Toyota

Towards the end oI the nineteenth century, Sakichi Toyoda invented Japan's Iirst power loom,
revolutionising the country's textile industry. January 1918 saw him create the Toyoda Spinning
and Weaving Company, and with the help oI his son, Kiichiro Toyoda, Sakichi IulIilled his
liIelong dream oI building an automatic loom in 1924. The establishment oI Toyoda Automatic
Loom Works Iollowed in 1926. Kiichiro was also an innovator, and visits he made to Europe and
the USA in the 1920s introduced him to the automotive industry. With the 100,000 that Sakichi
Toyoda received Ior selling the patent rights oI his automatic loom, Kiichiro laid the Ioundations
oI Toyota Motor Corporation, which was established in 1937. One oI the greatest legacies leIt by
Kiichiro Toyoda, apart Irom TMC itselI, is the Toyota Production System. Kiichiro's "just- in-
time" philosophy - producing only precise quantities oI already ordered items with the absolute
minimum oI waste - was a key Iactor in the system's development. Progressively, the Toyota
Production System began to be adopted by the automotive industry across the world.

Rising Irom the ashes oI industrial upheaval in post-war Japan, Toyota has become the largest
vehicle manuIacturer in Japan with over 40 market share. Toyota began to make inroads into
Ioreign markets in the late 1950s. The Iirst Crown models arrived in the USA in 1957, and by
1965, with models such as the Corolla, Toyota began to build its reputation and sales to rival
those oI domestic producers. The Iirst Toyota imported into Europe was via Denmark in 1963.
Toyota has con-tinued to grow in Europe's sophisticated and complex market, and in 2000 the
company delivered its ten millionth car to a customer in Germany. In Iact, growth is currently
one oI the main words in Toyota's European vocabulary, and the com-pany plans to reach annual
sales oI 800,000 in Europe by 2005. Toyota is number one Ior customer satisIaction in the
majority oI European countries and has built an excellent reputation across Europe Ior reliability
and customer service. This enviable reputation, along with the support oI a network oI more than
25 distributors and 3,500 sales outlets, are important Iactors in supporting Toyota's European
sales growth in the coming years.
SeL up ln 1993 Lhe C21 pro[ecL (C for global and 21 for Lhe 21sL cenLury) ldenLlfled Lhe
envlronmenL and conservaLlon of resources as Lhe lssues LhaL mosL needed addresslng by auLomakers aL
Lhe beglnnlng of Lhe new cenLury 1he fear was LhaL wlLhouL cruclal Lechnologlcal breakLhroughs Lhe
auLomoblle would have no fuLure
1he Leams goal was an envlronmenLal car wlLhouL sacrlflclng drlvlng comforL easlly seaLlng four
adulLs fully equlpped wlLh power feaLures and aL leasL a 30 boosL ln fuel economy
Powever when Lhe proLoLype was flnlshed LhenLxecuLlve vlce resldenL Aklhlro Wada and Lhe heads
of Lhe Lechnlcal dlvlslons were noL saLlsfled 1he concepL ls all rlghL Lhey sald 8uL a 30 lncrease ln
fuel economy ls noL enough ?our goals for Lhe car of Lhe 21sL cenLury are Loo low lf LhaLs Lhe besL you
can do Lhe ro[ecL should be canceled
1he only way pasL Lhls llmlLlng facLor was Lhe hybrld car sald Chlef Lnglneer 1akeshl uchlyamada So
we declded Lo push ahead wlLh Lhe commerclallzaLlon of Lhe hybrld 1hls was no easy Lask 1oyoLa had
no experlence wlLh Lhe needed Lechnology and yeL was deLermlned Lo develop everyLhlng lnhouse
1urnlng Lhls ldea lnLo a commerclally vlable vehlcle requlred greaL lnvesLmenLs ln Llme and labor We
puL sweaL and blood lnLo lLs deslgn and producLlon Lo geL envlable quallLy sald PldeLoshl kusuml from
LlecLrlcal LlecLronlcs roducLlon Lnglneerlng ulvlslon CreaLlvlLy challenge and courage
2
helped
1oyoLa Lo move forward overrlde hlgh LargeLs and acLuallze unproven Lechnologles
The "all-out efforts" were a success, and in October 1997 Toyota introduced the Prius, the
world's first mass-produced hybrid car at the Toyota Motor Show. At this media unveiling,
Toyota Motor Corporation's (TMC) then-President, Hiroshi Okuda set the tone: "Prius is
Toyota's response to the challenge of change . . . With the launch of the Prius and its
successors, Toyota is determined to extend the horizons of technological innovation, meet
society's needs and take the lead in the race to realize the car that encapsulates the dreams
and issues of the next century."
Volkswagen
LiferoIIy, fhe word "voIkswogen" meons "peopIes cor." In 0ermony, fhe ideo of o peopIes
cor wosnf exocfIy o new one. 8efore fhe I930s, fhere hod been mony efforfs fo creofe
simpIe cors fhof everyone couId offord, buf none mef wifh profound success. AImosf oII
cors before I930, even if fhey were designed fo be simpIe enough for fhe overoge person,
ended up cosfing more fhon fhe overoge workers yeorIy woge.
MeonwhiIe, fhe yeor is I930, ond Ferdinond Porsche hod jusf sef up on oufomofive design
compony, which become known os fhe Porsche 8uro. The compony pofenfed o sophisficofed
independenf fronf suspension sysfem, which consisfed of fronsverseIy mounfed forsion
bors connecfed fo fwo froiIing orms on eoch side. Af fhe fime, fhis wos Iighfer fhon mosf
ofher common fypes of suspension. In I93I, o 0ermon moforcycIe compony, Zundopp, osked
Porsche if he couId design o suifobIe cor for fhem.
Porsche come up wifh o sfreomIined Z door sedon, which hod Iines simiIor fo fhe 8eefIe. If wos
designofed fhe Type IZ. Zundopp wonfed fo puf in o I.Z Iifer rodioI engine from one of fheir
moforcycIes...fhis wos fhe end of fhe Iine for fhis design, os if didnf moke if ony furfher.
Porsche fhen designed o cor for MSU in I933 fhof wos known os fhe Type 3Z. This cor Iooked
even more simiIor fo fhe upcoming IdF Wogen fhon fhe Type IZ did. This cor Iooked simiIor fo fhe
Tofro Vb70, ond shored mony mechonicoI simiIorifies. Affer WorId Wor II, fhe VoIkswogen compony
poid Tofro for compensofion, since Tofro beIieved ifs fechnoIogy ond design wos pirofed in
deveIopmenf of fhe IdF Wogen. EvenfouIIy, MSU dropped fhe Type 3Z projecf.

Industry introduction
The automotive industry designs, develops, manuIactures, markets, and sells motor vehicles, and
is one oI the world's most important economic sectors by revenue.
The term automotive industry usually does not include industries dedicated to automobiles aIter
delivery to the customer, such as repair shops and motor Iuel Iilling stations.
History
The Iirst practical automobile with a petrol engine was built by Karl Benz in 1885 in Mannheim,
Germany. Benz was granted a patent Ior his automobile on 29 January 1886, and began the Iirst
production oI automobiles in 1888, aIter Bertha Benz, his wiIe, had proved with the Iirst long-
distance trip in August 1888 (Irom Mannheim to PIorzheim and back) that the horseless coach
was absolutely suitable Ior daily use. Since 2008 a Bertha Benz Memorial Route commemorates
this event.
Soon aIter, Gottlieb Daimler and Wilhelm Maybach in Stuttgart in 1889 designed a vehicle Irom
scratch to be an automobile, rather than a horse-drawn carriage Iitted with an engine. They also
are usually credited as inventors oI the Iirst motorcycle, the Daimler Reitwagen, in 1885,
but Italy's Enrico Bernardi, oI the University oI Padua, in 1882, patented a
0.024horsepower (17.9 W) 122 cc (7.4 cu in) one-cylinder petrol motor, Iitting it into his
son's tricycle, making it at least a candidate Ior the Iirst automobile, and Iirst
motorcycle;Bernardi enlarged the tricycle in 1892 to carry two adults.
Until 2005, the U.S.A. was leading the world in total automobile production. In 1929 beIore the
Great Depression, the world had 32,028,500 automobiles in use, and the US automobile industry
produced over 90 oI the automobiles in the world, ie 28,551,500. And over one halI the cars in
Ioreign lands were oI U.S. make. At that time the U.S. had one car per 4.87 persons. In 2006,
Japan narrowly passed the U.S. in production and held this rank until 2008. In 2009, China took
the top spot with 13.78 million units produced. With 18.3 million units produced 2010, China
produced nearly twice the amount oI second place Japan (9.6 million units), the U.S. trailed in
place 3 with 7.8 million units.
Economy
About 250 million vehicles are in use in the United States. Around the world, there were about
806 million cars and light trucks on the road in 2007, consuming over 260 billion US gallons
(980,000,000 m
3
) oI gasoline and diesel Iuel yearly. The automobile is a primary mode oI
transportation Ior many developed economies. The Detroit branch oI Boston Consulting
Group predicts that, by 2014, one-third oI world demand will be in the Iour BRIC markets
(Brazil, Russia, India and China). Other potentially powerIul automotive markets are Iran and
Indonesia. Emerging auto markets already buy more cars than established markets. According to
a J.D. Power study, emerging markets accounted Ior 51 percent oI the global light-vehicle sales
in 2010. The study expects this trend to accelerate.





By year
Global production oI motorvehicles
(cars and commercial vehicles)
Year Production Change
1997 54,434,000
1998 52,987,000 -2.7
1999 56,258,892 6.2
2000 58,374,162 3.8
2001 56,304,925 -3.5
2002 58,994,318 4.8
2003 60,663,225 2.8
2004 64,496,220 6.3
2005 66,482,439 3.1
2006 69,222,975 4.1
2007 73,266,061 5.8
2008 70,520,493 -3.7
2009 61,791,868 -12.4
2010 77,857,705 26.0

Company relationships
It is common Ior automobile manuIacturers to hold stakes in other automobile manuIacturers.
These ownerships can be explored under the detail Ior the individual companies.
Notable current relationships include:
Daimler AG holds a 20 stake in Eicher Motors, a 10.0 stake in KAMAZ, a 10 stake
in Tesla Motors, a 6.75 stake in Tata Motors and a 3.1 in the Renault-Nissan
Motorsalliance. They are in the process oI selling back their 40 stake (11 remaining)
in McLaren Group. This process will be Iinalized in 2011.
DongIeng Motor Corporation is involved in joint ventures with several companies around the
world, including: Honda (Japan), Hyundai (South Korea), Nissan (Japan), Nissan
Diesel(Sweden), and PSA Peugeot Citroen (France).
Fiat holds a 90 stake in Ferrari and a 53.5 stake in Chrysler.
Ford Motor Company holds a 3 stake in Mazda and an 8.3 share in Aston Martin.
Geely Automobile holds a 23 stake in Manganese Bronze Holdings.
General Motors and Shanghai Automotive Industry Corporation (SAIC) have two joint
ventures in Shanghai General Motors and SAIC-GM-Wuling Automobile.
Hyundai Kia Automotive Group holds a 38.67 stake in Kia Motors, down Irom the 51
that it acquired in 1998.
MAN SE holds a 17.01 voting stake in Scania.
Porsche Automobil Holding SE has a 50.74 stake in Volkswagen Group. Due to liquidity
problems, Volkswagen Group is now in the process oI acquiring Porsche.
Renault and Nissan Motors have an alliance involving two global companies linked by cross-
shareholding, with Renault holding 44.3 oI Nissan shares, and Nissan holding 15 oI
(non-voting) Renault shares. The alliance holds a 3.1 share in Daimler AG.
Renault holds a 25 stake in AvtoVAZ and 20.5 oI the voting stakes in Volvo Group.
Toyota holds a 51 stake in Daihatsu, and 16.5 in Fuji Heavy Industries, parent company
oI Subaru.
Volkswagen Group holds a 37.73 stake in Scania (68.6 voting rights), and a 53.7 stake
in MAN SE (55.9 voting rights). Volkswagen is integrating Scania, MAN and its own
truck division into one division.
Volkswagen Group has a 49.9 stake in Porsche AG. Volkswagen is in the process oI
acquiring Porsche, which will be completed in late 2011.
Volkswagen Group has a 19.9 stake in Suzuki, and Suzuki has a 5 stake in Volkswagen.

FUTURE OUTLOOK :

The Iuture however looks encouraging Ior the Iorging industry in terms oI the expected surge in
global demand. As a result oI liberalization, more MNCs have entered the domestic automobile
market. This has opened up more business opportunities Ior the Iorging industry.

The Iollowing table would give a Iair idea oI the Iuture estimated demand(both domestic and
global)Ior the auto component industry(oI which the Iorging industry is an important segment)
TABLE-A. ESTIMATED DEMAND FOR THE FORGING INDUSTRY BY 2015.

Particulars :
1.Size oI Global Auto Component Industry : US$ 1.2 trillion.
2.Current global purchases oI components by international vehicle manuIacturers: US$ 45
billion
3.Estimated export oI Auto components Irom low cost countries (including India) in the next 10
years : US$ 225 billion
4.Estimated share oI exports Irom the indian auto component industry out oI(3)above : 10.
5.Targetted exports oI auto component industry industry in absolute terms by 2015 : US$25
billion
6.Current exports oI Indian auto component industry : US$ 1.8 billion
7. Current Estimated exports oI Indian Iorging industry : US$ 360 million
8. Projected exports oI Forging industry by 2015 (15 oI auto component exports) : US$ 3.75
billion


Today, the passenger car segment has emerged as an important customer Ior the Indian Iorging
industry. The Ilow oI orders is only a Iraction oI the industry`s investment in this speciIic area. It
is expected that the Iuture and well-being will depend mainly on the the steady growth oI the
automotive industry. The current year is showing signs oI an economic recovery in many other
sectors oI the economy. The recovery, particularly in the automobile industry (user industry Ior
the Iorging industry) has been stronger than expected, but in the next year it is Ielt it may not
grow to a great extent.