THE STORY

● Sakichi Toyoda
1891 : First Patent on Loom
1894 :Profitable Loom Company was formed
1897: First Automatic loom was developed

● Recession
1910 : Sakichi Toyoda forced to resign
1918 : New Company, Toyoda Spinning and Weaving formed
1929 : Sold all the rights and passed on to Kiichiro Toyoda for the production of automobile

● Kiichiro Toyoda
1930 : Started the production of the first japanese car for the masses
1933 : Establishment of the automobile department and development of the first engine
1935 : Model A1 First prototype .
1937 : Toyota Motor Corporation was formed
THE TOYOTA WAY

● Base your management decisions on a long term philosophy even at the cost of short term goals
● Create a continuous process to bring out the problems to the surface.
● Use “Pull” system to avoid overproduction.
● Level out the workload (heijunka). (“Work like a tortoise, not the hare”).
● Build a culture of stopping to fix problems, to get quality right at the first time.
● Standardized tasks are the foundation for continuous improvements and employee empowerment.
● Use Visual Control so no problems are hidden.
● Use only reliable, thoroughly tested technology that servers your people and process.
● Grow leaders who thoroughly understands the work, live philosophy and teach it to others.
● Develop exceptional people and teams who follow your company’s philosophy.
● Respect your extended network of partners and suppliers by challenging them and helping them improve.
● Go to gemba and see for yourself to thoroughly understand the situation (Genchi Genbutsu).
● Make decision slowly by consensus (use cross functional teams), thoroughly considering all options;
implement decisions rapidly.
● Become a learning organization through relentless reflection (hansei) and continuous improvements
(Kaizen)
TOYOTA PRODUCTION SYSTEM (TPS)

The Lean production system is also known as the Toyota

Production System (TPS). It is an integrated
socio-technical system developed by Toyota (automotive
manufacturer) to efficiently organize manufacturing and
logistics, including the interaction with suppliers and
customers, to minimize cost and waste.

The system is credited to Taiichi Ohno, and actually,

most agile methodologies, used especially for software
production nowadays, have been inspired by the TPS.
THE TOYOPET PROBLEM

● TOYOPET, A Successful car for

the Japanese Roads

● Enormous opportunity was

found in America Toyopet Master

● Failed miserably in the

American markets due to
performance issues

● Birth of the Corona

Corona ‘65
GLOBAL EXPANSION

● Export market development

● Large-scale manufacturing
in other countries

● Full-scale Globalisation
THE GREAT TOYOTA RECALL
Toyota payed $1.2 billion in a
deferred prosecution
agreement with DOJ during
2009-11, as a Toyota vehicle
was involved in an accident
caused by uncontrollable
acceleration (floor mat
problems associated with
sticking accelerator)
The business integrity and
quality of this iconic
company is questioned. It
is vilified by the American
press, the government and
its consumers
Management undergoes the
“Corporate denial syndrome”.
The company’s pride over
high quality leads to disbelief
in errors and
anomalies,which means that
anything less than perfection
is seen as shameful and
embarrassing
INTERNATIONAL BUSINESS STRATEGY

● Global Standardization Strategy

● Localization Strategy

● Transnational Strategy

● International Strategy
Toyota Kirloskar Motor

Toyota Kirloskar Motor is the Indian subsidiary, in which Toyota Corp

hold equity of 89 per cent, while Kirloskar holds 11 per cent. Currently, it
is the fourth-largest car manufacturer of India in terms of market share,
ahead of Tata Motors and Honda cars.
Challenges of Toyota Kirloskar (2018-2019)

Increase in Vehicle cost Vehicle prices have shot up, hence the affordability of consumers is
affected. Demand for GST reduction levied on automobile/component
manufacturer.( 18% to 28% )

Shift to BS VI vehicular emission from BS IV from April

Revised Emission 2020.15-20% increase in rate of Toyotas’ diesel vehicles as the
Norms emission norms start kicking in.

Falling price of the rupee is affecting the Indian automobile

Exchange Rate
industry.
Depreciation
INDIAN SCENARIO?
● PRICE!

● PRICE!!

● PRICE!!!!!!!!!!!
INDIA BLITZ : THE FUTURE

TOYOTA - MARUTI SUZUKI DNA

● Toyota’s portfolio of the future will have a Maruti Suzuki DNA with close to half a dozen
new products
● Toyota acquires ability to come out frugal compact cars and Suzuki can benefit from
technological edge of Toyota in making hybrid and electric cars.
● Significantly redesigned and re-engineered Vitara Brezza, Hybrid versions of Baleno ,
Ciaz, etc will be launched
● All these Vehicles will be compatible with the upcoming security and pollution norms.
● Maruti Suzuki gets the tech edge in exchange for their market to toyota hence doubling
the outcomes of both the company