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Annual Report 2017｜Long-Term Strategy

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Annual Report 2017｜Long-Term Strategy Table of Contents Message from the President Long-term Strategy At a Glance Initiatives for Financial Information Non-Automotive Business/Corporate History Sustainable Growth Information and Stock Information Long-term Strategy Electrifi cation Information Intelligence The Changing Business Environment and the Expansion of Mobility Value The current pace and scale of structural change in In this time of immense change, Toyota is taking Toyota aims to provide value related to social infra- move about freely and enjoyably and by providing society and industry are unprecedented. Values and a brand new approach, imagining the world in 2030 structure by achieving zero life cycle CO2 emissions services optimized to individual lifestyles. lifestyles are diversifying, while environmental prob- in order to create value propositions from a long-term from its vehicles to help create a sustainable world, Going forward, Toyota will create a sustainable lems and a wide range of social issues, such as perspective. eliminating causalities from traffi c accidents, and future mobility society by working hand-in-hand urbanization, are growing more pronounced. At the Today, Toyota provides customers with the value of improving transportation effi ciency through the com- with partners across industry lines to provide broad- same time, innovation is driving rapid technological mobility through cars. Going forward, in addition to bined transport of people and things. ranging value that exceeds customer expectations. development in such areas as information, intelli- evolving this value as provided through cars, we plan We seek to expand the value we provide into the gence, the Internet of Things (IoT), and robotics. to expand it in the directions of social infrastructure area of personal living by working to help all people and personal living. Business Environment Changes The Expansion of Mobility Value Individual desires/ Societal demands Lifestyle changes Evolution through cars (mobility) Environmental problems Ultra-efficient Helping all people Social innovation transportation of people move about freely Urbanization and things Sharing and enjoyably Contributing to Combined transport of More entertaining Customization to the creation of people and things Personal mobility transportation spaces suit individual sustainable society lifestyles Zero life cycle CO2 Fully automated Personal concierge Technological driving innovation Big data/AI Intelligence Zero causalities from Creating opportunities traffic accidents for outings IoT Social Mobility Personal infrastructure today living Alleviating traffic Robotics Augmenting body congestion/Utilizing Health support functions transportation data Structural changes in industry 5 TOYOTA Annual Report 2017 Table of Contents Message from the President Long-term Strategy At a Glance Initiatives for Financial Information Non-Automotive Business/Corporate History Sustainable Growth Information and Stock Information Long-term Strategy Electrifi cation Information Intelligence Focused on the Mobility of the Future Since the birth of the automobile in the 18th centu- The technologies driving the rapid changes in the series, or a Land Cruiser, clearly defi ning the role and Making Ever-better Cars and Our Strategic ry, the mobility of people and things has increased business environment surrounding cars, such as key characteristics of each. By doing so, we provide Shift toward Electrifi cation, Information, dramatically. Today, it is possible to provide conve- electrifi cation, connected systems, and AI, have the value in the form of uniquely Toyota cars that will be and Intelligence Technologies nient transportation to virtually anywhere at any time. potential to provide never-before-seen value. They cherished and appreciated by customers for years Based on the Toyota The development of mobility has underpinned eco- are also driving the provision of social value by, for and years. At the same time, by making a strategic Global Vision, announced nomic growth and the development of society and example, helping to eliminate traffi c accidents and shift toward electrifi cation, information, and intelli- in March 2011, Toyota culture. The heart of this evolution has been the environmental burden. Going forward, the costs gence to build new business models, we are strives to implement a steady improvement of vehicle performance, safety, associated with these technologies, such as those of expanding our range of business. positive cycle of making and convenience. enhancing functionality to meet needs related to In these ways, we will not only continue to evolve ever-better cars that Now, changes driven by innovation in automated environmental regulations, automated driving tech- our existing car manufacturing business, but expand exceed customer expec- driving technologies that employ artifi cial intelligence nology, and connected technologies, may signifi cant- the scope of innovation to encompass social plat- tations, enriching lives of (AI), connected car technologies, robotics, and other ly impact our businesses. However, mobility services forms that meet society’s needs and technological Shigeki Terashi communities, being areas are on the verge of linking cars, people, and and connected services that utilize such technologies platforms, such as AI, that extend beyond cars. By Executive Vice President, rewarded with the smiles social infrastructure in new ways, transforming indus- also present opportunities to create new revenue doing so, we aim to provide broad-ranging value that Member of the Board of Directors of customers and commu- try, society, and the very ways we live. models. Based on this understanding, we believe exceeds customer expectations as we work to cre- nities, and thus reinforcing We believe that our customers today greatly enjoy that Toyota must now endeavor to both make ever- ate the mobility society of the future. its stable base of business in order to grow sustain- car ownership—they feel attached to their cars and better cars in order to sustain and enhance the auto- There is a limit to what Toyota can do to provide ably in concert with society. As it faces the greatest appreciate car design and the fun of driving. However, mobile manufacturing business, its current mainstay, such future value. To blaze the trail toward a new changes to the automobile in a century, Toyota’s with environmental and resource-related problems and shift to new business models for the future. mobility society, we must fi nd partners who share our long-term strategy is to advance management based growing more severe, cars are increasingly being seen To make ever-better cars, we are striving to aspirations and will inspire us to continue pushing on its vision of the future mobility society of 2030. as emblematic of pollution and the waste of energy enhance the specifi c appeal of each type of car, forward while cooperating and competing with play- and resources. whether it be a Lexus, part of our GR sports car ers in other industries. Toyota’s Goals Development Aimed at both Axes of Making Ever-better Cars and Shifting to New Business Models Making Ever-better Cars Strategic Shift toward Electrifi cation, Information, and Intelligence to Build New Business Models Toyota Global Vision Safety and peace of mind Safety and Reinforcing new Ever-better cars peace of (Creative, advanced Intelligence value creation mind Waku-doki Customers’ technologies) Beloved cars capabilities (excitement and Automated driving exhilaration that smiles Enhancing cars’ AI wows you) appeal Developing Toyota Sustainable People by taking on growth Environmental the future (The fun of driving) sustainability Electrifi cation Information Connected EV/FCV Waku-doki technology Environmental (HV/PHV) (excitement and Strengthening true Big data (More-than-adequate QDR*) sustainability exhilaration that Toyota competitiveness to Steadily strengthening wows you) today lay a foundation for our foundation steady growth * QDR: Quality, durability, and reliability 6 TOYOTA Annual Report 2017 Table of Contents Message from the President Long-term Strategy At a Glance Initiatives for Financial Information Non-Automotive Business/Corporate History Sustainable Growth Information and Stock Information Long-term Strategy Electrifi cation Information Intelligence Focused on the Mobility of the Future Eco-car Strategy: Electrifi cation and information, and has created what it calls Toyota believes that safe, fun automated driving hands-on experience), because the changes the Toyota is exploring all available options in powertrain Connected Strategy. The three pillars of this strategy technologies will expand freedom of movement for company faces require new ways of thinking development. We believe that we can build a highly are as follows. 1. Connect all cars to build a data col- all, bringing cars and people even closer together, and acting energy effi cient mobility society by allowing govern- lection platform, 2. Utilize big data to revolutionize such that cars will continue to be loved by people. • Reduce the time and effort consumed by cross- ments and markets to select the cars best suited to Toyota’s business, and 3. Collaborate with partners functional coordination and establish work pro- regional energy and infrastructure conditions and in various other industries and IT companies to pro- More details Electrifi cation, information and intelligence, p. 9–17 cesses that allow us to focus on making allowing customers to choose the cars with the spe- duce new mobility
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