.0 Japan Internal funds Investment primarily in technology and products by Hino Motors, Ltd. 65.4 Japan Internal funds Outside of Japan Investment primarily to promote localization by Toyota Battery Manufacturing, Inc. 307.9 United States Internal funds Investment primarily to promote localization by Toyota Motor Manufacturing de Guanajuato, S.A. de C.V. 196.0 Mexico Internal funds 65 Table of Contents Description of Activity Total Cost (Yen in billions) Location Primary Method of Financing Investment primarily to promote localization by Toyota Motor Manufacturing Canada, Inc. 168.4 Canada Internal funds Investment primarily to promote localization by Toyota Motor Manufacturing, Indiana, Inc. 168.3 United States Internal funds Investment primarily to promote localization by Toyota Motor Manufacturing, Kentucky, Inc. 156.0 United States Internal funds Investment primarily to promote localization by Toyota Motor Manufacturing Texas, Inc. 138.1 United States Internal funds Investment primarily to promote localization by Toyota Motor Thailand Co., Ltd. 87.4 Thailand Internal funds Investment primarily to promote localization by Toyota Motor Europe NV/SA 66.3 Belgium Internal funds Investment primarily in leased automobiles by Toyota Motor Credit Corporation 5,236.0 United States Internal funds, financing from issuance of bonds, etc.
Biggest changeInvestment primarily in technology and products by Prime Planet Energy & Solutions, Inc. 129.2 Japan Capital Increase Investment primarily in technology and products by Toyota Auto Body Co., Ltd. 96.4 Japan Internal funds Investment primarily in technology and products by Hino Motors, Ltd. 73.6 Japan Internal funds Investment primarily in technology and products by Toyota Motor Kyushu, Inc. 62.4 Japan Internal funds Outside of Japan Investment primarily to promote localization by Toyota Battery Manufacturing, Inc. 646.3 United States Internal funds Investment primarily to promote localization by Toyota Motor Manufacturing, Kentucky, Inc. 186.3 United States Internal funds Investment primarily to promote localization by Toyota Motor Manufacturing De Guanajuato, S.A. de C.V. 185.3 Mexico Internal funds Investment primarily to promote localization by Toyota Motor Manufacturing, Indiana, Inc. 175.5 United States Internal funds Investment primarily to promote localization by Toyota Motor Manufacturing Canada, Inc. 137.4 Canada Internal funds Investment primarily to promote localization by Toyota Motor Thailand Co., Ltd. 107.2 Thailand Internal funds Investment primarily to promote localization by Toyota Motor Technical Center (China) Co., Ltd. 105.0 China Internal funds Investment primarily to promote localization by Toyota do Brazil LTDA. 85.3 Brazil Internal funds Investment primarily to promote localization by Toyota Motor Manufacturing, Texas, Inc. 68.6 United States Internal funds 77 Description of Activity Total Cost (Yen in billions) Location Primary Method of Financing Investment primarily in leased automobiles by Toyota Motor Credit Corporation 6,202.5 United States Internal funds, financing from issuance of bonds, etc.
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 drive—to strive toward such a future, we will continue our transformation into a mobility company in following three domains.
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 drive—to strive toward such a future, we will continue our transformation into a mobility company in the following three domains.
The strategy’s basic premise is that we need to move away from fossil fuels from the perspective of the global environment and sustainability. Furthermore, over the medium- to long- term, renewable energy sources will continue to proliferate, with electricity and hydrogen emerging as the primary energy sources sustaining society.
The strategy’s basic premise is that we need to move away from fossil fuels from the perspective of the global environment and sustainability. Furthermore, over the medium- to long- term, renewable energy sources will continue to proliferate, with electricity and hydrogen emerging as the primary energy sources sustaining society.
Hino announced that, through such investigation, it identified past misconduct in relation to its applications for certification concerning the emissions and the fuel economy performance of certain of its engines for the Japanese market. In Japan, Hino was subject to an on-site inspection from MLIT, and received a corrective action order from it.
Hino announced that, through such investigation, it identified past misconduct in relation to its applications for certification concerning the emissions and the fuel economy performance of certain of its engines for the Japanese market. In Japan, Hino was subject to an on-site inspection from the MLIT, and received a corrective action order from it.
Toyota has coordinated with relevant parties to establish a vehicle take-back and recycle system throughout Japan. As a result, in fiscal 2023, Toyota achieved a recycling/recovery rate of 97% for automobile shredder residue (the legal requirement being 70%) and 95% for air bags (the legal requirement being 85%) and reached the targets set forth in this law. U.S.
Toyota has coordinated with relevant parties to establish a vehicle take-back and recycle system throughout Japan. As a result, in fiscal 2023, Toyota achieved a recycling/recovery rate of 97% for automobile shredder residue (the legal requirement being 70%) and 95% for air bags (the legal requirement being 85%) and reached the targets set forth in this law. 55 U.S.
On the durability front, FCEVs could stay on the road 2.5 times as long as standard diesel machines before requiring maintenance, making them virtually maintenance-free over the life of a vehicle. Compared with current cells, Toyota’s next-generation systems will also halve the cost of fabricating a stack and increase cruising range by 20%.
On the durability front, FCEVs could stay on the road 36 2.5 times as long as standard diesel machines before requiring maintenance, making them virtually maintenance-free over the life of a vehicle. Compared with current cells, Toyota’s next-generation systems will also halve the cost of fabricating a stack and increase cruising range by 20%.
Selected Initiatives We made a New Management Policy & Direction Announcement on April 7, 2023. Our new management structure’s theme is “inheritance and evolution.” The most important value we have cultivated is “Let’s make ever-better cars!” While talking about cars on the front lines and striving hard to bring smiles to customers’ faces, we continue to pursue ever-better cars.
Selected Initiatives We made a New Management Policy & Direction Announcement on April 7, 2023. Our new management structure’s theme is “inheritance and evolution.” The most important value we have cultivated is “Let’s make 13 ever-better cars!” While talking about cars on the front lines and striving hard to bring smiles to customers’ faces, we continue to pursue ever-better cars.
In addition to promoting implementation in cities with populations of around 300,000, which are common in Japan, we will also work to develop standards for these vehicles and develop an energy management system that is integrated with operation management to lessen the social burden associated with the introduction and use of electric vehicles and address transportation-related issues.
In addition to promoting implementation in cities with populations of around 300,000, which are common in Japan, we will work to develop standards for these vehicles and develop an energy management system that is integrated with operation management to lessen the social burden associated with the introduction and use of electric vehicles and address transportation-related issues.
Toyota believes that its research and development initiatives, particularly the development of environmentally friendly new vehicle technologies, vehicle safety and information technology, provide it with a strategic advantage. Toyota Philosophy The automotive industry is experiencing a once-in-a-century transformation. We are now striving to transform ourselves into a mobility company.
Toyota believes that its research and development initiatives, particularly the development of environmentally friendly new vehicle technologies, vehicle safety and information technology, provide it with a strategic advantage. 12 Toyota Philosophy The automotive industry is experiencing a once-in-a-century transformation. We are now striving to transform ourselves into a mobility company.
In relation to this, environmental regulations, such as the National Emissions Ceilings Directive, or NEC Directive (2016/2284/EU), the Industrial Emissions Directive, or IED Directive (2010/75/EU), and Directive 2007/46/EC, which is intended to control on-road emission sources, have been established, and emissions are managed under these directives based on their source.
In relation to these Directives, environmental regulations, such as the National Emissions Ceilings Directive, or NEC Directive (2016/2284/EU), the Industrial Emissions Directive, or IED Directive (2010/75/EU), and Directive 2007/46/EC, which is intended to control on-road emission sources, have been established, and emissions are managed under these directives based on their source.
MISSION Producing Happiness for All Using our technology, we work towards a future of convenience and happiness, available to all VISION Creating Mobility for All Toyota strives to raise the quality and availability of mobility so that individuals, businesses, municipalities and communities can do more, while achieving a sustainable relationship with our planet VALUE We unite our three strengths (Software, Hardware and Partnerships) to create new and unique value that comes from the Toyota Way Toyota Production System (“TPS”) TPS is imbued with the desire of Sakichi Toyoda, the founder of the Toyota Group, and Kiichiro Toyoda, the founder, “to make someone’s work easier.” TPS was established based on two concepts: Jidoka, which can be loosely translated as “automation with a human touch,”—an idea of stopping equipment immediately when a problem occurs, in order to prevent defective products from being produced—and “ Just in Time ” (“JIT”), a concept based on the idea that “each process produces only what is needed for the next process in a continuous flow.” Based on the basic philosophies of jidoka and JIT, through TPS, Toyota aims to efficiently and quickly produce vehicles of sound quality, one at a time, to fully satisfy customer requirements.
MISSION Producing Happiness for All Using our technology, we work towards a future of convenience and happiness, available to all VISION Creating Mobility for All Toyota strives to raise the quality and availability of mobility so that individuals, businesses, municipalities and communities can do more, while achieving a sustainable relationship with our planet VALUE We unite our three strengths (Software, Hardware and Partnerships) to create new and unique value that comes from the Toyota Way Toyota Production System (“TPS”) TPS is imbued with the desire of Sakichi Toyoda, the founder of the Toyota Group, and Kiichiro Toyoda, the founder, “to make someone’s work easier.” TPS was established based on two concepts: Jidoka, which can be loosely translated as “automation with a human touch,”—an idea of stopping equipment immediately when a problem occurs, in order to prevent defective products from being produced—and “Just in Time” (“JIT”), a concept based on the idea that “each process produces only what is needed for the next process in a continuous flow.” Based on the basic philosophies of jidoka and JIT, through TPS, Toyota aims to efficiently and quickly produce vehicles of sound quality, one at a time, to fully satisfy customer requirements.
Working in concert with approximately 110 law firms around the world, we also collect intellectual property information and take measures suitable for any intellectual property disputes that may arise in specific countries or regions. To enhance activities that incorporate management, R&D and intellectual property in one, Toyota has an Intellectual Property Management Committee.
Working in concert with approximately 110 law firms around the world, we also collect intellectual property information and take measures suitable for any intellectual property disputes that may arise in specific countries or regions. To enhance activities that incorporate management, R&D and intellectual property in one, Toyota has 76 an Intellectual Property Management Committee.
Connecting people and cars, and social systems and cars, will create an ecosystem that becomes part of the social system, leading to the realization of well-being. Arene OS is a software platform that accelerates such intelligence, providing applications that bring a comfortable riding experience through advanced safety technologies and infotainment in the in-car experience.
Connecting people and cars, and social systems and cars, will create an ecosystem that becomes part of the social system, leading to the realization of well-being. Arene is a software platform that accelerates such intelligence, providing applications that bring a comfortable riding experience through advanced safety technologies and infotainment in the in-car experience.
This was the first time that a vice chair was elected from outside Europe. Vehicle Emissions Japanese Standards The Air Pollution Control Act of Japan and the Road Transport Vehicle Act and the Act Concerning Special Measures for Total Emission Reduction of Nitrogen Oxides and Particulate Matter from Automobiles in Specified Areas regulate vehicle emissions in Japan.
This was the first time that a vice chair was elected from outside Europe. Vehicle Emissions Japanese Standards The Air Pollution Control Act of Japan and the Road Transport Vehicle Act and the Act Concerning Special Measures for Total Emission Reduction of Nitrogen Oxides and Particulate Matter from Automobiles in 47 Specified Areas regulate vehicle emissions in Japan.
International Harmonization of Vehicle Regulations The World Forum for Harmonization of Vehicle Regulations (“WP.29”) of the United Nations Economic Commission for Europe (“UNECE”) has developed certain international rules and regulations such as the UN Regulations (“UNR”) under the 1958 Agreement and the Global Technical Regulations (“GTR”) under the 1998 Agreement and has been working to promote international harmonization of the technical prescriptions for the construction and approval of wheeled vehicles.
International Harmonization of Vehicle Regulations The World Forum for Harmonization of Vehicle Regulations (“WP.29”) of the United Nations Economic Commission for Europe has developed certain international rules and regulations such as the UN Regulations (“UNR”) under the 1958 Agreement and the Global Technical Regulations (“GTR”) under the 1998 Agreement and has been working to promote international harmonization of the technical prescriptions for the construction and approval of wheeled vehicles.
Certain emissions reduction targets referenced below have been set by Toyota with reference to and in line with criteria established by the Science Based Targets Initiative (“SBTi”); however, such targets are not set forth in this annual report based upon the authority of or in reliance upon SBTi as experts with respect to such targets.
Certain emissions reduction targets referenced below have been set by Toyota with reference to and in line with criteria established by the Science Based Targets Initiative (“SBTi”); however, such targets are not set forth in this annual report based upon the authority of or in reliance upon SBTi as experts with respect to such targets. 1.
Through the integration of materials development technologies of both companies, including Idemitsu’s materials manufacturing technologies and Toyota’s battery processing and assembly technologies honed in on electrified vehicle development, we both aim to realize the mass production of solid electrolytes and all-solid-state batteries that will be widely used by consumers.
Through the integration of materials 35 development technologies of both companies, including Idemitsu’s materials manufacturing technologies and Toyota’s battery processing and assembly technologies honed in on electrified vehicle development, we both aim to realize the mass production of solid electrolytes and all-solid-state batteries that will be widely used by consumers.
In these Level 3 Fuel Consumption Regulations for passenger vehicles, the regulation framework was substantially revised, such as the introduction of new regulations requiring automobile manufacturers to meet standards of corporate average fuel consumption across models in addition to existing regulations requiring each model to meet consumption standards.
In these Level 3 Fuel Consumption Regulations for passenger vehicles, the regulation framework was substantially revised, such as the introduction of new regulations requiring automobile manufacturers to meet standards of corporate average fuel consumption across models in 52 addition to existing regulations requiring each model to meet consumption standards.
The chart below shows the number of Toyota distributors as of March 31, 2024 by country and region: Country/Region Number of Countries Number of Distributors North America 3 5 Europe 53 29 China 1 4 Asia (excluding China) 19 13 Oceania 17 15 Middle East 16 14 Africa 56 48 Central and South America 39 40 Multi-pathway Strategy — Overview The push for carbon neutrality is a matter of urgency if cars are to remain a necessary part of society.
The chart below shows the number of Toyota distributors as of March 31, 2025 by country and region: Country/Region Number of Countries Number of Distributors North America 3 5 Europe 53 29 China 1 4 Asia (excluding China) 19 13 Oceania 17 15 Middle East 16 14 Africa 56 48 Central and South America 39 40 Multi-pathway Strategy — Overview The push for carbon neutrality is a matter of urgency if cars are to remain a necessary part of society.
By also honing the vehicles’ essential attributes, we will create cars that are more fun to drive in terms of both hardware and software. Intelligent services will include new services that connect cars to cities and infrastructure.
By also honing the vehicles’ essential attributes, we will create cars that are more fun to drive in terms of both hardware and software. 16 Intelligent services will include new services that connect cars to cities and infrastructure.
This new generation of BEVs will double driving range by compared to that of the current bZ4X using batteries with greater efficiency while also offering design and driving performance to set hearts racing.
This new generation of BEVs will double driving range by compared to that of the current bZ4X using batteries with far greater efficiency while also offering design and driving performance to set hearts racing.
Under the Trump Administration, the EPA and the NHTSA proposed less stringent greenhouse gas emission standards and CAFE standards, and the withdrawal of California’s waiver to issue its own, more stringent greenhouse gas emission standards under the LEV III program.
Under the first Trump Administration, the EPA and the NHTSA proposed less stringent greenhouse gas emission standards and CAFE standards, and the withdrawal of California’s waiver to issue its own, more stringent greenhouse gas emission standards under the LEV III program.
Under such circumstances, as a result of Toyota’s continued collaboration with dealers in various countries and regions and efforts to expand products and services that meet customer needs, Toyota’s share of financing provided for new car sales of Toyota and Lexus vehicles in regions where Toyota Financial Services Corporation operates remained at a high level of approximately 30%, and the balance of earning assets continued to steadily increase.
Under such circumstances, as a result of Toyota’s continued collaboration with dealers in various countries and regions and efforts to expand products and services that meet customer needs, Toyota’s share of financing provided for new car sales of Toyota and Lexus vehicles in regions where Toyota Financial Services Corporation operates remained at a high level of approximately 35%, and the balance of earning assets continued to steadily increase.
The shift to intelligent cars will involve expanding advanced safety technology, multimedia, and other constantly evolving feature updates to all of our vehicles. At the same time, alongside advances in the onboard operating system, our next-generation BEVs will enable users to customize “ride feel” according to their preferences for how the vehicle runs, turns, and stops.
The shift to intelligent cars will involve expanding advanced safety technology, multimedia, and other constantly evolving feature updates to all of our vehicles. At the same time, alongside advances in the onboard operating system, our next-generation BEVs will enable users to customize “ride feel” according to their preferences for how the vehicle accelerates, turns, and stops.
One such initiative for drivers is the Toyota Driver Communication safe driving technique seminar held periodically at Toyota Safety Education Center Mobilitas, on the grounds of Fuji Speedway. For pedestrians, in cooperation with Toyota dealers across Japan, Toyota has been donating traffic safety teaching materials to kindergartens and nursery schools nationwide since 1969.
One such initiative for drivers is the Toyota Driver Communication safe driving technique seminar held periodically at Toyota Safety Education Center Mobilitas, which is located on the grounds of Fuji Speedway. For pedestrians, in cooperation with Toyota dealers across Japan, Toyota has been donating traffic safety teaching materials to kindergartens and nursery schools nationwide since 1969.
The joint venture with China FAW Group manufactures models such as the Corolla, RAV4, bZ4X and bZ3 and the joint venture with Guangzhou Automobile Group Co., Ltd. manufactures models such as the Camry, Levin, Highlander and bZ4X.
The joint venture with China FAW Group manufactures models such as the Avalon, Corolla, RAV4 and bZ3 and the joint venture with Guangzhou Automobile Group Co., Ltd. manufactures models such as the Camry, Levin, Highlander and bZ4X.
Product-centered Management Toyota Mobility Concept is centered on enhancing the value of the car, expanding new mobility and freedom of movement, and providing new services and energy solutions as part of social systems. The three approaches that hold the key to realizing this vision are electrification, intelligence, and diversification. Electrification will be based on a multi-pathway approach.
Product-centered Management Toyota Mobility Concept is centered on enhancing the value of cars, expanding new mobility and freedom of movement, and providing new services and energy solutions as part of social systems. The three approaches that hold the key to realizing this vision are electrification, intelligence, and diversification. Electrification will be based on a multi-pathway approach.
Set forth below is information with respect to Toyota’s material plans to construct, expand or improve its facilities between April 2024 and March 2025, presented on a “by subsidiary” basis and as reported in Toyota’s annual Japanese securities report filed with the director of the Kanto Local Finance Bureau.
Set forth below is information with respect to Toyota’s material plans to construct, expand or improve its facilities between April 2025 and March 2026, presented on a “by subsidiary” basis and as reported in Toyota’s annual Japanese securities report filed with the director of the Kanto Local Finance Bureau.
The following table sets forth information, as of March 31, 2024, with respect to Toyota’s principal facilities and organizations, all of which are owned by Toyota Motor Corporation or its subsidiaries. However, small portions, all under approximately 20%, of some facilities are on leased premises.
The following table sets forth information, as of March 31, 2025, with respect to Toyota’s principal facilities and organizations, all of which are owned by Toyota Motor Corporation or its subsidiaries. However, small portions, all under approximately 20%, of some facilities are on leased premises.
To this end, Toyota is focusing on the following areas: • further improvements in hybrid technologies, including in functions and cost, and contributions to the environment through advancements; • improvement in internal combustion engine fuel economy technology as well as improvement in technology in connection with more stringent emission standards; 63 Table of Contents • development of BEVs, FCEVs and other alternative fuel vehicles; • development of advanced safety technology designed to promote driving and vehicle safety; • development of automated driving technologies; • connected car technologies; and • development of technology to bring about more comfortable movement.
To this end, Toyota is focusing on the following areas: • further improvements in hybrid technologies, including in functions and cost, and contributions to the environment through advancements; • improvement in internal combustion engine fuel economy technology as well as improvement in technology in connection with more stringent emission standards; • development of BEVs, FCEVs and other alternative fuel vehicles; • development of advanced safety technology designed to promote driving and vehicle safety; • development of automated driving technologies; • connected car technologies; and • development of technology to bring about more comfortable movement.
Suzuki Motor Corporation (“Suzuki”) and Daihatsu joined the partnership in July 2021 (In October 2023, CJPT reinstated Hino Motors Ltd. as a partner.). Distribution by truck accounts for the majority of overland logistics in Japan, and the transportation sector (including buses and taxis) involves a number of people.
Suzuki Motor Corporation (“Suzuki”) and Daihatsu joined the partnership in July 2021 (In October 2023, CJPT reinstated Hino as a partner.). Distribution by truck accounts for the majority of overland logistics in Japan, and the transportation sector (including buses and taxis) involves a number of people.
Supporting this is our competitiveness in such areas as per-unit development cost and investment in in-house production, both of which have been halved by the Toyota New Global Architecture (“TNGA”) as compared to those before the adoption of TNGA. We will provide the team with comprehensive support through the power of our 10-million-unit-strong sales and revenue base.
Supporting these efforts is our competitiveness in such areas as per-unit development cost and investment in in-house production, both of which have been halved by the Toyota New Global Architecture (“TNGA”) as compared to those before the adoption of TNGA. We will provide the team with comprehensive support through the power of our 10-million-unit-strong sales and revenue base.
Information on the Company — 4.B Business Overview — Selected Initiatives” for further discussion of these and related matters. 67 Table of Contents Toyota also has various other pending legal actions and claims, including without limitation personal injury and wrongful death lawsuits and claims in the United States, as well as intellectual property litigation, and is subject to government investigations from time to time.
Information on the Company — 4.B Business Overview — Selected Initiatives” for further discussion of these and related matters. Toyota also has various other pending legal actions and claims, including without limitation personal injury and wrongful death lawsuits and claims in the United States, as well as intellectual property litigation, and is subject to government investigations from time to time.
This will be updated to reflect the changing times. Regarding the out-car experience, we will increase the value we offer via cross-industry collaboration with partners in housing, energy, logistics and other sectors serving as essential components of social systems. 33 Table of Contents One of Toyota’s competitive advantages lies in its extensive global dealer network.
This will be updated to reflect the changing times. Regarding the out-car experience, we will increase the value we offer via cross-industry collaboration with partners in housing, energy, logistics and other sectors serving as essential components of social systems. One of Toyota’s competitive advantages lies in its extensive global dealer network.
Toyota has expanded its network of financial services, in accordance with its strategy of developing auto-related financing businesses in significant markets. Accordingly, Toyota currently operates financial services companies in 43 countries and regions, which support its automotive operations globally.
Toyota has expanded its network of financial services, in accordance with its strategy of developing auto-related financing businesses in significant markets. Accordingly, Toyota currently operates financial services companies in 42 countries and regions, which support its automotive operations globally.
In an era which it is hard to predict the future, Toyota has reflected on the path it has taken thus far and has formulated the “Toyota Philosophy” as a roadmap for the future. 9 Table of Contents Toyota’s mission is “Producing Happiness for All” by expanding the possibilities of people, companies and communities through addressing the challenges of mobility as a mobility company.
In an era which it is hard to predict the future, Toyota has reflected on the path it has taken thus far and has formulated the “Toyota Philosophy” as a roadmap for the future. Toyota’s mission is “Producing Happiness for All” by expanding the possibilities of people, companies and communities through addressing the challenges of mobility as a mobility company.
We also aim to achieve carbon neutrality at all of our global plants by 2035. Also, we will overhaul existing supply chains by working with suppliers to procure superior quality parts at lower prices. To realize these transformations, we created a new specialized unit in May 2023 to develop BEVs.
We also aim to achieve carbon neutrality at all of our global plants by 2035. At the same time, we will overhaul existing supply chains by working with suppliers to procure superior quality parts at lower prices. To realize these transformations, we created a new specialized unit in May 2023 to develop BEVs.
The tradeoff, meanwhile, is thought to be a shorter battery life. Solid electrolytes repeatedly expand and contract as the battery charges and discharges, which can create cracks in the solid-state battery that inhibit the 30 Table of Contents movement of ions between the cathode and anode. Toyota has discovered a new technology that overcomes this issue.
The tradeoff, meanwhile, is thought to be a shorter battery life. Solid electrolytes repeatedly expand and contract as the battery charges and discharges, which can create cracks in the solid-state battery that inhibit the movement of ions between the cathode and anode. Toyota has discovered a new technology that overcomes this issue.
The Mobility Teammate Concept is an automated driving concept unique to Toyota that seeks to enhance communication between drivers and their cars, enabling them to assist one another in coordinated driving as companions.
The Mobility Teammate Concept is an automated driving concept unique to Toyota that is designed to enhance communication between drivers and their cars, enabling them to assist one another in coordinated driving as companions.
On March 4, 2022, Hino Motors, Ltd., a publicly traded Japanese company that produces and sells commercial trucks and buses, and of which Toyota owns 50.19% of the voting interests as of March 31, 2024, disclosed that it had voluntarily commenced an investigation into potential issues regarding emissions performance and certification in the North American and Japanese markets, and that it has reported such issues to and is cooperating with the relevant authorities.
On March 4, 2022, Hino Motors, Ltd., a publicly traded Japanese company that produces and sells commercial trucks and buses, and of which Toyota owns 50.18% of the voting interests as of March 31, 2025, disclosed that it had voluntarily commenced an investigation into potential issues regarding emissions performance and certification in the North American and Japanese markets, and that it has reported such issues to and is cooperating with the relevant authorities.
Furthermore, we have appointed a Chief Sustainability Officer to lead the engagement with external stakeholders and dissemination of information regarding sustainability activities. 49 Table of Contents Risk Management Toyota will further strengthen risk management in response to uncertainties amid our constantly needing to rise to new challenges in the era of major changes in the circumstances surrounding, and in the values of, the automobile industry, such as carbon neutrality, CASE and other factors.
Furthermore, we have appointed a Chief Sustainability Officer to lead the engagement with external stakeholders and dissemination of information regarding sustainability activities. 57 Risk Management Toyota will further strengthen risk management in response to uncertainties amid our constantly needing to rise to new challenges in the era of major changes in the circumstances surrounding, and in the values of, the automobile industry, such as carbon neutrality, CASE and other factors.
For a detailed discussion of the company’s research and development infrastructure, see “Item 5. Operating and Financial Review and Prospects — 5.C Research and Development, Patents and Licenses.” Components and Parts, Raw Materials and Sources of Supply Toyota purchases parts, components, raw materials, equipment and other supplies from multiple competing suppliers located around the world.
For a detailed discussion of our research and development infrastructure, see “Item 5. Operating and Financial Review and Prospects — 5.C Research and Development, Patents and Licenses.” 75 Components and Parts, Raw Materials and Sources of Supply Toyota purchases parts, components, raw materials, equipment and other supplies from multiple competing suppliers located around the world.
In short, the underlying concept of our multi-pathway strategy is to focus on promoting practical transition even as we pursue carbon neutrality. 27 Table of Contents BEV Strategies On December 14, 2021, Toyota held a briefing on its BEV strategy where it announced that it would be boosting its annual BEV sales baseline in 2030 from 2 million to 3.5 million units.
In short, the underlying concept of our multi-pathway strategy is to focus on promoting practical transition even as we pursue carbon neutrality. 32 BEV Strategies On December 14, 2021, Toyota held a briefing on its BEV strategy where it announced that it would be boosting its annual BEV sales baseline in 2030 from 2 million to 3.5 million units.
As the progress of the international harmonization of technical prescriptions will lead to the reduction of the variations in product specifications from country to country, it is expected to lead to greater efficiency in Toyota’s product development. 40 Table of Contents Japan was elected as vice chair of WP.29 in November 2022 to lead discussions of international harmonization of vehicle regulations.
As the progress of the international harmonization of technical prescriptions will lead to the reduction of the variations in product specifications from country to country, it is expected to lead to greater efficiency in Toyota’s product development. Japan was elected as vice chair of WP.29 in November 2022 to lead discussions of international harmonization of vehicle regulations.
The EPA proposed to make no changes to the secondary (welfare-based) annual PM 2.5 standard, primary and secondary 24-hour PM 2.5 standards, and primary and secondary PM 10 standards. In March 2024, the EPA announced a final rule, effective May 2024, lowering the primary (health-based) annual particulate matter (PM 2.5 ) standard to 9.0 µg/m 3 .
The EPA proposed to make no changes to the secondary (welfare-based) annual PM 2.5 standard, primary and secondary 24-hour PM 2.5 standards, and primary and secondary PM 10 standards. In March 2024, the EPA announced a final rule, effective May 2024, lowering the primary (health-based) annual particulate matter (PM 2.5 ) standard to 9.0 µg/m3.
Toyota strives to ensure that its operations comply with environmental regulatory requirements concerning its facilities and products in each of the markets in which it operates. Toyota continuously monitors these 48 Table of Contents requirements and takes necessary operational measures in an effort to remain in material compliance with all of these requirements.
Toyota strives to ensure that its operations comply with environmental regulatory requirements concerning its facilities and products in each of the markets in which it operates. Toyota continuously monitors these requirements and takes necessary operational measures in an effort to remain in material compliance with all of these requirements.
Capital Expenditures and Divestitures Set forth below is a chart of Toyota’s principal capital expenditures between April 1, 2021 and March 31, 2024, the approximate total costs of such activity, as well as the location and method of financing of such activity, presented on a “by subsidiary” basis and as reported in Toyota’s annual Japanese securities report filed with the director of the Kanto Local Finance Bureau.
Capital Expenditures and Divestitures Set forth below is a chart of Toyota’s principal capital expenditures between April 1, 2022 and March 31, 2025, the approximate total costs of such activity, as well as the location and method of financing of such activity, presented on a “by subsidiary” basis and as reported in Toyota’s annual Japanese securities report filed with the director of the Kanto Local Finance Bureau.
As of March 31, 2024, property, plant and equipment having a net book value of approximately ¥1,574.3 billion was pledged as collateral securing indebtedness incurred by Toyota Motor Corporation’s consolidated subsidiaries. Toyota believes that there does not exist any material environmental issues that may affect the company’s utilization of its assets.
As of March 31, 2025, property, plant and equipment having a net book value of approximately ¥1,616.3 billion was pledged as collateral securing indebtedness incurred by Toyota Motor Corporation’s consolidated subsidiaries. Toyota believes that there does not exist any material environmental issues that may affect the company’s utilization of its assets.
The United States In 2025, Toyota plans to start the local production of a 3-row SUV equipped with batteries to be produced in North Carolina.
The United States In 2026, Toyota plans to start the local production of a 3-row SUV equipped with batteries to be produced in North Carolina.
Toyota held a domestic market 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 Toyota’s principle is to conduct production in regions where it enjoys true competitiveness, it considers Japan to be the source of its good manufacturing practices.
Toyota held a domestic market share (excluding mini-vehicles) on a retail basis of 51.1% in fiscal 2023, 51.8% in fiscal 2024 and 50.4% in fiscal 2025. Although Toyota’s principle is to conduct production in regions where it enjoys true competitiveness, it considers Japan to be the source of its good manufacturing practices.
Because Toyota had more than 50 overseas operations in 26 countries and regions as of March 31, 2024, procurement of parts and components is being carried out not only locally in the country of the production site but also from third countries. As a result, the distribution network has become increasingly complex.
Because Toyota had more than 50 overseas operations in 27 countries and regions as of March 31, 2025, procurement of parts and components is being carried out not only locally in the country of the production site but also from third countries. As a result, the distribution network has become increasingly complex.
On January 6, 2023, the EPA announced a proposed decision to revise primary (health-based) annual particulate matter (PM 2.5 ) standard from 12.0 µg/m 3 to within the range of 9.0 to 10.0 µg/m 3 .
On January 6, 2023, the EPA announced a proposed decision to revise primary (health-based) annual particulate matter (PM 2.5 ) standard from 12.0 µg/m3 to within the range of 9.0 to 10.0 µg/m3.
In addition, Toyota introduced the Lexus brand to the Japanese market in August 2005, and currently distributes the Lexus brand vehicles through a network of 187 new-vehicle sales outlets dedicated to the Lexus brand in order to enhance its competitiveness in the domestic luxury automotive market. The following table provides information on the dealer network as of March 31, 2024.
In addition, Toyota introduced the Lexus brand to the Japanese market in August 2005, and currently distributes the Lexus brand vehicles through a network of 190 new-vehicle sales outlets dedicated to the Lexus brand in order to enhance its competitiveness in the domestic luxury automotive market. The following table provides information on the dealer network as of March 31, 2025.
Under these laws, if a business entity establishes or alters any facility that is regulated by these laws, the business entity is required to give prior notice to regulators, and if a business entity discharges, uses or stores substances that are environmental burdens or causes noise or vibration from such facility, the business entity is 47 Table of Contents also required to comply with the applicable standards.
Under these laws, if a business entity establishes or alters any facility that is regulated by these laws, the business entity is required to give prior notice to regulators, and if a business entity discharges, uses or stores substances that are environmental burdens or causes noise or vibration from such facility, the business entity is also required to comply with the applicable standards.
Toyota is developing innovative next-generation fuel cells that is expected to deliver industry-leading performance for commercial use (long life, low cost, and low fuel consumption). 31 Table of Contents These next-generation cells, which we aim to commercialize in 2026, are expected to improve generating capacity by 30% compared with current fuel cells.
Toyota is developing innovative next- generation fuel cells that is expected to deliver industry-leading performance for commercial use (long life, low cost, and low fuel consumption). These next-generation cells, which we aim to commercialize in 2026, are expected to improve generating capacity by 30% compared with current fuel cells.
Hino has also further agreed to compensate certain of its customers in Japan for certain additional motor vehicle taxes that have become payable on account of the misconduct, as well as in connection with vehicles with engines with respect to which there were fuel efficiency problems. With respect to the United States, the U.S.
Hino has also further agreed to compensate certain of its customers in Japan for certain additional motor vehicle taxes that have become payable on account of the misconduct, as well as in connection with vehicles with engines with respect to which there were fuel efficiency problems.
We will accelerate the taking on of challenges for the future, with a new management style of “simultaneously and organically working as a team.” 10 Table of Contents Aiming for the Future We aim to transform into a mobility company.
We will accelerate the taking on of challenges for the future, with a new management style of “simultaneously and organically working as a team.” Aiming for the Future We aim to transform into a mobility company.
The third is competitiveness and technology. We are working on “innovative evolution of competitive next-generation fuel cell technologies,” such as next-generation cell technologies and fuel cell systems. We will work toward full-scale commercialization as we move forward with these initiatives. We expect that our next-generation system will achieve significant FCEV production cost reduction through technological progress, volume efficiency, and localization.
We are working on “innovative evolution of competitive next-generation fuel cell technologies,” such as next-generation cell technologies and fuel cell systems. We will work toward full-scale commercialization as we move forward with these initiatives. We expect that our next-generation system will achieve significant FCEV production cost reduction through technological progress, volume efficiency, and localization.
We are also considering installing these batteries in BEVs in the popularization price range. 29 Table of Contents In a regular battery, individual current collectors are coated on both sides with either an anode or cathode, then paired to make a set.
We are also considering installing these batteries in BEVs in the popularization price range. In a regular battery, individual current collectors are coated on both sides with either an anode or cathode, then paired to make a set.
TOYOTA Mobility Tokyo Inc. is the only dealer owned by Toyota and the rest are independent. 26 Table of Contents Toyota believes that this extensive sales network of independent local interests has been an important factor in its success in the Japanese market.
TOYOTA Mobility Tokyo Inc. is the only dealer owned by Toyota and the rest are independent. 31 Toyota believes that this extensive sales network of independent local interests has been an important factor in its success in the Japanese market.
Therefore, for all of the aforementioned matters, which Toyota is in discussions to resolve, any losses that are beyond the amounts accrued could have an adverse effect on Toyota’s financial position, results of operations or cash flows. 4.C ORGANIZATIONAL STRUCTURE As of March 31, 2024, Toyota Motor Corporation had 206 Japanese subsidiaries and 371 overseas subsidiaries.
Therefore, for all of the aforementioned matters, which Toyota is in discussions to resolve, any losses that are beyond the amounts accrued could have an adverse effect on Toyota’s financial position, results of operations or cash flows. 4.C ORGANIZATIONAL STRUCTURE As of March 31, 2025, Toyota Motor Corporation had 209 Japanese subsidiaries and 376 overseas subsidiaries.
Working under a single leader entrusted with full authority, this all-in-one team will handle every function, from development to production and business operation.
Working under a single leader entrusted with full authority, this all-in-one team handles every function, from development to production and business operation.
A total of 580 vehicles will be used, including heavy and light-duty fuel cell electric trucks, and light-duty BEV trucks and mini-commercial vans, to comprehensively cover transportation from trunk lines to the last mile. As of the end of October 2023, over 50 electrified vehicles have hit the roads.
A total of 580 vehicles will be used, including heavy and light-duty fuel cell electric trucks, and light-duty BEV trucks and mini-commercial vans, to comprehensively cover transportation from trunk lines to the last mile. As of the end of October 2024, 220 electrified vehicles have hit the roads.
Toyota’s North American production capacities include the production of vehicle models such as the RAV4, Camry, Tacoma and Highlander through 13 manufacturing entities. In November 2021, Toyota created Toyota Battery Manufacturing, North Carolina (“TBMNC”) as the first plant to produce automotive batteries for Toyota in North America.
Toyota’s North American production capacities include the production of vehicle models such as the RAV4, Camry, Tacoma and Highlander through 13 manufacturing entities. In November 2021, Toyota created Toyota Battery Manufacturing, North Carolina (“TBMNC”) as the first plant to produce automotive batteries for Toyota in North America. TBMNC started operations in February 2025.
In addition, Toyota is actively promoting production and sales measures that meet local demand by strengthening its value chain including used car dealerships, after-sales services and finance and insurance services. 24 Table of Contents Asia Toyota’s principal Asian markets are Thailand, India, Indonesia and Taiwan.
In addition, Toyota is actively promoting production and sales measures that meet local demand by strengthening its value chain including used car dealerships, after-sales services and finance and insurance services. 29 Asia Toyota’s principal Asian markets are Thailand, India, Indonesia and Taiwan.
This revised General Safety Regulation (which came into effect in July 2022) makes certain vehicle safety equipment mandatory in stages, including: automated emergency braking, emergency lane keeping systems, driver drowsiness and attention warning, intelligent speed assistance, reversing detection systems, tire pressure monitoring systems, and data recorders in case of an accident (“event data recorders”).
This revised General Safety Regulation (which came into effect in July 2022) made certain vehicle safety equipment mandatory in a phased approach, including: automated emergency braking, emergency lane keeping systems, driver drowsiness and attention warning, intelligent speed assistance, reversing detection systems, tire pressure monitoring systems, and data recorders in case of an accident (“event data recorders”).
Toyota considers all its principal manufacturing facilities and other significant properties to be in good condition and adequate to meet the needs of its operations. See “Item 4. Information on the Company — 4.B Business Overview — Capital Expenditures and Divestitures” for a description of Toyota’s material plans to construct, expand or improve facilities.
Toyota considers all its principal manufacturing facilities and other significant properties to be in good condition and adequate to meet the needs of its operations. See “Item 4. Information on the Company — 4.B Business Overview — Capital Expenditures and Divestitures” for a description of Toyota’s material plans to construct, expand or improve facilities. ITEM 4A. UNRESOLVED STAFF COMMENTS None.
Description of Activity Total Cost (Yen in billions) Location Primary Method of Financing Japan Investment primarily in technology and products by Toyota Motor Corporation 1,334.6 Japan Internal funds, financing from issuance of bonds, etc.
Description of Activity Total Cost (Yen in billions) Location Primary Method of Financing Japan Investment primarily in technology and products by Toyota Motor Corporation 1,612.9 Japan Internal funds, financing from issuance of bonds, etc.
Commercial vehicles account for a significant proportion of the total distance traveled by automobiles and of all CO 2 emissions from automobiles in Japan. Furthermore, more than 60,000 logistics companies operating in Japan currently face numerous management issues, such as high-frequency distribution, harsh work environments, labor shortages, and rising operating costs.
Commercial vehicles account for a significant proportion of the total distance traveled by automobiles and about half of all CO 2 emissions from automobiles in Japan. Furthermore, numerous logistics companies operating in Japan currently face numerous management issues, such as high-frequency distribution, harsh work environments, labor shortages, and rising operating costs.
Indiana, U.S.A. 4,359 6,392 Automobiles Toyota is constantly engaged in upgrading, modernizing and revamping the operations of its manufacturing facilities based on its assessment of market needs and prospects.
Indiana, U.S.A. 4,359 7,410 Automobiles Toyota is constantly engaged in upgrading, modernizing and revamping the operations of its manufacturing facilities based on its assessment of market needs and prospects.
We will continue to tailor electrification to the needs 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 created by carmakers.
We will continue to tailor electrification to the needs of customers and individual regions by drawing on the strengths and characteristics of each vehicle type. We have plans to release next-generation BEVs entirely different from those of today—BEVs created by automobile manufacturers.
The proposal strengthens the 2030 targets from 37.5% to a 55% reduction for new passenger cars and from 31% to a 50% reduction for new light commercial vehicles, both relative to the 2021 baseline discussed above.
The new standards strengthen the 2030 targets from 37.5% to a 55% reduction for new passenger cars and from 31% to a 50% reduction for new light commercial vehicles, both relative to the 2021 baseline discussed above.
On October 7, 2022, Hino submitted a recurrence prevention report to MLIT. MLIT has also revoked certain of the “type approvals” (that is, approvals that exempt new vehicles or vehicles with certain equipment from individual testing by government inspectors prior to sale) and the fuel consumption ratings relating to certain engine models.
From October 7, 2022 to May 22, 2024, Hino submitted recurrence prevention reports to the MLIT. The MLIT has also revoked certain of the “type approvals” (that is, approvals that exempt new vehicles or vehicles with certain equipment from individual testing by government inspectors prior to sale) and the fuel consumption ratings relating to certain engine models.
Toyota Motor Credit Corporation provides a wide range of financial services, including retail financing, retail leasing, wholesale financing and insurance. Toyota Finance Corporation also provides a range of financial services, including retail financing, retail leasing and credit cards.
Toyota Motor Credit Corporation provides a wide range of financial services, including retail financing, retail leasing, wholesale financing and insurance. Toyota Finance Corporation also provides a range of financial services, including retail financing, retail leasing and credit cards. Toyota’s other finance subsidiaries provide services including retail financing, retail leasing and wholesale financing.
In these regions, which are expected to become increasingly important to Toyota’s business strategy, Toyota aims to continue developing new products which meet the specific demands of each region, increasing production and promoting sales. 25 Table of Contents Production Toyota and its affiliated companies produce automobiles and related components through more than 50 overseas manufacturing organizations in 26 countries and regions aside from Japan.
In these regions, which are expected to become increasingly important to Toyota’s business strategy, Toyota aims to continue developing new products which meet the specific demands of each region, increasing production and promoting sales. 30 Production As of March 31, 2025, Toyota and its affiliated companies produce automobiles and related components through more than 50 overseas manufacturing organizations in 27 countries and regions aside from Japan.
The Advanced Drive on-board system will appropriately detect the vehicle’s surroundings, make decisions, and assist driving under the driver’s supervision according to actual traffic conditions. It can keep the vehicle in its lane, maintain the distance from other vehicles, navigate a lane split, change lanes, and overtake other vehicles until leaving the roadway for the destination.
The Advanced Drive on-board system will accurately recognize the vehicle’s surroundings, make decisions, and assist driving under the driver’s supervision according to actual traffic conditions. This system can keep the vehicle in its lane, maintain the appropriate distance from other vehicles, navigate a lane split, change lanes, and overtake other vehicles until leaving the motor-vehicle-only roadway for the driver’s destination.
In addition, by drawing on the strengths of TPS, we will change the way we work to reduce the number of processes for the BEV production line by half. This will entail a shift to more efficient lines, including autonomous inspections and unmanned transport powered by connected technology.
In addition, by drawing on the strengths of TPS, we will change the way we work to reduce the number of processes for the BEV production line by half. This will entail a shift to more efficient lines, including autonomous inspections and unmanned transport powered by connected technology, which is expected to significantly transform the landscape of our production plants.
During fiscal 2024, 21.1% of Toyota’s 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 consolidated unit sales were in other markets. The Worldwide Automotive Market Toyota estimates that annual worldwide vehicle sales totaled approximately 89 million units in 2023.
During fiscal 2025, 21.3% of Toyota’s automobile unit sales on a consolidated basis were in Japan, 28.9% were in North America, 12.5% were in Europe and 19.6% were in Asia. The remaining 17.7% of consolidated unit sales were in other markets. The Worldwide Automotive Market Toyota estimates that annual worldwide vehicle sales totaled approximately 89 million units in 2024.
Toyota’s finance subsidiaries acquire security interests in the vehicles financed and can generally repossess vehicles if customers fail to meet their contractual obligations. Almost all retail financings are non-recourse, which relieves the dealers from financial responsibility in the event of repossession.
Thereafter, the finance company retains responsibility for installment payment collections and administration. Toyota’s finance subsidiaries acquire security interests in the vehicles financed and can generally repossess vehicles if customers fail to meet their contractual obligations. Almost all retail financings are non-recourse, which relieves the dealers from financial responsibility in the event of repossession.
In 2021, the fuel economy test mode was changed from NEDC to WLTC, and the Level 5 Fuel Consumption Regulations for passenger vehicles to achieve the average fuel efficiency target by 2025, GB19578-2021 and GB27999-2019, has been in effect since 2021. Currently, Level 6 Fuel Consumption Regulations for passenger vehicles are being considered as more stringent fuel consumption regulations.
In 2021, the fuel economy test mode was changed from NEDC to WLTC, and the Level 5 Fuel Consumption Regulations for passenger vehicles to achieve the average fuel efficiency target by 2025, GB19578-2021 and GB27999-2019, has been in effect since 2021.

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Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeThe following is a description of operating income in each geographic market. 89 Table of Contents Japan Yen in millions 2023 v. 2022 Change Changes in operating income and loss: Effect of marketing efforts 365,000 Effect of cost reduction efforts (690,000 ) Effect of changes in exchange rates 1,210,000 Increase or decrease in expenses and expense reduction efforts (320,000 ) Other (86,982 ) Total 478,018 North America Yen in millions 2023 v. 2022 Change Changes in operating income and loss: Effect of marketing efforts 90,000 Effect of cost reduction efforts (395,000 ) Effect of changes in exchange rates (15,000 ) Increase or decrease in expenses and expense reduction efforts (135,000 ) Other (185,520 ) Total (640,520 ) Europe Yen in millions 2023 v. 2022 Change Changes in operating income and loss: Effect of marketing efforts 130,000 Effect of cost reduction efforts (120,000 ) Effect of changes in exchange rates (15,000 ) Increase or decrease in expenses and expense reduction efforts (25,000 ) Other (75,513 ) Total (105,513 ) Asia Yen in millions 2023 v. 2022 Change Changes in operating income and loss: Effect of marketing efforts 75,000 Effect of cost reduction efforts (25,000 ) Effect of changes in exchange rates 90,000 Increase or decrease in expenses and expense reduction efforts (45,000 ) Other (52,899 ) Total 42,101 90 Table of Contents Other Yen in millions 2023 v. 2022 Change Changes in operating income and loss: Effect of marketing efforts 60,000 Effect of cost reduction efforts (60,000 ) Effect of changes in exchange rates 10,000 Increase or decrease in expenses and expense reduction efforts 0 Other (16,807 ) Total (6,807 ) Other Income and Expenses Share of profit (loss) of investments accounted for using the equity method during fiscal 2023 increased by ¥82.7 billion, or 14.8%, to ¥643.0 billion compared with the prior fiscal year.
Biggest changeJapan Yen in millions 2025 v. 2024 Change Changes in operating income and loss: Effect of marketing efforts 55,000 Effect of cost reduction efforts (160,000 ) Effect of changes in exchange rates 645,000 Increase or decrease in expenses and expense reduction efforts (525,000 ) Other (348,147 ) Total (333,147 ) North America Yen in millions 2025 v. 2024 Change Changes in operating income and loss: Effect of marketing efforts 5,000 Effect of cost reduction efforts 125,000 Effect of changes in exchange rates (55,000 ) Increase or decrease in expenses and expense reduction efforts (430,000 ) Other (42,512 ) Total (397,512 ) Europe Yen in millions 2025 v. 2024 Change Changes in operating income and loss: Effect of marketing activities (55,000 ) Effect of cost reduction efforts 60,000 Effect of changes in exchange rates 10,000 Increase or decrease in expenses and expense reduction efforts (5,000 ) Other 17,457 Total 27,457 Asia Yen in millions 2025 v. 2024 Change Changes in operating income and loss: Effect of marketing activities (15,000 ) Effect of cost reduction efforts 10,000 Effect of changes in exchange rates 15,000 Increase or decrease in expenses and expense reduction efforts 10,000 Other 10,919 Total 30,919 93 Other Yen in millions 2025 v. 2024 Change Changes in operating income and loss: Effect of marketing efforts 80,000 Effect of cost reduction efforts (35,000 ) Effect of changes in exchange rates (25,000 ) Increase or decrease in expenses and expense reduction efforts (25,000 ) Other 59,281 Total 54,281 Other Income and Expenses Share of profit (loss) of investments accounted for using the equity method during fiscal 2025 decreased by ¥171.9 billion, or 22.5%, to ¥591.2 billion compared with the prior fiscal year.
Foreign exchange gains and losses include the differences between the value of foreign currency denominated assets and liabilities recognized through transactions in foreign currencies translated at prevailing exchange rates and the value at the date the transaction settled during the fiscal year, including those settled using forward foreign currency exchange contracts, or the value translated by appropriate year-end exchange rates.
Foreign exchange gains and losses include the differences between the value of foreign currency denominated assets and liabilities recognized through transactions in foreign currencies translated at prevailing exchange rates and the value at the date the transaction settled during the fiscal year, including those settled using forward foreign currency exchange contracts, or the value translated by appropriate year-end exchange rates.
Segment Information The following is a discussion of the results of operations for each of Toyota’s operating segments. The amounts presented are prior to intersegment elimination.
Segment Information The following is a discussion of the results of operations for each of Toyota’s operating segments. The amounts presented are prior to intersegment elimination.
These factors include: • vehicle unit sales volumes, • the mix of vehicle models and options sold, • the level of parts and service sales, • the levels of price discounts and other sales incentives and marketing costs, • the cost of customer warranty claims and other customer satisfaction actions, • the cost of research and development and other fixed costs, • the prices of raw materials, • the ability to control costs, • the efficient use of production capacity, • the adverse effect on production due to such factors as the reliance on various suppliers for the provision of supplies, or the general scarcity of certain supplies, • climate change risk, including both physical risks as well as transition risks, • the adverse effect on market, sales and productions of natural calamities as well as the outbreak and spread of epidemics and interruptions of social infrastructure, and • changes in the value of the Japanese yen and other currencies in which Toyota conducts business.
These factors include: • vehicle unit sales volumes, • the mix of vehicle models and options sold, 83 • the level of parts and service sales, • the levels of price discounts and other sales incentives and marketing costs, • the cost of customer warranty claims and other customer satisfaction actions, • the cost of research and development and other fixed costs, • the prices of raw materials, • the ability to control costs, • the efficient use of production capacity, • the adverse effect on production due to such factors as the reliance on various suppliers for the provision of supplies, or the general scarcity of certain supplies, • climate change risk, including both physical risks as well as transition risks, • the adverse effect on market, sales and productions of natural calamities as well as the outbreak and spread of epidemics and interruptions of social infrastructure, and • changes in the value of the Japanese yen and other currencies in which Toyota conducts business.
This increase was due mainly to an increase during fiscal 2024 in net income of consolidated subsidiaries. Net Income Attributable to Toyota Motor Corporation Net income attributable to Toyota Motor Corporation increased by ¥2,493.6 billion, or 101.7%, to ¥4,944.9 billion during fiscal 2024 compared with the prior fiscal year.
This increase was due mainly to an increase during fiscal 2024 in net income of consolidated subsidiaries. 103 Net Income Attributable to Toyota Motor Corporation Net income attributable to Toyota Motor Corporation increased by ¥2,493.6 billion, or 101.7%, to ¥4,944.9 billion during fiscal 2024 compared with the prior fiscal year.
Translation risk is the risk that Toyota’s consolidated financial statements for a particular period or for a particular date will be affected by changes in the prevailing exchange rates of the currencies in those countries in which Toyota does business compared with the Japanese yen.
Translation risk is the risk that Toyota’s consolidated financial statements for a particular period or for a particular date will be affected by changes in the prevailing exchange rates of the currencies in those countries in 85 which Toyota does business compared with the Japanese yen.
The cost reduction efforts described above related to ongoing value engineering and value analysis activities, the use of common parts resulting in a reduction of part types and other manufacturing initiatives designed to reduce the costs of vehicle production.
The cost reduction efforts described above related to ongoing value engineering and value analysis activities, the use of common parts resulting in a reduction of part types and other manufacturing initiatives 91 designed to reduce the costs of vehicle production.
The cost reduction efforts described above related to ongoing value engineering and value analysis activities, the use of common parts resulting in a reduction of part types and other manufacturing initiatives designed to reduce the costs of vehicle production.
The cost reduction efforts described above related to ongoing value engineering and value analysis activities, the use of common parts resulting in a reduction of part types and other manufacturing initiatives 100 designed to reduce the costs of vehicle production.
Moreover, to bolster overseas research and development initiatives related to automated driving technology and software platforms, Toyota established Woven Planet North America (WPNA) in the United States and Woven Planet United Kingdom in the United Kingdom, and transferred TRI’s automated driving division to WPNA in May 2022.
Moreover, to bolster overseas research and development initiatives related to automated driving technology 110 and software platforms, Toyota established Woven Planet North America (WPNA) in the United States and Woven Planet United Kingdom in the United Kingdom, and transferred TRI’s automated driving division to WPNA in May 2022.
Yen in millions Year ended March 31, 2024 v. 2023 Change 2023 2024 Amount Percentage Automotive: Sales revenues 33,820,000 41,266,204 7,446,204 22.0 % Operating income 2,180,637 4,621,475 2,440,838 111.9 Financial Services: Sales revenues 2,809,647 3,484,198 674,551 24.0 Operating income 437,516 570,023 132,507 30.3 All Other: Sales revenues 1,224,943 1,368,164 143,221 11.7 Operating income 103,451 175,241 71,789 69.4 Intersegment elimination/unallocated amount: Sales revenues (700,293 ) (1,023,242 ) (322,949 ) — Operating income 3,420 (13,805 ) (17,226 ) — Total Sales revenues 37,154,298 45,095,325 7,941,027 21.4 % Operating income 2,725,025 5,352,934 2,627,909 96.4 % 83 Table of Contents Automotive Operations Segment The automotive operations segment is Toyota’s largest operating segment by sales revenues.
Yen in millions Year ended March 31, 2024 v. 2023 Change 2023 2024 Amount Percentage Automotive: Sales revenues 33,820,000 41,266,204 7,446,204 22.0 % Operating income 2,180,637 4,621,475 2,440,838 111.9 Financial Services: Sales revenues 2,809,647 3,484,198 674,551 24.0 Operating income 437,516 570,023 132,507 30.3 All Other: Sales revenues 1,224,943 1,368,164 143,221 11.7 Operating income 103,451 175,241 71,789 69.4 Intersegment elimination/unallocated amount: Sales revenues (700,293 ) (1,023,242 ) (322,949 ) — Operating income 3,420 (13,805 ) (17,226 ) — Total Sales revenues 37,154,298 45,095,325 7,941,027 21.4 % Operating income 2,725,025 5,352,934 2,627,909 96.4 % Automotive Operations Segment The automotive operations segment is Toyota’s largest operating segment by sales revenues.
The increase in vehicle unit sales is attributable mainly to strong sales of such models as the RAV4 and Corolla supported by strong market conditions as compared to the prior year. 77 Table of Contents Europe Thousands of units Year ended March 31, 2024 v. 2023 Change 2023 2024 Amount Percentage Toyota’s consolidated vehicle unit sales 1,030 1,192 162 15.7 % Yen in millions Year ended March 31, 2024 v. 2023 Change 2023 2024 Amount Percentage Sales revenues: Sales of products 4,003,043 5,255,395 1,252,352 31.3 % Financial services 270,693 426,369 155,676 57.5 Total 4,273,735 5,681,764 1,408,028 32.9 % Sales revenues in Europe increased due primarily to the 162 thousand vehicles increase in vehicle unit sales, the favorable impact of changes in exchange rates compared with the prior fiscal year and price revisions.
The increase in vehicle unit sales is attributable mainly to strong sales of such models as the RAV4 and Corolla supported by strong market conditions as compared to the prior year. 98 Europe Thousands of units Year ended March 31, 2024 v. 2023 Change 2023 2024 Amount Percentage Toyota’s consolidated vehicle unit sales 1,030 1,192 162 15.7 % Yen in millions Year ended March 31, 2024 v. 2023 Change 2023 2024 Amount Percentage Sales revenues: Sales of products 4,003,043 5,255,395 1,252,352 31.3 % Financial services 270,693 426,369 155,676 57.5 Total 4,273,735 5,681,764 1,408,028 32.9 % Sales revenues in Europe increased due primarily to the 162 thousand vehicles increase in vehicle unit sales, the favorable impact of changes in exchange rates compared with the prior fiscal year and price revisions.
In January 2021, TRI-AD was reorganized into Woven Planet Group comprising four companies — Woven Planet Holdings, Inc., which is responsible for decision-making for the entire group and creates new business opportunities; Woven Core, Inc., which assumed the business of TRI-AD and is responsible for the development of automated driving technologies; Woven Alpha, Inc., which is responsible for the development of new projects such as Woven City 98 Table of Contents and Arene, a software platform; and Woven Capital, L.P. with a total investment value of $800 million, which invests in growth-stage companies in areas such as autonomous driving mobility, artificial intelligence, and smart city.
In January 2021, TRI-AD was reorganized into Woven Planet Group comprising four companies — Woven Planet Holdings, Inc., which is responsible for decision-making for the entire group and creates new business opportunities; Woven Core, Inc., which assumed the business of TRI-AD and is responsible for the development of automated driving technologies; Woven Alpha, Inc., which is responsible for the development of new projects such as Woven City and Arene, a software platform; and Woven Capital, L.P. with a total investment value of $800 million, which invests in growth-stage companies in areas such as autonomous driving mobility, artificial intelligence, and smart city.
Toyota uses its securitization program as part of its funding through special purpose entities for its financial services operations. Toyota is considered as the primary beneficiary of these special purpose entities and therefore consolidates them. Toyota has not entered into any off-balance sheet securitization transactions during fiscal 2024.
Toyota uses its securitization program as part of its funding through special purpose entities for its financial services operations. Toyota is considered as the primary beneficiary of these special purpose entities and therefore consolidates them. Toyota has not entered into any off-balance sheet securitization transactions during fiscal 2025.
These factors include general economic conditions, prevailing interest rates and Toyota’s financial strength. Funding costs increased during fiscal 2023 and 2024 mainly as a result of higher interest rates. Toyota launched its credit card business in Japan in April 2001.
These factors include general economic conditions, prevailing interest rates and Toyota’s financial strength. Funding costs increased during fiscal 2024 and 2025 mainly as a result of higher interest rates. Toyota launched its credit card business in Japan in April 2001.
The intellectual property that R&D generates is a vital management resource that Toyota utilizes and protects to maximize its corporate value. For a more detailed discussion of the company’s research and development objectives and policies, see “Item 4.
The intellectual property that R&D generates is a vital management resource that Toyota utilizes and protects to maximize its corporate value. For a more detailed discussion of our research and development objectives and policies, see “Item 4.
Toyota does not manage any subset of its automotive operations, such as domestic or overseas operations or parts, as separate management units. 74 Table of Contents Geographic Breakdown The following table sets forth Toyota’s sales revenues in each geographic market based on the country location of TMC or the subsidiaries that transacted the sale with the external customer for the past three fiscal years.
Toyota does not manage any subset of its automotive operations, such as domestic or overseas operations or parts, as separate management units. 86 Geographic Breakdown The following table sets forth Toyota’s sales revenues in each geographic market based on the country location of TMC or the subsidiaries that transacted the sale with the external customer for the past three fiscal years.
(R&I), as of May 31, 2024. A credit rating is not a recommendation to buy, sell or hold securities. A credit rating may be subject to withdrawal or revision at any time. Each rating should be evaluated separately of any other rating.
(R&I), as of May 31, 2025. A credit rating is not a recommendation to buy, sell or hold securities. A credit rating may be subject to withdrawal or revision at any time. Each rating should be evaluated separately of any other rating.
Information on the Company — 4.B Business Overview — Capital Expenditures and Divestitures” for information regarding Toyota’s material capital expenditures and divestitures for fiscal 2022, 2023 and 2024, and information concerning Toyota’s principal capital expenditures and divestitures currently in progress.
Information on the Company — 4.B Business Overview — Capital Expenditures and Divestitures” for information regarding Toyota’s material capital expenditures and divestitures for fiscal 2023, 2024 and 2025, and information concerning Toyota’s principal capital expenditures and divestitures currently in progress.
See the discussion in “Quantitative and Qualitative Disclosures about Market Risk” and notes 20 and 21 to the consolidated financial statements. The fluctuations in funding costs can affect the profitability of Toyota’s financial services operations. Funding costs are affected by a number of factors, some of which are not in Toyota’s control.
See the discussion in “Item11. Quantitative and Qualitative Disclosures about Market Risk” and notes 20 and 21 to the consolidated financial statements. The fluctuations in funding costs can affect the profitability of Toyota’s financial services operations. Funding costs are affected by a number of factors, some of which are not in Toyota’s control.
Excluding the impact of changes in exchange rates of ¥1,320.0 billion, sales revenues in fiscal 2024 would have increased by 18.0% in Japan, 21.2% in North America, 19.5% in Europe, 3.1% in Asia, and 55.3% in Other compared with the prior fiscal year. 76 Table of Contents The following is a discussion of sales revenues in each geographic market (before the elimination of intersegment revenues).
Excluding the impact of changes in exchange rates of ¥1,320.0 billion, sales revenues in fiscal 2024 would have increased by 18.0% in Japan, 21.2% in North America, 19.5% in Europe, 3.1% in Asia, and 55.3% in Other compared with the prior fiscal year. 97 The following is a discussion of sales revenues in each geographic market (before the elimination of intersegment revenues).
The increase resulted mainly from the ¥5,130.0 billion impact of increased vehicle unit sales and changes in sales mix and the ¥1,320.0 billion favorable impact of changes in exchange rates. 75 Table of Contents The table below shows Toyota’s sales revenues from external customers by product category and by business.
The increase resulted mainly from the ¥5,130.0 billion impact of increased vehicle unit sales and changes in sales mix and the ¥1,320.0 billion favorable impact of changes in exchange rates. 96 The table below shows Toyota’s sales revenues from external customers by product category and by business.
Financial Services Operations Competition in the worldwide automobile financial services industry is intensifying. As competition increases, margins on financing transactions may decrease and market share may also decline as customers obtain financing for Toyota vehicles from alternative sources. 72 Table of Contents Toyota’s financial services operations mainly include loans and leasing programs for customers and dealers.
Financial Services Operations Competition in the worldwide automobile financial services industry is intensifying. As competition increases, margins on financing transactions may decrease and market share may also decline as customers obtain financing for Toyota vehicles from alternative sources. Toyota’s financial services operations mainly include loans and leasing programs for customers and dealers.
Toyota funds its financing programs for customers and dealers, including loans and leasing programs, from cash generated by operations, the issuance of corporate bonds, and debt financing, all by its sales finance subsidiaries. Toyota seeks to expand its ability to raise funds locally in markets around the world through its network of finance subsidiaries.
Toyota funds its financing programs for customers and dealers, including loans and leasing programs, through cash generated by operations and debt financing, such as the issuance of corporate bonds and borrowing, all by its sales finance subsidiaries. Toyota seeks to expand its ability to raise funds locally in markets around the world through its network of finance subsidiaries.
In fiscal 2025, Toyota expects to sufficiently fund its cash requirements, including those relating to capital expenditures as well as its research and development activities, through cash and cash equivalents on hand, cash generated by operations, the issuance of corporate bonds, and debt financing.
In fiscal 2026, Toyota expects to sufficiently fund its cash requirements, including those relating to capital expenditures as well as its research and development activities, through cash and cash equivalents on hand, cash generated by operations and debt financing, such as the issuance of corporate bonds and borrowing.
The key element of Toyota’s financial strategy is maintaining a strong financial position that will allow Toyota to fund its research and development initiatives, capital expenditures and financial services operations efficiently even if earnings are subject to short-term fluctuations.
The key element of Toyota’s financial strategy is maintaining a strong financial position that will allow Toyota to continue its business and fund its research and development initiatives, capital expenditures and financial services operations strategically even if earnings are subject to short-term fluctuations.
Information on the Company — 4.B Business Overview — Research and Development.” Toyota’s research and development expenditures were approximately ¥1,202.3 billion in fiscal 2024, ¥1,241.6 billion in fiscal 2023, and ¥1,124.2 billion in fiscal 2022. Toyota presents research and development expenditures as a supplemental measure that demonstrates the amount of research and development expenditures undertaken during the relevant reporting period.
Information on the Company — 4.B Business Overview — Research and Development.” Toyota’s research and development expenditures were approximately ¥1,326.4 billion in fiscal 2025, ¥1,202.3 billion in fiscal 2024, and ¥1,241.6 billion in fiscal 2023. Toyota presents research and development expenditures as a supplemental measure that demonstrates the amount of research and development expenditures undertaken during the relevant reporting period.
Toyota does not expect its other business operations to materially contribute to Toyota’s consolidated results of operations. 73 Table of Contents Currency Fluctuations Toyota is affected by fluctuations in foreign currency exchange rates.
Toyota does not expect its other business operations to materially contribute to Toyota’s consolidated results of operations. Currency Fluctuations Toyota is affected by fluctuations in foreign currency exchange rates.
The increase in vehicle unit sales is attributable mainly to strong sales in India. 78 Table of Contents Other Thousands of units Year ended March 31, 2024 v. 2023 Change 2023 2024 Amount Percentage Toyota’s consolidated vehicle unit sales 1,565 1,638 73 4.6 % Yen in millions Year ended March 31, 2024 v. 2023 Change 2023 2024 Amount Percentage Sales revenues: Sales of products 3,225,962 4,037,260 811,298 25.1 % Financial services 246,232 352,525 106,293 43.2 Total 3,472,193 4,389,785 917,592 26.4 % Sales revenues in Other increased due primarily to the 73 thousand vehicles increase in vehicle unit sales compared with the prior fiscal year and the inflationary economy in Argentina.
Other Thousands of units Year ended March 31, 2024 v. 2023 Change 2023 2024 Amount Percentage Toyota’s consolidated vehicle unit sales 1,565 1,638 73 4.6 % 99 Yen in millions Year ended March 31, 2024 v. 2023 Change 2023 2024 Amount Percentage Sales revenues: Sales of products 3,225,962 4,037,260 811,298 25.1 % Financial services 246,232 352,525 106,293 43.2 Total 3,472,193 4,389,785 917,592 26.4 % Sales revenues in Other increased due primarily to the 73 thousand vehicles increase in vehicle unit sales compared with the prior fiscal year and the inflationary economy in Argentina.
This decrease was due to a ¥265.0 billion reduction principally attributable to value engineering activities and other cost reduction efforts concerning design-related costs, and a 79 Table of Contents ¥120.0 billion reduction attributable to cost reduction efforts principally at plants and logistics departments.
This decrease was due to a ¥265.0 billion reduction principally attributable to value engineering activities and other cost reduction efforts concerning design-related costs, and a ¥120.0 billion reduction attributable to cost reduction efforts principally at plants and logistics departments.
Exchange rate fluctuations can materially affect Toyota’s operating results. In particular, a strengthening of the Japanese yen against the U.S. dollar can have a material adverse effect on Toyota’s operating results. See “Item 5. Operating and Financial Review and Prospects — 5.A Operating Results — Overview — Currency Fluctuations” for further discussion.
In particular, a strengthening of the Japanese yen against the U.S. dollar can have a material adverse effect on Toyota’s operating results. See “Item 5. Operating and Financial Review and Prospects — 5.A Operating Results — Overview — Currency Fluctuations” for further discussion.
Toyota periodically reviews and revises, as appropriate, these credit limits. Outstanding credit facilities with credit card holders were ¥164.6 billion as of March 31, 2024. Credit Facilities with Dealers Toyota’s financial services operations maintain credit facilities with dealers. These credit facilities may be used for business acquisitions, facilities refurbishment, real estate purchases, and working capital requirements.
Toyota periodically reviews and revises, as appropriate, these credit limits. Outstanding credit facilities with credit card holders were ¥157.7 billion as of March 31, 2025. Credit Facilities with Dealers Toyota’s financial services operations maintain credit facilities with dealers. These credit facilities may be used for business acquisitions, facilities refurbishment, real estate purchases, and working capital requirements.
In Asia, 98.3% and 97.4% of vehicles sold in fiscal 2023 and 2024, respectively, were produced locally. Localizing production enables Toyota to locally purchase many of the supplies and resources used in the production process, which allows for a better match of local currency revenues with local currency expenses.
In Asia, 97.4% and 94.6% of vehicles sold in fiscal 2024 and 2025, respectively, were produced locally. Localizing production enables Toyota to locally purchase many of the supplies and resources used in the production process, which allows for a better match of local currency revenues with local currency expenses.
As of March 31, 2024, approximately 53% of long-term debt was denominated in U.S. dollars, 10% in Japanese yen, 13% in euros, 5% in Australian dollars, 4% in Canadian dollars, and 15% in other currencies. Toyota hedges interest rate risk exposure of fixed-rate borrowings by entering into interest rate swaps. There are no material seasonal variations in Toyota’s borrowings requirements.
As of March 31, 2025, approximately 50% of long-term debt was denominated in U.S. dollars, 14% in euros, 12% in Japanese yen, 5% in Australian dollars, 4% in Canadian dollars, and 15% in other currencies. Toyota hedges interest rate risk exposure of fixed-rate borrowings by entering into interest rate swaps. There are no material seasonal variations in Toyota’s borrowings requirements.
During fiscal 2024, operating income (before elimination of intersegment profits) compared with the prior fiscal year increased by ¥1,582.8 billion, or 83.2%, in Japan, ¥581.0 billion in North America, ¥330.6 billion, or 575.4%, in Europe, and ¥151.1 billion, or 21.2%, in Asia, and decreased by ¥33.0 billion, or 14.3%, in Other.
During fiscal 2024, operating income (before elimination of intersegment profits) compared with the prior fiscal year increased by ¥1,582.8 billion, or 83.2%, in Japan, ¥581.0 billion in North America, ¥330.6 billion, or 575.4%, in Europe, and ¥151.1 billion, or 21.2%, in Asia, and decreased by ¥33.0 billion, or 14.3%, in Other. 101 The following is a description of operating income in each geographic market.
As of March 31, 2024, Toyota’s total interest-bearing debt was 106.8% of Toyota Motor Corporation shareholders’ equity, compared with 103.7% as of March 31, 2023. 95 Table of Contents The following table provides information on credit ratings of Toyota’s short-term borrowing and long-term debt from Standard & Poor’s Ratings Group (S&P), Moody’s Investors Services (Moody’s), and Rating and Investment Information, Inc.
As of March 31, 2025, Toyota’s total interest-bearing debt was 108.0% of Toyota Motor Corporation shareholders’ equity, compared with 106.8% as of March 31, 2024. 107 The following table provides information on credit ratings of Toyota’s short-term borrowing and long-term debt from Standard & Poor’s Ratings Group (S&P), Moody’s Investors Services (Moody’s), and Rating and Investment Information, Inc.
This increase was due mainly to the increase in income before income taxes. The average effective tax rate for fiscal 2024 was 27.2%. Net Income Attributable to Non-controlling Interests Net income attributable to non-controlling interests increased by ¥84.8 billion, or 203.7%, to ¥126.4 billion during fiscal 2024 compared with the prior fiscal year.
The average effective tax rate for fiscal 2024 was 27.2%. Net Income Attributable to Non-controlling Interests Net income attributable to non-controlling interests increased by ¥84.8 billion, or 203.7%, to ¥126.4 billion during fiscal 2024 compared with the prior fiscal year.
Toyota expects to contribute ¥45,860 million domestically and ¥16,493 million overseas to its pension plans in fiscal 2025. Lending Commitments Credit Facilities with Credit Card Holders Toyota’s financial services operations issue credit cards to customers. As customary for credit card businesses, Toyota maintains credit facilities with holders of credit cards issued by Toyota.
Toyota expects to contribute ¥33,651 million domestically and ¥16,454 million overseas to its pension plans in fiscal 2026. Lending Commitments Credit Facilities with Credit Card Holders Toyota’s financial services operations issue credit cards to customers. As customary for credit card businesses, Toyota maintains credit facilities with holders of credit cards issued by Toyota.
In fiscal 2023 and 2024, the Japanese yen was on average weaker against the U.S. dollar and the euro in comparison to fiscal 2022 and 2023, respectively. At the end of each of fiscal 2023 and 2024, the Japanese yen was weaker against the U.S. dollar and the euro in comparison to the end of fiscal 2022 and 2023, respectively.
At the end of fiscal 2025, the Japanese yen was stronger against the U.S. dollar and the euro in comparison to the end of fiscal 2024. In fiscal 2024, the Japanese yen was on average weaker against the U.S. dollar and the euro in comparison to fiscal 2023.
Toyota also established a technical development center in Otemachi, Tokyo, Japan in October 2018 as a site for development of key IT technologies that will support automated driving in collaboration with Woven Core, as well as promotion of collaboration with venture companies and creation of new value by utilizing big data.
Toyota also established a technical development center in Otemachi, Tokyo, Japan in October 2018 as a site for development of key IT technologies that collaborates with Woven by Toyota, as well as promotes collaboration with venture companies and creation of new value by utilizing big data.
Taking the foregoing external factors and other factors into account, Toyota expects that sales revenues for fiscal 2025 will increase compared with fiscal 2024 due mainly to a favorable impact of changes in exchange rates and an increase in vehicle unit sales.
Taking the foregoing external factors and other factors into account, Toyota expects that sales revenues for fiscal 2026 will increase compared with fiscal 2025 due mainly to an increase in vehicle unit sales, partially offset by the unfavorable impact of changes in exchange rates.
In order for Toyota to maintain its high credit ratings, a number of conditions must be met, some of which are not within Toyota’s control. Such conditions include those relating to the general economic condition in Japan and the other major markets in which Toyota does business, as well as whether Toyota can successfully implement its business strategy.
In order for Toyota to maintain its high credit ratings, a number of conditions must be met, some of which are not within Toyota’s control. Such conditions include the general economic condition in Japan and the other major markets in which Toyota does business.
Financial Services Operations Segment Sales revenues for the financial services operations increased during fiscal 2024 by ¥674.5 billion, or 24.0%, to ¥3,484.1 billion compared with the prior fiscal year. This increase was due mainly to the increase in loan balance and the favorable impact of changes in exchange rates.
This increase in operating income was due mainly to the ¥2,300.0 billion impact of marketing efforts and the ¥660.0 billion favorable impact of changes in exchange rates. 104 Financial Services Operations Segment Sales revenues for the financial services operations increased during fiscal 2024 by ¥674.5 billion, or 24.0%, to ¥3,484.1 billion compared with the prior fiscal year.
The impact of soaring materials prices includes the impact of fluctuation in the price of steel, precious metals, non-ferrous alloys including aluminum, plastic parts and other production materials and parts. Cost of Products Sold Cost of products sold increased by ¥4,877.7 billion, or 20.1%, to ¥29,128.5 billion during fiscal 2023 compared with the prior fiscal year.
The impact of soaring materials prices includes the impact of fluctuation in the price of steel, precious metals, non-ferrous alloys including aluminum, plastic parts and other production materials and parts. Cost of Products Sold Cost of products sold increased by ¥1,909.5 billion, or 5.7%, to ¥35,510.1 billion during fiscal 2025 compared with the prior fiscal year.
Credit card receivables as of March 31, 2023 increased by ¥53.3 billion from March 31, 2022 to ¥554.7 billion, and that as of March 31, 2024 increased by ¥4.0 billion from March 31, 2023 to ¥558.7 billion. Other Business Operations Toyota’s other business operations consist of its information technology business and others.
Credit card receivables as of March 31, 2024 increased by ¥4.0 billion from March 31, 2023 to ¥558.7 billion, and that as of March 31, 2025 increased by ¥15.7 billion from March 31, 2024 to ¥574.5 billion. Other Business Operations Toyota’s other business operations consist of its information technology business and others.
Toyota’s primary markets based on vehicle unit sales for fiscal 2024 were: Japan (21.1%), North America (29.8%), Europe (12.6%) and Asia (19.1%). Automotive Market Environment The worldwide automotive market is highly competitive and volatile.
Toyota’s primary markets based on vehicle unit sales for fiscal 2025 were: Japan (21.3%), North America (28.9%), Europe (12.5%) and Asia (19.6%). Automotive Market Environment The worldwide automotive market is highly competitive and volatile.
Toyota’s long-term debt mainly consists of unsecured and secured loans, medium-term notes, unsecured and secured notes with weighted-average interest rates ranging from 1.92% to 7.86%, and maturity dates ranging from 2024 to 2048.
Toyota’s long-term debt mainly consists of unsecured and secured loans, unsecured notes and medium-term notes, and secured notes with weighted-average interest rates ranging from 1.93% to 8.12%, and maturity dates ranging from 2025 to 2048.
Thousands of units Year Ended March 31, 2022 2023 2024 Japan 1,924 2,069 1,993 North America 2,394 2,407 2,816 Europe 1,017 1,030 1,192 Asia 1,543 1,751 1,804 Other* 1,352 1,565 1,638 Overseas total 6,306 6,753 7,450 Total 8,230 8,822 9,443 * “Other” consists of Central and South America, Oceania, Africa and the Middle East, etc.
Thousands of units Year Ended March 31, 2023 2024 2025 Japan 2,069 1,993 1,991 North America 2,407 2,816 2,703 Europe 1,030 1,192 1,172 Asia 1,751 1,804 1,838 Other* 1,565 1,638 1,659 Overseas total 6,753 7,450 7,372 Total 8,822 9,443 9,362 * “Other” consists of Central and South America, Oceania, Africa and the Middle East, etc.
Toyota’s financial services operations also provide financing to various multi-franchise dealer organizations, referred to as dealer groups, often as part of a lending consortium, for wholesale inventory financing, business acquisitions, facilities refurbishment, real estate purchases, and working capital requirements.
Toyota’s financial services operations also provide financing to various multi-franchise dealer organizations, referred to as dealer groups, often as part of a lending consortium, for wholesale inventory financing, business acquisitions, facilities refurbishment, real estate purchases, and working capital requirements. Toyota’s outstanding credit facilities with dealers totaled ¥3,034.7 billion as of March 31, 2025.
In fiscal 2023 and 2024, Toyota produced 77.3% and 75.9%, respectively, of its non-domestic sales outside Japan. In North America, 76.8% and 75.9% of vehicles sold in fiscal 2023 and 2024, respectively, were produced locally. In Europe, 73.9% and 73.1% of vehicles sold in fiscal 2023 and 2024, respectively, were produced locally.
In fiscal 2024 and 2025, Toyota produced 75.9% and 73.5%, respectively, of its non-domestic sales outside Japan. In North America, 75.9% and 76.0% of vehicles sold in fiscal 2024 and 2025, respectively, were produced locally. In Europe, 73.1% and 69.6% of vehicles sold in fiscal 2024 and 2025, respectively, were produced locally.
Marketing efforts includes the ¥980.0 billion positive impact of changes in vehicle unit sales and sales mix and the ¥920.0 billion in other favorable impacts that are due mainly to price revisions.
Marketing efforts includes the ¥980.0 billion positive impact of changes in vehicle unit sales and sales mix and the ¥920.0 billion in other favorable impacts that are due mainly to price revisions. “Other” includes valuation gains from interest rate swaps and interest rate currency swaps of ¥140.5 billion.
Other income (loss), net increased by ¥96.0 billion, to ¥17.9 billion during fiscal 2024 compared with the prior fiscal year. 82 Table of Contents Income Taxes The provision for income taxes increased by ¥717.8 billion, or 61.1%, to ¥1,893.6 billion during fiscal 2024 compared with the prior fiscal year.
Other income (loss), net increased by ¥96.0 billion, to ¥17.9 billion during fiscal 2024 compared with the prior fiscal year. Income Taxes The provision for income taxes increased by ¥717.8 billion, or 61.1%, to ¥1,893.6 billion during fiscal 2024 compared with the prior fiscal year. This increase was due mainly to the increase in income before income taxes.
See notes 4 and 19 to the consolidated financial statements for additional information. Toyota continues to originate leases to finance new Toyota vehicles. These leasing activities are subject to residual value risk. Residual value losses could be incurred when the lessee of a vehicle does not exercise the option to purchase the vehicle at the end of the lease term.
These leasing activities are subject to residual value risk. Residual value losses could be incurred when the lessee of a vehicle does not exercise the option to purchase the vehicle at the end of the lease term. See note 3 to the consolidated financial statements for additional information.
As of March 31, 2023, Toyota had 16.1 million cardholders, an increase of 0.4 million cardholders compared with March 31, 2022. As of March 31, 2024, Toyota had 16.2 million cardholders, an increase of 0.04 million cardholders compared with March 31, 2023.
As of March 31, 2024, Toyota had 16.2 million cardholders, an increase of 0.04 million cardholders compared with March 31, 2023. As of March 31, 2025, Toyota had 16.0 million cardholders, a decrease of 0.12 million cardholders compared with March 31, 2024.
For details on receivables related to financial services and vehicles and equipment on operating leases, see notes 8 and 12 to the consolidated financial statements. Toyota’s receivables related to financial services are subject to collectability risks. These risks include consumer and dealer insolvencies and insufficient collateral values (less costs to sell) to realize the full carrying values of these receivables.
Toyota’s receivables related to financial services are subject to collectability risks. These risks include consumer and dealer insolvencies and insufficient collateral values (less costs to sell) to realize the full carrying values of these receivables. See notes 3 and 19 to the consolidated financial statements for additional information. Toyota continues to originate leases to finance new Toyota vehicles.
The amounts of net defined benefit liability (asset) will be funded through future cash contributions by Toyota or in some cases will be settled on the retirement date of each covered employee. The decrease in net defined benefit liability (asset) of the Japanese plans reflects mainly a decrease in defined benefit obligations due to an increased discount rate.
The amounts of net defined benefit liability (asset) will be funded through future cash contributions by Toyota or in some cases will be settled on the retirement date of each covered employee. The increase in net defined benefit liability (asset) of the Japanese plans reflects mainly a decrease in plan assets that resulted from a decrease in stock prices.
The current portion of long-term debt increased during fiscal 2024 by ¥2,196.2 billion, or 28.7%, to ¥9,844.8 billion and the non-current portion increased by ¥4,080.9 billion, or 24.5%, to ¥20,766.3 billion. The increase in total borrowings resulted mainly from the increasing demand for financing associated with the increase in the loan balance at financial subsidiaries.
The current portion of long-term debt increased during fiscal 2025 by ¥428.0 billion, or 4.3%, to ¥10,272.9 billion and the non-current portion increased by ¥1,755.7 billion, or 8.5%, to ¥22,522.1 billion. The increase in total borrowings resulted mainly from the increasing demand for financing associated with the increase in the loan balance at financial subsidiaries.
Yen in millions Year ended March 31, 2022 2023 2024 Japan 8,214,740 9,122,282 10,193,556 North America 10,897,946 13,509,027 17,624,268 Europe 3,692,214 4,097,537 5,503,738 Asia 5,778,115 7,076,922 7,604,269 Other* 2,796,493 3,348,530 4,169,494 * “Other” consists of Central and South America, Oceania, Africa and the Middle East.
Yen in millions Year ended March 31, 2023 2024 2025 Japan 9,122,282 10,193,556 10,719,120 North America 13,509,027 17,624,268 18,930,253 Europe 4,097,537 5,503,738 6,110,052 Asia 7,076,922 7,604,269 7,903,360 Other* 3,348,530 4,169,494 4,373,919 * “Other” consists of Central and South America, Oceania, Africa and the Middle East.
S&P Moody’s R&I Short-term borrowing A-1+ P-1 — Long-term debt A+ A1 AAA Toyota’s net defined benefit liability (asset) of Japanese plans decreased during fiscal 2024 by ¥85.9 billion, or 69.3%, to ¥38.0 billion. The net defined benefit liability (asset) of foreign plans increased during fiscal 2024 by ¥52.2 billion, or 16.6%, to ¥366.0 billion.
S&P Moody’s R&I Short-term borrowing A-1+ P-1 — Long-term debt A+ A1 AAA Toyota’s net defined benefit liability (asset) of Japanese plans increased during fiscal 2025 by ¥182.5 billion, or 479.3%, to ¥220.6 billion. The net defined benefit liability (asset) of foreign plans decreased during fiscal 2025 by ¥15.2 billion, or 4.2%, to ¥350.8 billion.
Toyota’s outstanding credit facilities with dealers totaled ¥3,794.0 billion as of March 31, 2024. 97 Table of Contents Guarantees See note 30 to the consolidated financial statements for further discussion. 5.C RESEARCH AND DEVELOPMENT, PATENTS AND LICENSES Toyota’s research and development is dedicated to capturing the increasingly diverse and sophisticated market through the development of attractive, affordable, high-quality products for customers worldwide.
Guarantees See note 30 to the consolidated financial statements for further discussion. 109 5.C RESEARCH AND DEVELOPMENT, PATENTS AND LICENSES Toyota’s research and development is dedicated to capturing the increasingly diverse and sophisticated market through the development of attractive, affordable, high-quality products for customers worldwide.
ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS 5.A OPERATING RESULTS Financial information discussed in this section is derived from Toyota’s consolidated financial statements that appear elsewhere in this annual report. The financial statements have been prepared in accordance with IFRS Accounting Standards, as issued by the IASB.
ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS 5.A OPERATING RESULTS Financial information discussed in this section is derived from Toyota’s consolidated financial statements that appear elsewhere in this annual report.
Japan Yen in millions 2024 v. 2023 Change Changes in operating income and loss: Effect of marketing efforts 1,130,000 Effect of cost reduction efforts (110,000 ) Effect of changes in exchange rates 625,000 Increase or decrease in expenses and expense reduction efforts (140,000 ) Other 77,808 Total 1,582,808 North America Yen in millions 2024 v. 2023 Change Changes in operating income and loss: Effect of marketing efforts 455,000 Effect of cost reduction efforts 125,000 Effect of changes in exchange rates 60,000 Increase or decrease in expenses and expense reduction efforts (190,000 ) Other 131,056 Total 581,056 Europe Yen in millions 2024 v. 2023 Change Changes in operating income and loss: Effect of marketing efforts 180,000 Effect of cost reduction efforts 75,000 Effect of changes in exchange rates (5,000 ) Increase or decrease in expenses and expense reduction efforts 10,000 Other 70,636 Total 330,636 81 Table of Contents Asia Yen in millions 2024 v. 2023 Change Changes in operating income and loss: Effect of marketing efforts 115,000 Effect of cost reduction efforts 35,000 Effect of changes in exchange rates (35,000 ) Increase or decrease in expenses and expense reduction efforts 5,000 Other 31,140 Total 151,140 Other Yen in millions 2024 v. 2023 Change Changes in operating income and loss: Effect of marketing efforts 125,000 Effect of cost reduction efforts (5,000 ) Effect of changes in exchange rates 40,000 Increase or decrease in expenses and expense reduction efforts (80,000 ) Other (113,017 ) Total (33,017 ) Other Income and Expenses Share of profit (loss) of investments accounted for using the equity method during fiscal 2024 increased by ¥120.0 billion, or 18.7%, to ¥763.1 billion compared with the prior fiscal year.
Japan Yen in millions 2024 v. 2023 Change Changes in operating income and loss: Effect of marketing efforts 1,130,000 Effect of cost reduction efforts (110,000 ) Effect of changes in exchange rates 625,000 Increase or decrease in expenses and expense reduction efforts (140,000 ) Other 77,808 Total 1,582,808 North America Yen in millions 2024 v. 2023 Change Changes in operating income and loss: Effect of marketing efforts 455,000 Effect of cost reduction efforts 125,000 Effect of changes in exchange rates 60,000 Increase or decrease in expenses and expense reduction efforts (190,000 ) Other 131,056 Total 581,056 Europe Yen in millions 2024 v. 2023 Change Changes in operating income and loss: Effect of marketing efforts 180,000 Effect of cost reduction efforts 75,000 Effect of changes in exchange rates (5,000 ) Increase or decrease in expenses and expense reduction efforts 10,000 Other 70,636 Total 330,636 Asia Yen in millions 2024 v. 2023 Change Changes in operating income and loss: Effect of marketing efforts 115,000 Effect of cost reduction efforts 35,000 Effect of changes in exchange rates (35,000 ) Increase or decrease in expenses and expense reduction efforts 5,000 Other 31,140 Total 151,140 102 Other Yen in millions 2024 v. 2023 Change Changes in operating income and loss: Effect of marketing efforts 125,000 Effect of cost reduction efforts (5,000 ) Effect of changes in exchange rates. 40,000 Increase or decrease in expenses and expense reduction efforts.
The timely introduction of new or redesigned vehicles is also an important factor in satisfying customer needs. Toyota’s ability to satisfy changing customer preferences can affect its revenues and earnings significantly. The profitability of Toyota’s automotive operations is affected by many factors.
Toyota’s ability to satisfy changing customer preferences can affect its revenues and earnings significantly. The profitability of Toyota’s automotive operations is affected by many factors.
This increase was due mainly to an increase during fiscal 2023 in net income attributable to the shareholders of companies accounted for by the equity method. Other finance income increased by ¥44.5 billion, or 13.3%, to ¥379.3 billion during fiscal 2023 compared with the prior fiscal year.
This decrease was due mainly to a decrease during fiscal 2025 in net income attributable to the shareholders of companies accounted for by the equity method. Other finance income decreased by ¥190.5 billion, or 25.5%, to ¥556.7 billion during fiscal 2025 compared with the prior fiscal year.
Generally, a weakening of the Japanese yen against other currencies has a positive effect on Toyota’s revenues, operating income and net income attributable to Toyota Motor Corporation. A strengthening of the Japanese yen against other currencies has the opposite effect.
Generally, a weakening of the Japanese yen against other currencies has a positive effect on Toyota’s revenues, operating income and net income attributable to Toyota Motor Corporation. In fiscal 2025, the Japanese yen was on average weaker against the U.S. dollar and the euro in comparison to fiscal 2024.
“Other” includes valuation gains from interest rate swaps and interest rate currency swaps of ¥140.5 billion. 80 Table of Contents The favorable impact of changes in exchange rates was due mainly to the ¥590.0 billion impact of overseas transactions such as imports and exports denominated in foreign currencies.
The favorable impact of changes in exchange rates was due mainly to the ¥590.0 billion impact of overseas transactions such as imports and exports denominated in foreign currencies.
Meanwhile, commercial banks and other captive automobile finance companies also compete against Toyota’s wholesale financing activities. Toyota’s total receivables related to financial services increased during fiscal 2024 mainly due to an increase in retail receivables. Also, vehicles and equipment on operating leases increased during fiscal 2024 mainly due to the impact of changes in exchange rates.
Meanwhile, commercial banks and other captive automobile finance companies also compete against Toyota’s wholesale financing activities. 84 Toyota’s total receivables related to financial services increased during fiscal 2025 mainly due to an increase in loan balance.
See note 3 to the consolidated financial statements for additional information. Toyota enters into interest rate swap agreements and cross currency interest rate swap agreements to convert its fixed-rate debt to variable-rate functional currency debt.
Toyota enters into interest rate swap agreements and cross currency interest rate swap agreements to convert its fixed-rate debt to variable-rate functional currency debt.
Total capital expenditures for property, plant and equipment, including vehicles and equipment on operating leases, increased by ¥1,351.8 billion to ¥4,848.0 billion in fiscal 2024, compared to ¥3,496.2 billion in fiscal 2023.The increase was primarily attributable to the ¥954.7 billion increase in capital expenditures for the purchase of leased assets in the financial services operations segment compared to the previous fiscal year. 94 Table of Contents Toyota expects investments in property, plant and equipment, excluding vehicles and equipment on operating leases, to be approximately ¥2,150.0 billion during fiscal 2025.
The increase was primarily attributable to the ¥931.7 billion increase in capital expenditures for the purchase of leased assets in the financial services operations segment compared to the prior fiscal year. Toyota expects investments in property, plant and equipment, excluding vehicles and equipment on operating leases, to be approximately ¥2,300.0 billion during fiscal 2026.
Trade accounts and notes receivable, less allowance for doubtful accounts increased during fiscal 2024 by ¥203.2 billion, or 5.7%, to ¥3,789.4 billion. This increase was due mainly to an increase in the impact of changes in exchange rates. Inventories increased during fiscal 2024 by ¥349.7 billion, or 8.2%, to ¥4,605.3 billion.
Trade accounts and notes receivable, less allowance for doubtful accounts decreased during fiscal 2025 by ¥109.7 billion, or 2.9%, to ¥3,679.7 billion. This decrease was due mainly to a decrease in the impact of changes in exchange rates. Inventories decreased during fiscal 2025 by ¥7.1 billion, or 0.2%, to ¥4,598.2 billion.
Overview The business segments of Toyota include automotive operations, financial services operations and all other operations. Automotive operations are Toyota’s most significant business segment, accounting for 89% of Toyota’s total revenues before the elimination of intersegment revenues for fiscal 2024.
The financial statements have been prepared in accordance with IFRS Accounting Standards, as issued by the IASB. 82 Overview The business segments of Toyota include automotive operations, financial services operations and all other operations. Automotive operations are Toyota’s most significant business segment, accounting for 88% of Toyota’s total revenues before the elimination of intersegment revenues for fiscal 2025.
Operating income from financial services operations increased by ¥132.5 billion, or 30.3%, to ¥570.0 billion during fiscal 2024 compared with the prior fiscal year. This increase was due mainly to decrease in valuation losses on interest rate swaps stated at fair value in sales finance subsidiaries in the United States.
This increase was due mainly to decrease in valuation losses on interest rate swaps stated at fair value in sales finance subsidiaries in the United States. All Other Operations Segment Sales revenues for Toyota’s other operations segments increased by ¥143.2 billion, or 11.7%, to ¥1,368.1 billion during fiscal 2024 compared with the prior fiscal year.
Operating income from the automotive operations increased by ¥2,440.8 billion, or 111.9%, to ¥4,621.4 billion during fiscal 2024 compared with the prior fiscal year. This increase in operating income was due mainly to the ¥2,300.0 billion impact of marketing efforts and the ¥660.0 billion favorable impact of changes in exchange rates.
This increase was due mainly to the increase in loan balance and the favorable impact of changes in exchange rates. Operating income from financial services operations increased by ¥113.4 billion, or 19.9%, to ¥683.5 billion during fiscal 2025 compared with the prior fiscal year.
This increase was due mainly to an increase during fiscal 2023 in interest income. Other finance costs increased by ¥81.1 billion, or 184.4%, to ¥125.1 billion during fiscal 2023 compared with the prior fiscal year. This increase was due mainly to an increase during fiscal 2023 in losses on securities revaluation.
This decrease was due mainly to a decrease during fiscal 2025 in profit on sales of securities and interest income. Other finance costs increased by ¥87.0 billion, or 83.9%, to ¥190.7 billion during fiscal 2025 compared with the prior fiscal year. This increase was due mainly to an increase during fiscal 2025 in losses on securities revaluation.
Through continued cost reduction efforts together with suppliers, however, that increase was partially offset by a ¥205.0 billion reduction principally attributable to value engineering activities and other cost reduction efforts concerning design-related costs, and a ¥50.0 billion reduction attributable to cost reduction efforts principally at plants and logistics departments.
The impact includes a ¥240.0 billion reduction principally attributable to value engineering activities and other cost reduction efforts concerning design-related costs, resulting from continued cost reduction efforts together with our suppliers, and a ¥45.0 billion reduction attributable to cost reduction efforts principally at plants and logistics departments.
Operating Income Yen in millions 2023 v. 2022 Change Changes in operating income and loss: Effect of marketing efforts 680,000 Effect of cost reduction efforts (1,290,000 ) Effect of changes in exchange rates 1,280,000 Increase or decrease in expenses and expense reduction efforts (525,000 ) Other (415,672 ) Total (270,672 ) Toyota’s operating income decreased by ¥270.6 billion, or 9.0%, to ¥2,725.0 billion during fiscal 2023 compared with the prior fiscal year.
Operating Income Yen in millions 2025 v. 2024 Change Changes in operating income and loss: Effect of marketing efforts 145,000 Effect of cost reduction efforts ±0 Effect of changes in exchange rates 590,000 Increase or decrease in expenses and expense reduction efforts (990,000 ) Other (302,348 ) Total (557,348 ) Toyota’s operating income decreased by ¥557.3 billion, or 10.4%, to ¥4,795.5 billion during fiscal 2025 compared with the prior fiscal year.
All Other Operations Segment Sales revenues for Toyota’s other operations segments increased by ¥143.2 billion, or 11.7%, to ¥1,368.1 billion during fiscal 2024 compared with the prior fiscal year. Operating income from Toyota’s other operations segments increased by ¥71.7 billion, or 69.4%, to ¥175.2 billion during fiscal 2024 compared with the prior fiscal year.
Operating income from Toyota’s other operations segments increased by ¥71.7 billion, or 69.4%, to ¥175.2 billion during fiscal 2024 compared with the prior fiscal year. Related Party Transactions See note 32 to the consolidated financial statements for further discussion.
Other Comprehensive Income, Net of Tax Other comprehensive income, net of tax decreased by ¥315.4 billion to ¥827.7 billion for fiscal 2023 compared with the prior fiscal year.
Other Comprehensive Income, Net of Tax Other comprehensive income, net of tax decreased by ¥2,863.1 billion to losses of ¥746.0 billion for fiscal 2025 compared with the prior fiscal year.
This decrease was due to the ¥1,290.0 billion aggregate unfavorable impact of factors categorized as cost reduction efforts (including fluctuations in raw materials prices), the ¥525.0 billion aggregate unfavorable impact of changes in expenses and expense reduction efforts and other factors, partially offset by the ¥1,280.0 billion favorable impact of changes in exchange rates and the ¥680.0 billion impact of marketing efforts.
This decrease was due to the ¥990.0 billion aggregate unfavorable impact of changes in expenses and expense reduction efforts, as well as the ¥302.3 billion unfavorable impact of “Other” factors, partially offset by the ¥590.0 billion favorable impact of changes in exchange rates and the ¥145.0 billion favorable impact of marketing efforts.
This increase was due mainly to an increase during fiscal 2023 in net income of consolidated subsidiaries. 91 Table of Contents Net Income Attributable to Toyota Motor Corporation Net income attributable to Toyota Motor Corporation decreased by ¥398.7 billion, or 14.0%, to ¥2,451.3 billion during fiscal 2023 compared with the prior fiscal year.
This decrease was due mainly to a decrease during fiscal 2025 in net income of consolidated subsidiaries. 94 Net Income Attributable to Toyota Motor Corporation Net income attributable to Toyota Motor Corporation decreased by ¥179.8 billion, or 3.6%, to ¥4,765.0 billion during fiscal 2025 compared with the prior fiscal year.
Toyota’s short-term borrowings consist of loans with a weighted-average interest rate of 2.27% and commercial paper with a weighted-average interest rate of 4.53%. Short-term borrowings increased during fiscal 2024 by ¥897.7 billion, or 19.6%, to ¥5,487.9 billion.
Toyota’s short-term borrowings consist of loans with a weighted-average interest rate of 2.26% and commercial paper with a weighted-average interest rate of 3.82%. Short-term borrowings decreased during fiscal 2025 by ¥23.4 billion, or 0.4%, to ¥5,464.4 billion.

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Item 6. [Reserved]

Selected Financial Data — reserved (removed by SEC in 2021)

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Biggest changePresident 2012 Senior Managing Officer of TMC 2015 Member of the Board of Directors and Senior Managing Officer of TMC 2017 Vice Chairman of TMC (to present) (important concurrent duties) Representative Director of Institute for International Economic Studies 331 Koji Sato (October 19, 1969) President, Member of the Board of Directors 1992 Joined TMC 2017 Executive General Manager of TMC 2020 Operating Officer of TMC 2021 Operating Officer of TMC (current system) 2023 Operating Officer and President of TMC President of TMC (to present) (important concurrent duties) Chairman of TOYOTA GAZOO Racing Europe GmbH Chairman and CEO of Toyota Motor North America, Inc. 56 Hiroki Nakajima (April 10, 1962) Member of the Board of Directors, Operating Officer, Vice President 1987 Joined TMC 2014 Executive General Manager of TMC 2015 Managing Officer of TMC 2020 Operating Officer of TMC 2023 Operating Officer and Executive Vice President of TMC (current system) Member of the Board of Directors, Operating Officer, Vice President of TMC (to present) (important concurrent duties) President of Commercial Japan Partnership Technologies Corporation 20 102 Table of Contents Name (Date of Birth) Position Brief Career Summary and Important Concurrent Duties Number of Common Shares (in thousands) Yoichi Miyazaki (October 19, 1963) Member of the Board of Directors, Operating Officer, Vice President 1986 Joined TMC 2015 Managing Officer of TMC 2019 Operating Officer of TMC 2022 Operating Officer of TMC (current system) 2023 Operating Officer and Executive Vice President of TMC Member of the Board of Directors, Operating Officer, Vice President of TMC (to present) 44 Simon Humphries (March 30, 1967) Member of the Board of Directors, Operating Officer 1988 Joined DCA Design in UK. 1994 Joined TMC 2016 President of Toyota Europe Design Development S.A.R.L. 2018 Executive General Manager of TMC 2023 Operating Officer of TMC Member of the Board of Directors, Operating Officer (to present) (important concurrent duties) Executive Vice President of Calty Design Research, Inc. 11 Ikuro Sugawara (March 6, 1957) Outside Member of the Board of Directors 1981 Joined Ministry of International Trade and Industry 2010 Director-General of the Industrial Science and Technology Policy and Environment Bureau, Ministry of Economy, Trade and Industry 2012 Director-General of the Manufacturing Industries Bureau, Ministry of Economy, Trade and Industry 2013 Director-General of the Economic and Industrial Policy Bureau, Ministry of Economy, Trade and Industry 2015 Vice-Minister of Ministry of Economy, Trade and Industry 2017 Retired from the Ministry of Economy, Trade and Industry 2017 Special Advisor to the Cabinet 2018 Retired from Special Advisor to the Cabinet 2018 Outside Member of the Board of Directors of TMC (to present) (important concurrent duties) Independent Director of Hitachi, Ltd.
Biggest changeChairman of TOYOTA GAZOO Racing Europe GmbH 71 114 Name (Date of Birth) Position Brief Career Summary and Important Concurrent Duties Number of Common Shares (in thousands) Yoichi Miyazaki (October 19, 1963) Executive Vice President, Member of the Board of Directors (Representative Director), Operating Officer 1986 Joined TMC 2015 Managing Officer of TMC 2019 Operating Officer of TMC 2022 Operating Officer of TMC (current system) 2023 Operating Officer and Executive Vice President of TMC Member of the Board of Directors, Operating Officer, Vice President of TMC 2025 Executive Vice President, Member of the Board of Directors, Operating Officer of TMC (to present) 97 Shigeaki Okamoto (February 20, 1961) Outside Member of the Board of Directors 1983 Joined the Ministry of Finance 2006 Director for the Budget Bureau, Planning and Administration Division of Budget Bureau, Ministry of Finance 2009 Head of Secretariat Division, Minister’s Secretariat, Ministry of Finance 2012 Deputy Director-General of the Budget Bureau, Ministry of Finance 2015 Deputy Vice Minister, Ministry of Finance 2017 Director-General of the Budget Bureau, Ministry of Finance 2018 Administrative Vice Minister, Ministry of Finance 2020 Retired as Administrative Vice-Minister of Finance, Ministry of Finance 2022 Deputy Chairperson of the Board, Japan Tobacco Inc.
Members of management who, together with the president, have cross-functional oversight of the entire company, were redefined as “operating officers.” In-house company presidents, regional CEOs, and chief officers, as on-site leaders of business implementation elements, were given authority while being consolidated into the classification of “senior professional/senior management.” The roles of operating officers and senior professionals/senior management are to be determined where and as needed, and persons appointed as operating officers and senior professionals/senior management will change in accordance with the challenges faced and the path that should be taken, as the company exercises greater flexibility in making appointments.
Members of management who, together with the president, have cross-functional oversight of the entire company, were redefined as “operating officers.” In-house company presidents, regional CEOs, and chief officers, as on-site leaders of business implementation elements, were given authority while being consolidated into the classification of “senior professional/senior management.” The roles of operating officers and senior professionals/senior management are to be determined where and as needed, and persons appointed as operating officers and senior professionals/senior management will change in accordance with the challenges faced and the path that should be taken, as Toyota exercises greater flexibility in making appointments.
Name (Date of Birth) Position Brief Career Summary and Important Concurrent Duties Number of Common Shares (in thousands) Akio Toyoda (May 3, 1956) Chairman of the Board of Directors 1984 Joined TMC 2000 Member of the Board of Directors of TMC 2002 Managing Director of TMC 2003 Senior Managing Director of TMC 2005 Executive Vice President of TMC 2009 President of TMC 2023 Chairman of TMC (to present) (important concurrent duties) Chairman of TOYOTA FUDOSAN CO., LTD.
Name (Date of Birth) Position Brief Career Summary and Important Concurrent Duties Number of Common Shares (in thousands) Akio Toyoda (May 3, 1956) Chairman of the Board of Directors (Representative Director) 1984 Joined TMC 2000 Member of the Board of Directors of TMC 2002 Managing Director of TMC 2003 Senior Managing Director of TMC 2005 Executive Vice President of TMC 2009 President of TMC 2023 Chairman of TMC (to present) (important concurrent duties) Chairman of TOYOTA FUDOSAN CO., LTD.
Toyota maintains its board of directors and senior management at an adequate size, and ensures they are overall balanced and diverse, including from the perspective of gender and nationality. Three outside members of the board of directors have been appointed in order to further reflect the opinions of those from outside the company in management’s decision-making process.
Toyota maintains its Board of Directors and senior management at an adequate size, and ensures they are overall balanced and diverse, including from the perspective of gender and nationality. Five outside members of the Board of Directors have been appointed in order to further reflect the opinions of those from outside the company in management’s decision-making process.
Directors, Senior Management and Employees — 6.A Directors and Senior Management.” None of Toyota’s shares of common stock entitles the holder to any preferential voting rights. As of March 31, 2024, Toyota does not have any stock option plan for which stock options or stock acquisition rights are exercisable or will become exercisable in the future.
Directors, Senior Management and Employees — 6.A Directors and Senior Management.” None of Toyota’s shares of common stock entitles the holder to any preferential voting rights. As of March 31, 2025, Toyota does not have any stock option plan for which stock options or stock acquisition rights are exercisable or will become exercisable in the future.
In order to meet these objectives, following the introduction of “region-based operations,” the “business unit system” and the “in-house company system” in 2011, 2013 and 2016, respectively, in April 100 Table of Contents 2017 Toyota further clarified that, for the purpose of further accelerating decision-making and operational execution, members of the board of directors are responsible for decision-making and management oversight and that operating officers are responsible for operational execution.
In order to meet these objectives, following the introduction of “region-based operations,” the “business unit system” and the “in-house company system” in 2011, 2013 and 2016, respectively, in April 2017 Toyota further clarified that, for the purpose of further accelerating decision-making and operational execution, members of the Board of Directors are responsible for decision-making and management oversight 112 and that operating officers are responsible for operational execution.
Method of Determining Performance-based Remuneration (Bonus and Share Compensation) Directors with Japanese Citizenship (Excluding Outside Members of the Board of Directors) Toyota sets the total amount of compensation that each member of the board of directors receives annually (“Annual Total Remuneration”) at an appropriate level based on position and duties by referencing a benchmark of Japanese and also global companies selected based on the size of each person’s role and other factors.
Method of Determining Performance-based Remuneration (Bonus and Share Compensation) Directors with Japanese Citizenship (Excluding Outside Members of the Board of Directors and Members of the Board of Directors who are Audit and Supervisory Committee Members) Toyota sets the total amount of compensation that each member of the Board of Directors receives annually (“Annual Total Remuneration”) at an appropriate level based on position and duties by referencing a benchmark of Japanese and also global companies selected based on the size of each person’s role and other factors.
The following tables set forth a breakdown of persons employed by business segment and by geographic location as of March 31, 2024.
The following tables set forth a breakdown of persons employed by business segment and by geographic location as of March 31, 2025.
Name (Date of Birth) Position Brief Career Summary and Important Concurrent Duties Number of Common Shares Kumi Fujisawa (March 15, 1967) Substitute Audit & Supervisory Board Member 1995 Founder and President of IFIS Limited Ltd. 2000 Director of Think Tank SophiaBank 2011 Public Governor of the Japan Securities Dealers Association (to present) 2012 Director of Organization for Supporting the Turnaround of Businesses Damaged by the Great East Japan Earthquake 2013 President of Think Tank SophiaBank 2014 Outside Director of Toyota Tsusho Corporation 2022 Chairperson of Institute for International Socio-Economic Studies (to present) (important concurrent duties) Chairperson of Institute for International Socio-Economic Studies Outside Director of Net Protections Holdings, Inc.
(to present) 2025 Outside Member of the Board of Directors of TMC (to present) (important concurrent duties) Deputy Chairperson of the Board, Japan Tobacco Inc. 1 115 Name (Date of Birth) Position Brief Career Summary and Important Concurrent Duties Number of Common Shares (in thousands) Kumi Fujisawa (March 15, 1967) Outside Member of the Board of Directors 1995 Founder and President of IFIS Limited Ltd. 2000 Director of Think Tank SophiaBank 2011 Public Governor of the Japan Securities Dealers Association (to present) 2012 Director of Organization for Supporting the Turnaround of Businesses Damaged by the Great East Japan Earthquake 2013 President of Think Tank SophiaBank 2014 Outside Director of Toyota Tsusho Corporation 2018 Outside Director of Net Protections Holdings, Inc. 2022 Chairperson of Institute for International Socio-Economic Studies (to present) 2024 Substitute Audit & Supervisory Board Member of TMC 2025 Outside Member of the Board of Directors of TMC (to present) (important concurrent duties) Chairperson of Institute for International Socio-Economic Studies Outside Director of Net Protections Holdings, Inc.
Eligible Persons Members of the board of directors of Toyota (excluding outside members of the board of directors) Total amount of the share compensation Maximum of 4.0 billion yen per year Amount of the share compensation payable to each member of the board of directors Set each year considering factors such as corporate results, duties, and performance Type of shares to be allotted and method of allotment Issue or disposal of common stock (with transfer restrictions under an allotment agreement) Total number of shares to be allotted Maximum of 4,000,000 shares per year in total to eligible members of the board of directors (Provided, however, that if a stock split, including a gratis allotment, or a reverse stock split of Toyota’s common stock is carried out after June 15, 2022, or in case of events that otherwise require an adjustment to the total number of Toyota’s shares of common stock to be issued or disposed of as restricted share compensation, such total number of shares will be adjusted to a reasonable extent.) Amount to be paid Determined by the board of directors of Toyota based on the closing price of Toyota’s common stock on the Tokyo Stock Exchange on the business day prior to each resolution of the board of directors, within a range that is not particularly advantageous to eligible members of the board of directors 118 Table of Contents Transfer restriction period A period of three to fifty years from the allotment date, which is determined by the board of directors of Toyota in advance Conditions for removal of transfer restrictions Restrictions will be removed upon the expiration of the transfer restriction period.
Eligible Persons Members of the Board of Directors of Toyota (excluding outside members of the Board of Directors and members of the Board of Directors who are Audit and Supervisory Committee members) Total amount of the share compensation Maximum of 4.0 billion yen per year (the Eligible Members of the Board of Directors will make an in-kind contribution of all monetary claims granted within the said amount to receive delivery of the common stock to be issued or disposed of for the allotment) Amount of the share compensation payable to each member of the Board of Directors Set each year considering factors such as corporate results, duties, and performance Type of shares to be allotted and method of allotment Issue or disposal of common stock (with transfer restrictions under an allotment agreement) Total number of shares to be allotted Maximum of 4,000,000 shares per year in total to the Eligible Members of the Board of Directors (Provided, however, that if a stock split, including a gratis allotment, or a reverse stock split of Toyota’s common stock is carried out after June 15, 2022, or in case of events that otherwise require an adjustment to the total number of Toyota’s shares of common stock to be issued or disposed of as restricted share compensation, such total number of shares will be adjusted to a reasonable extent.) 128 Amount to be paid Determined by the Board of Directors of Toyota based on the closing price of Toyota’s common stock on the Tokyo Stock Exchange on the business day prior to each resolution of the Board of Directors, within a range that is not particularly advantageous to the Eligible Members of the Board of Directors Transfer restriction period A period of three to fifty years from the allotment date, which is determined by the Board of Directors of Toyota in advance Conditions for removal of transfer restrictions Restrictions will be removed upon the expiration of the transfer restriction period.
The amounts of STI and LTI change in the same manner by reflecting STI and LTI performance evaluating indicators set for directors with Japanese citizenship (excluding outside members of the Board of Directors) and individual performance evaluation results.
The amounts of STI and LTI change in the same manner by reflecting STI and LTI performance evaluating indicators set for directors with Japanese citizenship (excluding outside members of the Board of Directors and members of the Board of Directors who are Audit and Supervisory Committee Members) and individual performance evaluation results.
Performance-based remuneration consists of STI and LTI as is the case with directors with Japanese citizenship (excluding outside members of the Board of Directors).
Performance-based remuneration consists of STI and LTI as is the case with directors with Japanese citizenship (excluding outside members of the Board of Directors and members of the Board of Directors who are Audit and Supervisory Committee Members).
Toyota’s average number of temporary employees on a consolidated basis was 96,482 during fiscal 2024. 6.E SHARE OWNERSHIP For information on the number of shares of Toyota’s common stock held by each member of the board of directors and audit & supervisory board member as of June 2024, see “Item 6.
Toyota’s average number of temporary employees on a consolidated basis was 95,530 during fiscal 2025. 6.E SHARE OWNERSHIP For information on the number of shares of Toyota’s common stock held by each member of the Board of Directors as of June 2025, see “Item 6.
However, Toyota is currently a party to, and otherwise from time to time experiences, labor disputes in some of the countries in which it operates. Toyota does not expect any disputes to which it is currently a party to materially affect Toyota’s consolidated financial position.
In general, Toyota considers its labor relations with all of its workers to be good. However, Toyota is currently a party to, and otherwise from time to time experiences, labor disputes in some of the countries in which it operates. Toyota does not expect any disputes to which it is currently a party to materially affect Toyota’s consolidated financial position.
The board of directors also resolves to delegate the determination of the amount of remuneration for each member of the board of directors to the Executive Compensation Meeting. 108 Table of Contents The Executive Compensation Meeting reviews the remuneration system for members of board of directors and senior management on which it will consult with the board of directors and determines the amount of remuneration for each member of the board of directors, taking into account factors such as corporate performance as well as individual job responsibilities and performance, in accordance with the policy for determining remuneration for and other payments to each member of the board of directors established by the board of directors.
The Executive Compensation Meeting reviews the remuneration system for members of Board of Directors (excluding those who are Audit and Supervisory Committee members) and senior management on which it will consult with the Board of Directors and determines the amount of remuneration for each member of the Board of Directors (excluding those who are Audit and Supervisory Committee members), taking into account factors such as corporate performance as well as individual job responsibilities and performance, in accordance with the policy for determining remuneration for and other payments to each member of the Board of Directors (excluding those who are Audit and Supervisory Committee members) established by the Board of Directors.
Gratis acquisition by Toyota Toyota will be able to acquire all allotted shares without consideration in the case of violations of laws and regulations or other reasons specified by the board of directors of Toyota during the transfer restriction period. Members of the board of directors of Toyota with foreign citizenship are not eligible for the share compensation.
Gratis acquisition by Toyota Toyota will be able to acquire all allotted shares without consideration in the case of violations of laws and regulations or other reasons specified by the Board of Directors of Toyota during the transfer restriction period.
STI (Short Term Incentive) Around 20% Cash compensation LTI (Long Term Incentive) Around 50% Share compensation Concept of Performance Evaluating Indicators STI Financial indicators (1) Consolidated operating income (single year) Indicator for evaluating Toyota’s efforts based on short-term business performance (2) Fluctuation of Toyota’s market capitalization Corporate value indicator for shareholders and investors to evaluate Toyota’s efforts LTI Financial indicators (3) Consolidated operating income (multiple years) Indicator for evaluating Toyota’s medium- to long-term efforts based on business performance (4) Total shareholder return Corporate value indicator for shareholders and investors to evaluate Toyota’s medium- to long-term efforts (5) Return on equity Non-financial indicator (6) Progress of efforts to resolve sustainability issues Indicator for evaluating Toyota’s medium- to long-term efforts based on the degree of corporate value enhancement Individual performance evaluation Qualitative evaluation of performance of each member of the Board of Directors 110 Table of Contents Method and Reference Value for Each Performance Evaluating Indicator and Evaluation Result STI Evaluation Weight Evaluation Method Reference Value Evaluation Result (1) Consolidated operating income (single year) 70% Evaluate the degree of attainment of consolidated operating income in fiscal 2024, using the average consolidated operating income of Toyota over the last 10 fiscal years as a reference value (set in 2023) 2.5 trillion yen 191% (2) Fluctuation of Toyota’s market capitalization 30% Comparatively evaluate the fluctuation of TMC’s market capitalization for fiscal 2024 (average from January through March), using the market capitalization of Toyota and TOPIX for fiscal 2023 (average from January through March) as reference values Toyota: 25.5 trillion yen TOPIX: 1,990.68 111 Table of Contents LTI Evaluation Weight Evaluation Method Reference Value Evaluation Result (3) Consolidated operating income (multiple years) 35% Evaluate the degree of attainment of consolidated operating income for the last three fiscal years, including fiscal 2024, using the average consolidated operating income of Toyota over the last 10 fiscal years as a reference value (set in 2023) 2.5 trillion yen 139% (4) Total shareholder return 17.5% Comparatively evaluate Toyota’s total shareholder return, using the rate of change calculated by dividing the sum of the stock price of Toyota on the last day of fiscal 2024 and the cumulative amount of dividend per share during the period from the fiscal year that is four years before fiscal 2024 through fiscal 2024 by the stock price on the last day of the fiscal year that is five years before fiscal 2024 and the rate of change in TOPIX Net Total Return calculated in the same manner as reference values TOPIX: 196.2% (5) Return on equity 17.5% Comparatively evaluate Toyota’s return on equity for fiscal 2024 using the levels recommended by the Ito Review *1 as reference values 8% (6) Progress of efforts to resolve sustainability issues 30% Evaluate the degree of contribution of business activities during fiscal 2024 in accordance with the six key issues (materiality) *2 Six key issues (materiality) *1 A report on corporate governance reforms released by the Ministry of Economy, Trade and Industry in 2014 *2 The six key issues identified by Toyota are: (1) Expanding the Value of Mobility; (2) Safety & Reliability; (3) Coexistence of Humanity & the Earth (including carbon neutrality); (4) Supporting the Community and Employment; (5) Active Participation for All; and (6) Strong Production and Business Operation 112 Table of Contents Concept of Individual Performance Evaluation For the determination of Annual Total Remuneration, the LTI base amount is subject to adjustment based on individual performance evaluation.
STI (Short Term Incentive) Around 20% Cash compensation LTI (Long Term Incentive) Around 50% Share compensation 121 Concept of Performance Evaluating Indicators STI Financial indicators (1) Consolidated operating income (single year) Indicator for evaluating Toyota’s efforts based on short-term business performance (2) Fluctuation of Toyota’s market capitalization Corporate value indicator for shareholders and investors to evaluate Toyota’s efforts Individual performance evaluation Qualitative evaluation of performance of each member of the Board of Directors LTI Financial indicators (3) Consolidated operating income (multiple years) Indicator for evaluating Toyota’s medium- to long-term efforts based on business performance (4) Total shareholder return Corporate value indicator for shareholders and investors to evaluate Toyota’s medium- to long-term efforts (5) Return on equity Non-financial indicator (6) Progress of efforts to resolve sustainability issues Indicator for evaluating Toyota’s medium- to long-term efforts based on the degree of corporate value enhancement Individual performance evaluation Qualitative evaluation of performance of each member of the Board of Directors Method and Reference Value for Each Performance Evaluating Indicator and Evaluation Result STI Evaluation Weight Evaluation Method Reference Value Evaluation Result (1) Consolidated operating income (single year) 70% Evaluate the degree of attainment of consolidated operating income in fiscal 2025, using the average consolidated operating income of Toyota over the last 10 fiscal years as a reference value (set in 2023) 2.5 trillion yen 157% (2) Fluctuation of Toyota’s market capitalization 30% Comparatively evaluate the fluctuation of TMC’s market capitalization for fiscal 2025 (average from January through March), using the market capitalization of Toyota and TOPIX for fiscal 2024 (average from January through March) as reference values Toyota: 46.8 trillion yen TOPIX: 2,665.15 122 (3) Consolidated operating income (multiple years) 35% Evaluate the degree of attainment of consolidated operating income for the last three fiscal years, including fiscal 2025, using the average consolidated operating income of Toyota over the last 10 fiscal years as a reference value (set in 2023) 2.5 trillion yen 138% (4) Total shareholder return 17.5% Comparatively evaluate Toyota’s total shareholder return, using the rate of change calculated by dividing the sum of the stock price of Toyota on the last day of fiscal 2025 and the cumulative amount of dividend per share during the period from the fiscal year that is four years before fiscal 2025 through fiscal 2025 by the stock price on the last day of the fiscal year that is five years before fiscal 2025 and the rate of change in TOPIX Net Total Return calculated in the same manner as reference values TOPIX: 213.4% (5) Return on equity 17.5% Comparatively evaluate Toyota’s return on equity for fiscal 2025 using the levels recommended by the Ito Review *1 as reference values 8% (6) Progress of efforts to resolve sustainability issues 30% Evaluate the degree of contribution of business activities during fiscal 2025 in accordance with the six key issues (materiality) *2 Six key issues (materiality) *1 A report on corporate governance reforms released by METI in 2014 *2 The six key issues identified by Toyota are: (1) Expanding the Value of Mobility; (2) Safety & Reliability; (3) Coexistence of Humanity & the Earth (including carbon neutrality); (4) Supporting the Community and Employment; (5) Active Participation for All; and (6) Strong Production and Business Operation As a result of the model certification application issues that were reported by Toyota to MLIT in 2024, we reflected this incident in the evaluation for “Strong Production & Business Operation,” one of our six key evaluation criteria, for members of the Board of Directors (excluding outside members of the Board of Directors) and accordingly reduced remuneration amounts for fiscal 2024.
The board of directors considers that such decisions made by the Executive Compensation Meeting are in line with the policy on determining remuneration and other payments for each member of the board of directors. Remuneration for audit & supervisory board members is determined by the audit & supervisory board within the scope determined by resolution of the shareholders’ meeting.
The Board of Directors considers that such decisions made by the Executive Compensation Meeting are in line with the policy on determining remuneration and other payments for each member of the Board of Directors (excluding those who are Audit and Supervisory Committee members).
Members of the board of directors and audit & supervisory board members may serve any number of consecutive terms. The board of directors may appoint one Chairman of the Board of Directors and one President, as well as one or more Vice Chairmen of the Board and Executive Vice Presidents.
Members of the Board of Directors may serve any number of consecutive terms. The Board of Directors may appoint one Chairman of the Board of Directors and one President, as well as one or more Vice Chairmen of the Board and Executive Vice Presidents. The Board of Directors elects, pursuant to its resolutions, one or more Representative Directors.
Together, these audit & supervisory board members form the audit & supervisory board. The audit & supervisory board members have the duty to examine the financial statements and business reports which are submitted by the board of directors to the general shareholders’ meeting.
Audit and Supervisory Committee members have the duty to examine the financial statements and business reports which are submitted by the Board of Directors to the general shareholders’ meeting. The Audit and Supervisory Committee members also audit the execution of duties of Toyota’s members of the Board of Directors.
Most regular employees of Toyota Motor Corporation and its consolidated subsidiaries in Japan, other than management, are required to become members of the labor unions that compose the Federation of All Toyota Workers’ Unions.
Most regular employees of Toyota Motor Corporation and its consolidated subsidiaries in Japan, other than management, are required to become members of the labor unions that compose the Federation of All Toyota Workers’ Unions. Approximately 87% of Toyota Motor Corporation’s regular employees in Japan are members of this union. In Japan, basic wages and other working conditions are negotiated annually.
Toyota’s board of directors resolves the share compensation within the maximum share compensation amount of 4.0 billion yen per year (also, the total number of Toyota’s shares of common stock to be allotted shall not exceed a maximum of 4 million shares per year in total for eligible members of the board of directors (excluding outside members of the board of directors)) established at the 115th Ordinary General Shareholders’ Meeting held on June 13, 2019 and the 118th Ordinary General Shareholders’ Meeting held on June 15, 2022.
Toyota’s Board of Directors resolves the restricted share compensation within the maximum restricted share compensation amount of 4.0 billion yen per year (also, the total number of Toyota’s shares of common stock to be allotted shall not exceed a maximum of 4 million shares per year in total for members of the Board of Directors (excluding outside members of the Board of Directors and members of the Board of Directors who are Audit and Supervisory Committee members; “Eligible Members”)) established at the 121st Ordinary General Shareholders’ Meeting held on June 12, 2025.
Based on the resolution of the 115th Ordinary General Shareholders’ Meeting held on June 13, 2019 concerning remuneration for the members of the board of directors of Toyota, the maximum cash compensation was set at 3.0 billion yen per year (of which, the maximum amount payable to outside members of the board of directors is 0.3 billion yen per year), and the maximum share compensation was set at 4.0 billion yen per year.
Based on the resolution of the 121st Ordinary General Shareholders’ Meeting held on June 12, 2025 concerning remuneration for the members of the Board of Directors (excluding those who are Audit and Supervisory Committee members) of Toyota, the maximum cash compensation was set at 3.0 billion yen per year (of which, the maximum amount payable to outside members of the Board of Directors is 0.3 billion yen per year).
At least half of the audit & supervisory board members are required to be an “outside” audit & supervisory board member, which is any person who satisfies all of the following requirements: (a) the person has never been a member of the board of directors, accounting counselor (in the case that an accounting counselor is a legal entity, an employee of such entity who is in charge of its affairs), executive officer, manager or employee of Toyota or its subsidiaries during the ten year period before becoming an outside audit & supervisory board member; (b) if the person was an audit & supervisory board member of Toyota or any of its subsidiaries at any time during the ten year period before becoming an outside audit & supervisory board member, such person has not been a member of the board of directors, accounting counselor (in the case that an accounting counselor is a legal entity, an employee of such entity who is in charge of its affairs), executive officer, manager or employee of Toyota or any of its subsidiaries during the ten year period before becoming an audit & supervisory board member of Toyota or any of its subsidiaries; and (c) the person is not a spouse or relative within the second degree of kinship of any member of the board of directors or manager or other key employee of Toyota. 116 Table of Contents The audit & supervisory board members may not at the same time be a member of the board of directors, an accounting counselor (in case that an accounting counselor is a judicial person, a member of such judicial person who is in charge of its affairs), executive officers, general managers or employees of Toyota or any of its subsidiaries.
A majority of the members of the Board of Directors who are Audit and Supervisory Committee members are required to be “outside” members of the Board of Directors, which is any person who satisfies all of the following requirements: (a) A person who is not, and has never been during the ten year period before becoming an outside member of the Board of Directors, an executive director (a member of the Board of Directors who engages in the execution of business), executive officer, manager or employee (collectively, “Executive Director, etc.”) of Toyota or its subsidiaries; 126 (b) if a person was a member of the Board of Directors, accounting advisor (in the case that an accounting advisor is a legal entity, a member of such entity who is in charge of its affairs) or Audit & Supervisory Board member (excluding those who have ever been Executive Directors, etc.) of Toyota or any of its subsidiaries at any time during the ten year period before becoming an outside member of the Board of Directors, such person who has not been an Executive Director, etc. of Toyota or any of its subsidiaries during the ten year period before becoming a member of the Board of Directors, accounting counselor or Audit & Supervisory Board member; and (c) a person who is not a spouse or relative within the second degree of kinship of a member of the Board of Directors, manager, or other key employee of Toyota.
STI is provided in the form of cash compensation based on “consolidated operating income” and “fluctuation of Toyota’s market capitalization*.” LTI is provided in the form of share compensation based on “multiple financial indicators,” “non-financial indicator,” and “individual performance evaluation.” * Calculated by multiplying the closing price of Toyota’s common stock on the Tokyo Stock Exchange by the number of shares issued after deducting the number of shares of treasury stock 109 Table of Contents Composition of Compensation Type of Remuneration % of Total Remuneration Remuneration Method Concept Base compensation Around 30% Cash compensation The percentage of total remuneration represented by LTI is designed to increase as an individual’s roles and duties become greater.
STI is provided in the form of cash compensation based on “consolidated operating income,” “fluctuation of Toyota’s market capitalization*,” and “individual performance evaluation.” LTI is provided in the form of share compensation based on “multiple financial indicators,” “non-financial indicator,” and “individual performance evaluation.” In addition, there are cases where LTI may be paid in cash to retiring members of the Board of Directors (excluding outside members of the Board of Directors and members of the Board of Directors who are Audit and Supervisory Committee members) and members of the Board of Directors who do not reside in Japan (excluding outside members of the Board of Directors and members of the Board of Directors who are Audit and Supervisory Committee members). * Calculated by multiplying the closing price of Toyota’s common stock on the Tokyo Stock Exchange by the number of shares issued after deducting the number of shares of treasury stock Composition of Compensation Type of Remuneration % of Total Remuneration Remuneration Method Concept Base compensation Around 30% Cash compensation The percentage of total remuneration represented by LTI is designed to increase as an individual’s roles and duties become greater.
Under the Companies Act, Toyota must have at least three audit & supervisory board members.
Under the Companies Act, Toyota must have at least three members of the Board of Directors who are Audit and Supervisory Committee members.
None of Toyota’s members of the board of directors is party to a service contract with Toyota or any of its subsidiaries that provides for benefits upon termination of employment.
Each Representative Director represents Toyota generally in the conduct of its affairs. The Board of Directors has the ultimate responsibility for the administration of Toyota’s affairs. None of Toyota’s members of the Board of Directors is party to a service contract with Toyota or any of its subsidiaries that provides for benefits upon termination of employment.
The range of adjustments based on individual performance evaluations is set commensurate with position and job responsibilities within the range of 50% above or below of the 40% of the LTI base amount. The amount of LTI for each member of the Board of Directors is calculated based on evaluation results.
The range of adjustments based on individual performance evaluations is set within the 123 range of 50% above or below of the STI base amount and the LTI base amount, which reflect the performance evaluation results of financial and non-financial indicators, commensurate with position and job responsibilities.
Toyota does not have a remuneration committee. However, members of Toyota’s Executive Compensation Meeting discuss remuneration for members of the board of directors.
Audit and Supervisory Committee members are not required to be, and Toyota’s Audit & Supervisory Committee members are not, certified public accountants. Toyota does not have a remuneration committee. However, members of Toyota’s Executive Compensation Meeting discuss remuneration for members of the Board of Directors.
Executive Compensation Meetings were held in June, September, October and December 2023 and February, March and April 2024 to discuss and determine the amount of remuneration for fiscal 2024 and other relevant matters.
Executive Compensation Meetings were held in June, July, August, September, October, November and December 2024 and February, March and April 2025 to discuss and determine the amount of remuneration for fiscal 2025 and other relevant matters. 120 Remuneration for the members of the Board of Directors was determined with the unanimous consent of the Executive Compensation Meeting.
Compensation The aggregate amount of remuneration, including bonuses, accrued for all members of the board of directors and audit & supervisory board members as a group by Toyota for services in all capacities was ¥4,460 million during fiscal 2024.
Additional Information Regarding Share Compensation For additional details regarding share compensation provided to Members of the Board of Directors of Toyota, see “Item 6.E. — Share Ownership.” Fiscal 2025 Compensation The aggregate amount of remuneration, including bonuses, accrued for all members of the Board of Directors and Audit & Supervisory Board members as a group by Toyota for services in all capacities was ¥4,972 million during fiscal 2025.
The board of directors resolves the policy for determining remuneration for and other payments to each member of the board of directors and the executive remuneration system as well as the total amount of remuneration for a given fiscal year.
The Board of Directors resolves the policy for determining remuneration for and other payments to each member of the Board of Directors (excluding those who are Audit & Supervisory Committee members) and the executive remuneration system for a given fiscal year.
Composition and Method of Setting Performance-based Remuneration in the Treatment of Retired Members of the Board of Directors with Foreign Citizenship Performance-based remuneration is set based on consolidated operating income, the fluctuation of the market capitalization of Toyota and individual performance, taking into account each member’s job 114 Table of Contents responsibilities and the remuneration standards of such member’s home country (application determined individually).
In addition, there are cases where Toyota provide income tax compensation for certain members of the Board of Directors in light of the difference in income tax rates with that applied to them when they were at their former affiliation. 124 Composition and Method of Setting Performance-based Remuneration in the Treatment of Retired Members of the Board of Directors with Foreign Citizenship Performance-based remuneration is set based on consolidated operating income, the fluctuation of the market capitalization of Toyota and individual performance, taking into account each member’s job responsibilities and the remuneration standards of such member’s home country (application determined individually).
The amount of remuneration for each member of the board of directors of Toyota and the remuneration system are decided by the board of directors and the “Executive Compensation Meeting,” a majority of the members of which are outside members of the board of directors, to ensure the independence of the decision.
The number of members of the Board of Directors to which such resolutions at the 121st Ordinary General Shareholders’ Meeting related was six (including two outside members of the Board of Directors). 119 The amount of remuneration for each member of the Board of Directors (excluding those who are Audit and Supervisory Committee members) of Toyota and the remuneration system are decided by the Board of Directors and the “Executive Compensation Meeting,” a majority of the members of which are outside members of the Board of Directors, to ensure the independence of the decision.
Outside Director of Shizuoka Financial Group, Inc. — 6.B COMPENSATION Decision Making Policy and Process Toyota believes that it is critical to appoint individuals who practice “product-centered and region-centered management” and contribute to decision-making aimed at sustainable growth into the future based on the “Toyota Philosophy.” Moreover, these individuals should be able to play a significant role in transforming Toyota into a mobility company and contribute to the solutions of social issues, including climate change, 107 Table of Contents through efforts for electrification, intelligence, and diversification and building external partnerships therefor based on trust and friendship and internal two-way interactive teamwork.
In order to convey top management’s aspirations and Toyota’s direction to all stakeholders, Toyota communicates what Toyota is really like through “Toyota Times.” Toyota believes that it is critical to appoint individuals who practice “product-centered and region-centered management” and contribute to decision-making aimed at sustainable growth into the future based on the “Toyota Philosophy.” Moreover, these individuals should be able to play a significant role in transforming Toyota into a “mobility company” through responding to electrification, intelligence, and diversification and external partnerships based on trust and friendship and internal two-way interactive teamwork, while working towards solutions for social challenges such as the climate change issue.
Toyota sets an appropriate executive compensation level for Annual Total Remuneration based on position and duties by referencing a benchmark of Japanese and also global companies selected based on the size of each person’s role and other factors. * Calculated by multiplying the closing price of Toyota’s common stock for fiscal 2024 on the Tokyo Stock Exchange by the number of shares issued after deducting the number of treasury stock Concept of Each Item of Performance-based Remuneration for Retired Members of the Board of Directors Consolidated operating income Indicator for evaluating Toyota’s efforts based on business performance Fluctuation of the market capitalization Corporate value indicator for shareholders and investors to evaluate Toyota’s efforts Individual performance evaluation Qualitative evaluation of performance of each member of the board of directors 113 Table of Contents Method and Reference Value for Evaluating Indicators and Evaluation Result of Performance-based Remuneration for Retired Members of the Board of Directors Evaluation Weight Evaluation Method Reference Value Evaluation Result for Fiscal 2022 Consolidated operating income 70% Evaluate the degree of attainment of consolidated operating income in fiscal 2024, using required income (set in 2011) for Toyota’s sustainable growth as reference value ¥1 trillion 330% Fluctuation of Toyota’s market capitalization 30% Comparatively evaluate the fluctuation of Toyota’s market capitalization for fiscal 2024 (average of January-March), using the market capitalization of Toyota and the TOPIX of fiscal 2023 (average of January-March) as reference values Toyota: ¥25.5 trillion TOPIX : ¥1,990.68 Method of Setting Annual Total Remuneration for Retired Members of the Board of Directors Annual Total Remuneration is set using a theoretical formula that takes into account the benchmarking results of remuneration for members of the board of directors.
Toyota sets an appropriate executive compensation level for Annual Total Remuneration based on position and duties by referencing a benchmark of Japanese and also global companies selected based on the size of each person’s role and other factors. * Calculated by multiplying the closing price of Toyota’s common stock for fiscal 2024 on the Tokyo Stock Exchange by the number of shares issued after deducting the number of treasury stock Concept of Each Item of Performance-based Remuneration for Retired Members of the Board of Directors Consolidated operating income Indicator for evaluating Toyota’s efforts based on business performance Fluctuation of the market capitalization Corporate value indicator for shareholders and investors to evaluate Toyota’s efforts Individual performance evaluation Qualitative evaluation of performance of each member of the Board of Directors Directors with Foreign Citizenship (Excluding Outside Members of the Board of Directors and Members of the Board of Directors who are Audit and Supervisory Committee Members) Fixed remuneration and performance-based remuneration are set based on the remuneration levels and structures that allow Toyota to secure and retain talented personnel.
The members of the meeting are Shigeru Hayakawa, the Vice Chairman of the Board of Directors, and Yoichi Miyazaki, Ikuro Sugawara, Sir Philip Craven, Masahiko Oshima and Emi Osono, each, a Member of the Board of Directors. 6.D EMPLOYEES The total number of Toyota employees, on a consolidated basis, was 380,793 as of March 31, 2024, 375,235 as of March 31, 2023, and 372,817 as of March 31, 2022.
The members of the meeting are Yoichi Miyazaki (Chairperson), a member of the Board of Directors, and Shigeaki Okamoto and Kumi Fujisawa, each an outside member of the Board of Directors. 6.D EMPLOYEES The total number of Toyota employees, on a consolidated basis, was 383,853 as of March 31, 2025, 380,793 as of March 31, 2024, and 375,235 as of March 31, 2023.
The board of directors decides by resolution the policy for determining remuneration for and other payments to each member of the board of directors. Remuneration is effectively linked to corporate performance while reflecting individual job responsibilities and performance. Remuneration for outside members of the board of directors and audit & supervisory board members consists only of fixed payments.
Remuneration is effectively linked to corporate performance while reflecting individual job responsibilities and performance. Remuneration for outside members of the Board of Directors and members of the Board of Directors who are Audit and Supervisory Committee members consists only of fixed payments. As a result, this remuneration is not readily impacted by business performance, helping to ensure independence from management.
Outside Director of FUJIFILM Holdings Corporation — 103 Table of Contents Name (Date of Birth) Position Brief Career Summary and Important Concurrent Duties Number of Common Shares (in thousands) Sir Philip Craven (July 4, 1950) Outside Member of the Board of Directors 1989 President of the International Wheelchair Basketball Federation 2001 President of the International Paralympic Committee 2002 Retired as President of the International Wheelchair Basketball Federation 2017 Retired as President of the International Paralympic Committee 2018 Outside Member of the Board of Directors of TMC (to present) — Masahiko Oshima (September 13, 1960) Outside Member of the Board of Directors 1984 Joined The Mitsui Bank Limited 2012 Executive Officer of Sumitomo Mitsui Banking Corporation (SMBC) 2014 Managing Executive Officer of SMBC 2017 Director and Managing Executive Officer of SMBC Director and Senior Managing Executive Officer of SMBC 2018 Senior Managing Corporate Executive Officer of Sumitomo Mitsui Financial Group, Inc.
(TMNA) 2015 Managing Officer of TMC (Chief Officer of General Planning Division, Deputy Chief Officer of General Administration & Human Resources Group, General Counsel and Chief Legal Officer) 2017 Executive Vice President (EVP) of TMNA 2020 Deputy Chief Risk Officer of TMC 2022 Deputy Chief Compliance Officer of TMC 2025 Retired from TMNA 2025 Member of the Board of Directors who is a member of the Audit and Supervisory Committee of TMC (to present) (important concurrent duties) Outside member of the Board of Directors of Southwest Airlines Co. — 117 Name (Date of Birth) Position Brief Career Summary and Important Concurrent Duties Number of Common Shares (in thousands) Masahiko Oshima (September 13, 1960) Outside Member of the Board of Directors who is a Member of the Audit and Supervisory Committee 1984 Joined The Mitsui Bank Limited 2012 Executive Officer of Sumitomo Mitsui Banking Corporation (SMBC) 2014 Managing Executive Officer of SMBC 2017 Director and Managing Executive Officer of SMBC Director and Senior Managing Executive Officer of SMBC 2018 Senior Managing Corporate Executive Officer of Sumitomo Mitsui Financial Group, Inc.
Shareholders elect the members of the board of directors and audit & supervisory board members at the general shareholders’ meeting. The normal term of office of a member of the board of directors is one year and that of an audit & supervisory board member is four years.
The normal term of office of members of the Board of Directors (excluding members of the Board of Directors who are Audit and Supervisory Committee members) is one year, and that of members of the Board of Directors who are Audit and Supervisory Committee members is two years.
Bonuses are negotiated at the time of wage negotiations and are based on Toyota’s financial results, prospects and other factors. In fiscal 2024, the wage raises and bonuses were at the level demanded by the labor union. In general, Toyota considers its labor relations with all of its workers to be good.
In addition, in accordance with Japanese national custom, each employee is also paid a semi-annual bonus. Bonuses are negotiated at the time of 127 wage negotiations and are based on Toyota’s financial results, prospects and other factors. In fiscal 2025, the wage raises and bonuses were at the level demanded by the labor union.
The number of members of the board of directors as of the conclusion of the 115th Ordinary General Shareholders’ Meeting was nine (including three outside members of the board of directors).
The number of members of the Board of Directors who are Audit and Supervisory Committee members as resolved at the Ordinary General Shareholders’ Meeting is four (including three outside members of the Board of Directors).
Toyota also has an employee stock ownership association in Japan for employees and full time and part time company advisors. Members of the employee stock ownership association set aside certain amounts from their monthly salary and bonuses to purchase Toyota’s common stock through the employee stock ownership association.
Members of the employee stock ownership association set aside certain amounts from their monthly salary and bonuses to purchase Toyota’s common stock through the employee stock ownership association. As of March 31, 2025, the employee stock ownership association held 69,368,281 shares of Toyota’s common stock.
Segment Number of Employees Location Number of Employees Automotive 336,291 Japan 202,152 Financial services 14,658 North America 63,842 All other 23,325 Europe 23,610 Unallocated 6,519 Asia 66,304 Other* 24,885 Total 380,793 Total 380,793 * “Other” consists of Central and South America, Oceania, Africa and the Middle East.
Segment Number of Employees Location Number of Employees Automotive 339,062 Japan 203,504 Financial services 15,321 North America 65,294 All other 23,093 Europe 24,366 Unallocated 6,377 Asia 65,749 Other* 24,940 Total 383,853 Total 383,853 * “Other” consists of Central and South America, Oceania, Africa and the Middle East.
Motor Company Senior In House Counsel of Matsushita Electronic Components Co., Ltd. 2008 Hogan Lovells Horitsu Jimusho Gaikokuho Kyodo Jigyo 2012 Head of Legal of Molex Japan LLC 2017 President of O’Connell Consultants 2018 CEO of Catherine O’Connell Law (to present) 2023 Outside Audit & Supervisory Board Member of TMC (to present) (important concurrent duties) Registered foreign attorney External Audit & Supervisory Board Member of Fujitsu Limited — Hiromi Osada (June 11, 1973) Outside Audit & Supervisory Board Member 1999 Joined Chunichi Shimbun Co., Ltd. 2021 Editorial writer and Leader for reserve reporters in the Business News Department of Chunichi Shimbun Co., Ltd. 2023 Editorial Committee Member and International General Desk of Chunichi Shimbun Co., Ltd. 2024 Retired from Chunichi Shimbun Co., Ltd. 2024 Outside Audit & Supervisory Board Member of TMC (to present) — 1.
(to present) 2 Hiromi Osada (June 11, 1973) Outside Member of the Board of Directors who is a Member of the Audit and Supervisory Committee 1999 Joined Chunichi Shimbun Co., Ltd. 2021 Editorial writer and Leader for reserve reporters in the Business News Department of Chunichi Shimbun Co., Ltd. 2023 Editorial Committee Member and International General Desk of Chunichi Shimbun Co., Ltd. 2024 Retired from Chunichi Shimbun Co., Ltd. 2024 Outside Audit & Supervisory Board Member of TMC 2025 Member of the Board of Directors who is a member of the Audit and Supervisory Committee of TMC (to present) 0 *1.
Performance-based compensation paid by Toyota to James Kuffner includes performance-based compensation for the year ended March 2022 (68 million yen). 115 Table of Contents The amounts above were recorded as expenses in fiscal 2024. 6.C BOARD PRACTICES Toyota’s articles of incorporation provide for a board of directors of not more than 20 members and for not more than seven audit & supervisory board members.
The amounts above were recorded as expenses in fiscal 2025. 6.C BOARD PRACTICES Toyota’s articles of incorporation provide that the number of members of the Board of Directors is no more than 20, and the number of members of the Board of Directors who are Audit and Supervisory Committee members is no more than seven.
As of the date of this annual report, the Executive Compensation Meeting consists of vice chairman of the board of directors Shigeru Hayakawa (Chairman), member of the board of directors Yoichi Miyazaki, and outside members of the board of directors Ikuro Sugawara, Sir Philip Craven, Masahiko Oshima and Emi Osono*.
(Note 2) The members of the Executive Compensation Meeting were changed from Ikuro Sugawara, Sir Philip Craven, Masahiko Oshima and Emi Osono, each an outside member of the Board of Directors, to Shigeaki Okamoto and Kumi Fujisawa, each an outside member of the Board of Directors.
Teiko Kudo, an outside member of the Board of Directors, retired as an outside member of the Board of Directors upon the conclusion of the Ordinary General Shareholders’ Meeting held on June 14, 2023.
Shigeru Hayakawa retired as the Vice Chairman of the Board of Directors as of the 121st Ordinary General Shareholders’ Meeting held on June 12, 2025.
The principal topics discussed at Executive Compensation Meetings included: • Review of remuneration level for each position and job responsibility • Review of remuneration composition for each position and job responsibility • Review of benchmarks and evaluation of actual results of fiscal 2024 • Determination of the amount of remuneration for each member of the board of directors As a result of discussions at the Executive Compensation Meeting, Toyota has revised part of the policies for determining remuneration for each member of the Board of Directors from fiscal 2023 in order to be able to better put into practice the purport of the Overall Policy.
The principal topics discussed at Executive Compensation Meetings included: • Remuneration level for each position and job responsibility • Review of the range of adjustments in performance-based remuneration • Evaluation of actual results of fiscal 2025 • Determination of the amount of remuneration for each member of the Board of Directors (Note) The amount of remuneration for each outside member of the Board of Directors and the amount of remuneration for each non-outside member of the Board of Directors were determined at meetings of the Executive Compensation Meeting held in June 2024 and April 2025, respectively.
(to present) Audit & Supervisory Board Member of TMC (to present) 150 Masahide Yasuda (April 1, 1949) Full-time Audit & Supervisory Board Member 1972 Joined TMC 2000 General Manager of Overseas Parts Division of TMC 2007 President of Toyota Motor Corporation Australia Ltd. 2014 Chairman of Toyota Motor Corporation Australia Ltd. 2017 Retired as Chairman of Toyota Motor Corporation Australia Ltd. 2018 Audit & Supervisory Board Member of TMC (to present) 63 Katsuyuki Ogura (January 25, 1963) Full-time Audit & Supervisory Board Member 1985 Joined TMC 2015 General Manager of Affiliated Companies Finance Dept. of TMC 2018 General Manager of Audit & Supervisory Board Office of TMC 2019 Audit & Supervisory Board Member of TMC (to present) (important concurrent duties) Outside Audit & Supervisory Board Member of Aichi Steel Corporation 30 105 Table of Contents Name (Date of Birth) Position Brief Career Summary and Important Concurrent Duties Number of Common Shares (in thousands) George Olcott (May 7, 1955) Outside Audit & Supervisory Board Member 1986 Joined S.G.Warburg & Co., Ltd 1999 President of UBS Asset Management (Japan) 1999 President, Japan UBS Brinson 2000 Managing Director, Equity Capital Markets, UBS Warburg Tokyo 2001 Judge Business School, University of Cambridge 2005 FME Teaching Fellow, Judge Business School, University of Cambridge 2008 Senior Fellow, Judge Business School, University of Cambridge 2022 Outside Audit & Supervisory Board Member of TMC (to present) (important concurrent duties) Outside Director of Kirin Holdings Company, Limited 3 Catherine O’Connell (February 10, 1967) Outside Audit & Supervisory Board Member 1987 Joined Japan Travel Bureau Inc. 1994 Senior Solicitor of Anderson Lloyd Barristers & Solicitors (New Zealand) 2002 In House Counsel of Olympus Corporation 2004 Senior In House Counsel of Matsushita Electric Industrial Co., Ltd.
Outside Director of Shizuoka Financial Group, Inc. — George Olcott (May 7, 1955) Outside Member of the Board of Directors who is a member of the Audit and Supervisory Committee 1986 Joined S.G.Warburg & Co., Ltd 1999 President of UBS Asset Management (Japan) 1999 President, Japan UBS Brinson 2000 Managing Director, Equity Capital Markets, UBS Warburg Tokyo 2001 Judge Business School, University of Cambridge 2005 FME Teaching Fellow, Judge Business School, University of Cambridge 2008 Senior Fellow, Judge Business School, University of Cambridge 2022 Outside Audit & Supervisory Board Member of TMC 2025 Member of the Board of Directors who is a member of the Audit and Supervisory Committee of TMC (to present) 4 116 Name (Date of Birth) Position Brief Career Summary and Important Concurrent Duties Number of Common Shares (in thousands) Christopher P.
As of March 31, 2024, the employee stock ownership association held 70,518,475 shares of Toyota’s common stock. 6.F DISCLOSURE OF A REGISTRANT’S ACTION TO RECOVER ERRONEOUSLY AWARDED COMPENSATION None.
No shares have been granted under the planned ESOP Trust. 6.F DISCLOSURE OF A REGISTRANT’S ACTION TO RECOVER ERRONEOUSLY AWARDED COMPENSATION None.
The amount of remuneration for audit & supervisory board members of Toyota was set at 30 million yen or less per month at the 104th Ordinary General Shareholders’ Meeting held on June 24, 2008. The number of audit & supervisory board members as of the conclusion of the 104th Ordinary General Shareholders’ Meeting was seven.
The total amount of remuneration for members of the Board of Directors who are Audit and Supervisory Committee members is set at no more than 360 million yen per year based on a resolution at the 121st Ordinary General Shareholders’ Meeting held on June 12, 2025.
Mr. Koji Sato, who is President and Member of the Board of Directors, concurrently serves as Operating Officer (President). 106 Table of Contents 2.
Mr. Koji Sato, who is President and Member of the Board of Directors, concurrently serves as Operating Officer (President). *2. Toyota transitioned from a company with Audit & Supervisory Board to a company with Audit and Supervisory Committee on June 12, 2025, following approval at the 121st Ordinary General Shareholders’ Meeting held on the same day.
Toyota has six audit & supervisory board members, four of whom are outside audit & supervisory board members.
Toyota has five members of the Board of Directors who are Audit and Supervisory Committee members, three of whom are outside Audit and Supervisory Committee members. 113 Set forth below are brief summaries of Toyota’s members of the Board of Directors.
Toyota’s Annual Securities Report filed with the Kanto Local Bureau of Finance on June 25, 2024, contained the following information concerning compensation in fiscal 2024 on a consolidated basis for members of the board of directors and audit & supervisory board members whose total compensation exceeded ¥100 million during such period: Compensation per Type (million yen) Performance-based Compensation Name, Position Classification of Company Fixed Compensation Bonus Share Compensation Retirement Benefits Total Compensation (millions of yen) Akio Toyoda, Member of the Board of Directors Toyota Motor Corporation 289 324 1,009 (280,000 shares) — 1,622 Shigeru Hayakawa, Member of the Board of Directors Toyota Motor Corporation 77 133 179 (50,000 shares) — 389 Koji Sato*1, Member of the Board of Directors Toyota Motor Corporation 87 187 349 (97,000 shares) — 623 Hiroki Nakajima*1, Member of the Board of Directors Toyota Motor Corporation 48 110 137 (38,000 shares — 295 Yoichi Miyazaki*1, Member of the Board of Directors Toyota Motor Corporation 50 110 137 (38,000 shares — 297 Simon Humphries*1, Member of the Board of Directors Toyota Motor Corporation 36 55 51 (14,000 shares) — 143 James Kuffner*2, Member of the Board of Directors Toyota Motor Corporation 27 101 — — 531 Consolidated subsidiary (Woven by Toyota, Inc.) 133 271 — — *1 For Koji Sato, the President and a Member of the Board of Directors, and Hiroki Nakajima, Yoichi Miyazaki and Simon Humphries, who are Members of the Board of Directors, who all assumed office as directors at the Ordinary General Shareholders’ Meeting held on June 14, 2023, nine months’ compensation is listed. *2 For James Kuffner, who retired as director at the Ordinary General Shareholders’ Meeting held on June 14, 2023, three months’ compensation is listed.
Compensation per Type (million yen) Performance-based Compensation Name, Position Classification of Company Fixed Compensation Bonus Share Compensation Retirement Benefits Total Compensation (millions of yen) Akio Toyoda, Member of the Board of Directors Toyota Motor Corporation 395 601 953 (352,000 shares) — 1,949 Shigeru Hayakawa, Member of the Board of Directors*1 Toyota Motor Corporation 95 118 152 — 365 Koji Sato, Member of the Board of Directors Toyota Motor Corporation 193 236 397 (147,000 shares) — 826 Hiroki Nakajima, Member of the Board of Directors Toyota Motor Corporation 96 147 175 (65,000 shares) — 418 Yoichi Miyazaki, Member of the Board of Directors Toyota Motor Corporation 100 147 175 (65,000 shares) — 422 Simon Humphries, Member of the Board of Directors Toyota Motor Corporation 55 115 89 (33,000 shares) — 259 James Kuffner*2, Member of the Board of Directors Toyota Motor Corporation — 244 — — 244 125 *1 Share compensation is paid in cash to Shigeru Hayakawa, who retired as the Vice Chairman of the Board of Directors at the 121st Ordinary General Shareholders’ Meeting held on June 12, 2025. *2 Performance-based compensation paid by Toyota to James Kuffner, who retired as member of the Board of Directors, includes performance-based compensation for the years ended March 2023, 2024 and 2025, and is disclosed as the payment amount has been finalized.
Removed
In order to convey top management’s aspirations and the company’s direction to all stakeholders, Toyota communicates what Toyota is really like through “Toyota Times.” Toyota believes that it is critical to appoint individuals who practice “product-centered and region-centered management” and contribute to decision-making aimed at sustainable growth into the future based on the “Toyota Philosophy”.
Added
Toyota transitioned from a company with Audit & Supervisory Board to a company with Audit and Supervisory Committee, following approval at the 121st Ordinary General Shareholders’ Meeting held on June 12, 2025.
Removed
Moreover, these individuals should be able to play a significant role in transforming Toyota into a “mobility company” through responding to electrification, intelligence, and diversification and external partnerships based on trust and friendship and internal two-way interactive teamwork, while working towards solutions for social challenges such as the climate change issue.
Added
Director of DENSO Corporation Representative Director of ROOKIE Racing, Inc.
Removed
In order to be prepared in the event Toyota lacks the number of audit & supervisory board members required by law, one substitute audit & supervisory board member has been appointed pursuant to Article 329, Paragraph 3 of the Companies Act. 101 Table of Contents Set forth below are brief summaries of Toyota’s members of the board of directors and audit & supervisory board members.
Added
Chairman of TOYOTA GAZOO Racing World Rally Team 23,747 Koji Sato (October 19, 1969) President, Member of the Board of Directors (Representative Director) 1992 Joined TMC 2017 Executive General Manager of TMC 2020 Operating Officer of TMC 2021 Operating Officer of TMC (current system) 2023 Operating Officer and President of TMC President of TMC (to present) (important concurrent duties) Chairman of Toyota Motor North America, Inc. 187 Hiroki Nakajima (April 10, 1962) Executive Vice President, Member of the Board of Directors (Representative Director), Operating Officer 1987 Joined TMC 2014 Executive General Manager of TMC 2015 Managing Officer of TMC 2020 Operating Officer of TMC 2023 Operating Officer and Executive Vice President of TMC (current system) Member of the Board of Directors, Operating Officer, Vice President of TMC 2025 Executive Vice President, Member of the Board of Directors, Operating Officer of TMC (to present) (important concurrent duties) President and Representative Director of Commercial Japan Partnership Technologies Corporation President and Representative Director of Commercial Japan Partnership Technologies Asia Co., Ltd.
Removed
Director of DENSO Corporation Representative Director of ROOKIE Racing, Inc. Chairman of TOYOTA GAZOO Racing World Rally Team 23,466 Shigeru Hayakawa (September 15, 1953) Vice Chairman of the Board of Directors 1977 Joined Toyota Motor Sales Co., Ltd. 2007 Managing Officer of TMC 2007 Toyota Motor North America, Inc.
Added
Reynolds (January 11, 1963) Member of the Board of Directors who is a member of the Audit and Supervisory Committee 1986 Law clerk for Judge Damon J. Keith, U.S. Court of Appeals for the Sixth Circuit 1987 Joined Hughes Hubbard & Reed 1989 Joined U.S.
Removed
(SMFG) Senior Managing Executive Officer of SMBC 2019 Deputy President and Executive Officer of SMFG Director and Deputy President of SMBC 2023 Deputy Chairman of SMBC Outside Member of the Board of Directors of TMC (to present) 2024 Advisor of SMBC (important concurrent duties) Advisor of SMBC 1 Emi Osono (August 8, 1965) Outside Member of the Board of Directors 1988 Joined The Sumitomo Bank, Limited 1998 Visiting Professor of the Waseda Institute of Asia-Pacific Studies (WIAPS) 2000 Full-time lecturer at School of International Corporate Strategy, Hitotsubashi University Business School 2002 Assistant Professor at School of International Corporate Strategy, Hitotsubashi University Business School 2010 Professor at School of International Corporate Strategy, Hitotsubashi University Business School 2018 Professor at School of Business Administration, Hitotsubashi University Business School 2022 Dean and Professor at School of Business Administration and School of International 0 104 Table of Contents Name (Date of Birth) Position Brief Career Summary and Important Concurrent Duties Number of Common Shares (in thousands) Corporate Strategy, Hitotsubashi University Business School (to present) 2023 Outside Member of the Board of Directors of TMC (to present) (important concurrent duties) Professor at School of Business Administration, Hitotsubashi University Business School Outside Director of Tokio Marine Holdings, Inc.
Added
Attorney’s Office, Southern District of New York 1994 Joined Morgan, Lewis & Bockius 2007 Joined Toyota Motor Sales, U.S.A., Inc. (TMS) 2008 Group Vice President & General Counsel of TMS 2012 General Counsel & Chief Legal Officer of Toyota Motor North America, Inc.
Removed
Takeshi Shirane (September 5, 1952) Full-time Audit & Supervisory Board Member 1977 Joined TMC 2001 General Manager of Production Management Div. of TMC 2004 General Manager of Global Procurement Planning Div. of TMC 2005 General Manager of 1st Procurement Div. of TMC Managing Officer of TMC 2009 Senior Managing Director of TMC 2011 Senior Managing Officer of TMC Advisor of Kanto Auto Works, Ltd. 2012 President of Kanto Auto Works, Ltd.
Added
(SMFG) Senior Managing Executive Officer of SMBC 2019 Deputy President and Executive Officer of SMFG Director and Deputy President of SMBC 2023 Deputy Chairman of SMBC 2023 Outside Member of the Board of Directors of TMC 2024 Retired from SMBC 2024 Chairman and Representative Director, Ares Management Asia Japan KK.
Removed
President of Toyota Motor East Japan, Inc. 2019 Chairman of the Board of Toyota Motor East Japan, Inc. 2023 Senior Executive Advisor of Toyota Motor East Japan, Inc.
Added
(to present) 2025 Member of the Board of Directors who is a member of the Audit and Supervisory Committee of TMC (to present) (important concurrent duties) Chairman and Representative Director of Ares Management Asia Japan KK. (to present) Outside Audit and Supervisory Board Member of TBS HOLDINGS, INC.
Removed
The terms of office of the members of the board of directors commenced at the conclusion of the Ordinary General Shareholders’ Meeting held on June 18, 2024 and will expire at the conclusion of the Ordinary General Shareholders’ Meeting for fiscal 2025. 3. The terms of office of Mr. Takeshi Shirane, Mr. Katsuyuki Ogura, and Ms.
Added
Shigeru Hayakawa and Simon Humphries, each a Member of the Board of Directors, Ikuro Sugawara, Sir Philip Craven, and Emi Osono, each an Outside Member of the Board of Directors, Takeshi Shirane, Masahide Yasuda and Katsuyuki Ogura, each a full-time Audit & Supervisory Board Member, and George Olcott, Catherine O’Connell and Hiromi Osada, each an Outside Audit & 118 Supervisory Board Member, retired from their respective positions at the conclusion of the 121st Ordinary General Shareholders’ Meeting.
Removed
Catherine O’Connell, who are all Audit & Supervisory Board Members, commenced at the conclusion of the Ordinary General Shareholders’ Meeting held on June 14, 2023 and will expire at the conclusion of the Ordinary General Shareholders’ Meeting for fiscal 2027. 4. The terms of office of Mr. Masahide Yasuda and Mr.
Added
None of the persons listed above was selected as a member of Board of Directors, Audit & Supervisory Board Member, Audit and Supervisory Committee member or member of senior management pursuant to an arrangement or understanding with Toyota’s major shareholders, customers, suppliers or others. 6.B COMPENSATION Decision Making Policy and Process Toyota believes that it is critical to appoint individuals who practice “product-centered and region-centered management” and contribute to decision-making aimed at sustainable growth into the future based on the “Toyota Philosophy.” Moreover, these individuals should be able to play a significant role in transforming Toyota into a mobility company based on trust and friendship and internal two-way interactive teamwork, while working towards the solution of environmental issues, including climate change, as well as social challenges related to Toyota Motor Corporation and its value chain.
Removed
George Olcott, who are both Audit & Supervisory Board Members, commenced at the conclusion of the Ordinary General Shareholders’ Meeting held on June 15, 2022 and will expire at the conclusion of the Ordinary General Shareholders’ Meeting for fiscal 2026. 5. The terms of office of Ms.
Added
Toyota became a company with an audit and supervisory committee based on a resolution adopted at the 121st Annual General Meeting of Shareholders held on June 12, 2025.
Removed
Hiromi Osada commenced at the conclusion of the Ordinary General Shareholders’ Meeting held on June 18, 2024 and will expire at the conclusion of the Ordinary General Shareholders’ Meeting for fiscal 2028.
Added
By resolution of the Board of Directors held on the same day, changes were made to the policy regarding the determination of remuneration for each member of the Board of Directors prior to the transition to a company with an audit and supervisory committee, including specifying that the policy applies to Board of Directors (excluding those who are Audit and Supervisory Committee members) and other modifications.
Removed
None of the persons listed above was selected as a member of board of directors, audit & supervisory board member or member of senior management pursuant to an arrangement or understanding with Toyota’s major shareholders, customers, suppliers or others. Set forth below is a brief summary of Toyota’s substitute audit & supervisory board member.
Added
However, there were no substantive changes to the policy before and after the transition to a company with an audit and supervisory committee. The Board of Directors decides by resolution the policy for determining remuneration for and other payments to each member of the Board of Directors (excluding those who are Audit and Supervisory Committee members).
Removed
As a result, this remuneration is not readily impacted by business performance, helping to ensure independence from management.

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Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

11 edited+0 added−5 removed4 unchanged
Biggest changeIn conjunction with the stock split, in accordance with Article 184, Paragraph 2 of the Companies Act, Toyota amended its articles of incorporation to increase the total number of shares of common stock which Toyota is authorized to issue from 10,000,000,000 to 50,000,000,000 on October 1, 2021, the effective date of the stock split. 7.B RELATED PARTY TRANSACTIONS Business Relationships Toyota purchases materials, supplies and services, among others, from numerous suppliers throughout the world in the ordinary course of business, including Toyota’s associates and joint ventures accounted for by the equity method and those firms with which certain members of Toyota’s board of directors are affiliated.
Biggest changeToyota knows of no arrangements the operation of which may at a later time result in a change of control. 7.B RELATED PARTY TRANSACTIONS Business Relationships Toyota purchases materials, supplies and services, among others, from numerous suppliers throughout the world in the ordinary course of business, including Toyota’s associates and joint ventures accounted for by the equity method and those firms with which certain members of Toyota’s Board of Directors are affiliated.
A similar report must be filed, with certain exceptions, if the percentage of shares held by a holder, solely or jointly, of more than 5% of the total issued shares of a company increases or decreases by 1% or more, or if any change to a material matter set forth in any previously filed reports occurs. 119 Table of Contents Based on information known to Toyota or that can be ascertained from public filings, the following table sets forth the beneficial ownership of holders of 5% or more of Toyota’s common stock as of the most recent practicable date.
A similar report must be filed, with certain exceptions, if the percentage of shares held by a holder, solely or jointly, of more than 5% of the total issued shares of a company increases or decreases by 1% or more, or if any change to a material matter set forth in any previously filed reports occurs. 130 Based on information known to Toyota or that can be ascertained from public filings, the following table sets forth the beneficial ownership of holders of 5% or more of Toyota’s common stock as of the most recent practicable date.
Loans Toyota regularly has trade accounts and other receivables by, and accounts payable to, Toyota’s associates and joint ventures accounted for by the equity method and firms with which certain members of Toyota’s board 120 Table of Contents of directors are affiliated.
Loans Toyota regularly has trade accounts and other receivables by, and accounts payable to, Toyota’s associates and joint ventures accounted for by the equity method and firms with which certain members of Toyota’s Board of Directors are affiliated.
Toyota purchased materials, supplies and services, among others, from these associates and joint ventures in the amount of ¥12,501.8 billion in fiscal 2024. Toyota also sells its products and services, among others, to Toyota’s associates and joint ventures accounted for by the equity method and firms with which certain members of Toyota’s board of directors are affiliated.
Toyota purchased materials, supplies and services, among others, from these associates and joint ventures in the amount of ¥12,972.7 billion in fiscal 2025. Toyota also sells its products and services, among others, to Toyota’s associates and joint ventures accounted for by the equity method and firms with which certain members of Toyota’s Board of Directors are affiliated.
According to Toyota’s register of shareholders, as of March 31, 2024, there were 947,533 holders of common stock of record worldwide. As of March 31, 2024, there were 528 record holders of Toyota’s common stock with addresses in the United States, whose shareholdings represented approximately 11.1% of the issued common stock on that date.
According to Toyota’s register of shareholders, as of March 31, 2025, there were 1,184,935 holders of common stock of record worldwide. As of March 31, 2025, there were 563 record holders of Toyota’s common stock with addresses in the United States, whose shareholdings represented approximately 11.1% of the issued common stock on that date.
Toyota sold products and services, among others, to these associates and joint ventures in the amount of ¥3,799.2 billion in fiscal 2024. See note 32 of Toyota’s consolidated financial statements for additional information regarding Toyota’s investments in and transactions with associates and joint ventures.
Toyota sold products and services, among others, to these associates and joint ventures in the amount of ¥4,042.6 billion in fiscal 2025. See note 32 of Toyota’s consolidated financial statements for additional information regarding Toyota’s investments in and transactions with associates and joint ventures.
Toyota had outstanding trade accounts and other receivables by these associates and joint ventures in the amount of ¥609.8 billion as of March 31, 2024. Toyota had outstanding trade accounts and other payables to these associates and joint ventures in the amount of ¥1,432.8 billion as of March 31, 2024.
Toyota had outstanding trade accounts and other receivables by these associates and joint ventures in the amount of ¥545.6 billion as of March 31, 2025. Toyota had outstanding trade accounts and other payables to these associates and joint ventures in the amount of ¥1,584.7 billion as of March 31, 2025.
Name of Beneficial Owner Number of Shares of Common Stock (in thousands) Percentage of Outstanding Voting Shares of Common Stock Toyota Industries Corporation 1,192,331 8.87 According to The Bank of New York Mellon, depositary for Toyota’s ADSs (the “Depositary”), as of March 31, 2024, 321,674,315 shares of Toyota’s common stock were held in the form of ADSs and there were 1,727 ADS holders of record and 635,135 beneficial owners in the United States.
Name of Beneficial Owner Number of Shares of Common Stock (in thousands) Percentage of Outstanding Voting Shares of Common Stock Toyota Industries Corporation 1,192,331 9.16 According to The Bank of New York Mellon, depositary for Toyota’s ADSs (the “Depositary”), as of March 31, 2025, 335,787,795 shares of Toyota’s common stock were held in the form of ADSs and there were 1,681 ADS holders of record and 750,662 beneficial owners in the United States.
As of March 31, 2024, an aggregate amount of ¥101.8 billion in loans was outstanding to its associates and joint ventures accounted for by the equity method. Toyota believes that each of these loans was entered into in the ordinary course of business.
As of March 31, 2025, an aggregate amount of ¥71.0 billion in 131 loans was outstanding to its associates and joint ventures accounted for by the equity method. Toyota believes that each of these loans was entered into in the ordinary course of business. 7.C INTERESTS OF EXPERTS AND COUNSEL Not applicable.
ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS 7.A MAJOR SHAREHOLDERS As of March 31, 2024, 16,314,987,460 shares of Toyota’s common stock (of which 2,840,815,433 shares were treasury stock and 13,474,172,027 shares were outstanding) were issued.
ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS 7.A MAJOR SHAREHOLDERS As of March 31, 2025, 15,794,987,460 shares of Toyota’s common stock (of which 2,746,057,686 shares were treasury stock and 13,048,929,774 shares were outstanding) were issued.
Toyota cancelled all of the First Series Model AA Class Shares on April 3, 2021, and as such, there are no holders of First Series Model AA Class Shares. To the extent known to Toyota, Toyota is not owned or controlled, directly or indirectly, by another corporation, any foreign government or any natural or legal person.
To the extent known to Toyota, Toyota is not owned or controlled, directly or indirectly, by another corporation, any foreign government or any natural or legal person.
Removed
Toyota resolved at its board of directors meeting held on December 14, 2020 to exercise Toyota’s cash call option to acquire all outstanding Model AA Class Shares and, subject to such acquisition, to cancel all Model AA Class Shares pursuant to the Companies Act.
Removed
Toyota completed the acquisition of all outstanding Model AA Class Shares on April 2, 2021 and cancelled them on April 3, 2021.
Removed
Toyota knows of no arrangements the operation of which may at a later time result in a change of control. Toyota resolved at its board of directors meeting held on May 12, 2021 to split each share of common stock of Toyota as of September 30, 2021, the record date, into five shares, effective October 1, 2021.
Removed
Toyota decided to do so in order to create an environment in which Toyota shares are more accessible to a broader base of investors by reducing the price per investment unit.
Removed
Other For the year ended March 31, 2024, TMC acquired shares of TMC’s consolidated subsidiary, Woven by Toyota, Inc., from Akio Toyoda, Chairman of the Board of Directors of TMC, for a total acquisition price of ¥5,169 million. 7.C INTERESTS OF EXPERTS AND COUNSEL Not applicable.

Other TM 10-K year-over-year comparisons