20-F: Toyota Reports Fiscal 2025 Earnings Decline Amid Strategic Mobility Transformation and Rising Costs

Sentiment:

Annual Report 18 June 2025 6:11 AM

Toyota Motor Corporation reported a 10.4% decrease in operating income and a 3.6% drop in net income for fiscal year 2025, despite a 6.5% increase in sales revenues, as the company continues its ambitious transformation into a mobility company with significant investments in electrification and advanced technologies.

Capital raiseToyota Motor Corporation plans to invest 706 billion JPY in shares of non-voting preferred stock of the Parent Company of Toyota Industries Offeror to partially fund the tender offer for Toyota Industries shares.Toyota Motor Corporation intends to conduct a tender offer for its own shares, offering to purchase a maximum of 1,192,331,020 shares held by Toyota Industries, following the successful completion of the Toyota Industries tender offer.

Worse than expectedOperating income decreased by 10.4% in fiscal 2025 compared to the prior fiscal year.Net income attributable to Toyota Motor Corporation decreased by 3.6% in fiscal 2025.Consolidated vehicle unit sales slightly decreased by 0.86% in fiscal 2025.The outlook for fiscal 2026 projects a decrease in operating income and net income attributable to TMC.

Summary

Toyota's sales revenues for fiscal year 2025 increased by 6.5% to 48,036.7 billion JPY, primarily driven by favorable exchange rates and price revisions.
Operating income decreased by 10.4% to 4,795.5 billion JPY in fiscal 2025, largely due to increased expenses, including product-quality related costs and labor costs, and expenses related to Hino's certification issues.
Net income attributable to Toyota Motor Corporation declined by 3.6% to 4,765.0 billion JPY for fiscal 2025.
Consolidated vehicle unit sales slightly decreased by 0.86% to 9,362 thousand units in fiscal 2025, with declines in Japan, North America, and Europe, partially offset by increases in Asia and other markets.
The company recorded 281.14 billion JPY in costs and expenses related to Hino Motors' legacy certification issues in fiscal 2025.
Toyota is committed to achieving carbon neutrality by 2050, pursuing a multi-pathway strategy that includes significant investments in Battery Electric Vehicles (BEVs), Plug-in Hybrid Electric Vehicles (PHEVs), Fuel Cell Electric Vehicles (FCEVs), and hydrogen engines.
Key strategic initiatives include expanding the BEV lineup with plans to introduce ten new models by 2026 and aiming for 1.5 million Toyota and Lexus brand BEV unit sales annually by 2026.
Toyota plans to invest approximately 5 trillion JPY in BEV production, additional battery plants, and research and development expenses through 2030.
The Woven City project, a mobility test course, completed Phase 1 construction in October 2024, with demonstration tests scheduled to begin in Fall 2025 or thereafter.
The company announced a series of transactions to take Toyota Industries Corporation private, involving TMC's investment of 706 billion JPY in preferred stock and a subsequent tender offer for its own shares held by Toyota Industries.

Sentiment

Score: 5

Explanation: The sentiment is neutral to slightly negative. While the company demonstrates a strong long-term strategic vision and significant investments in future technologies (BEVs, hydrogen, Woven City), the current financial performance shows a decline in operating income and net income, coupled with a negative outlook for the next fiscal year. Significant costs from Hino certification issues and the impact of U.S. tariffs are notable headwinds. The strategic direction is positive for the long-term, but near-term financial challenges and operational issues temper overall sentiment.

Positives

Sales revenues increased by 6.5% to 48,036.7 billion JPY in fiscal 2025, driven by favorable exchange rates and price revisions.
Financial services operations saw strong growth, with sales revenues increasing by 28.7% to 4,437.8 billion JPY and operating income rising by 19.9% to 683.5 billion JPY, mainly due to increased loan balances and decreased valuation losses on interest rate swaps.
Toyota is making substantial strategic investments in future growth areas, including approximately 5 trillion JPY in BEV production, battery plants, and R&D through 2030.
The company is actively pursuing carbon neutrality with a diversified multi-pathway strategy, developing next-generation BEVs, advanced battery technologies (including all-solid-state batteries), and hydrogen fuel cell systems.
The establishment of the Hydrogen Factory in July 2023 and the BEV Factory (reorganized to BR BEV in April 2025) demonstrates a focused approach to electrification and new mobility solutions.
Woven City, a living laboratory for mobility, completed Phase 1 construction in October 2024, indicating progress in developing future mobility solutions and smart city integration.
Toyota's cost reduction efforts, including value engineering and manufacturing initiatives, contributed to offsetting some increases in operating costs.

Negatives

Operating income decreased by 10.4% to 4,795.5 billion JPY in fiscal 2025, primarily due to increased expenses and a significant unfavorable impact from changes in expenses and expense reduction efforts.
Net income attributable to Toyota Motor Corporation decreased by 3.6% to 4,765.0 billion JPY.
Consolidated vehicle unit sales slightly declined by 0.86% to 9,362 thousand units in fiscal 2025.
North America's operating income saw a substantial decrease of 78.5%, and Japan's operating income decreased by 9.6%.
The company recorded 281.14 billion JPY in costs and expenses related to Hino Motors' legacy certification issues in fiscal 2025.
The percentage of credit losses in financial services rose to 0.46% in fiscal 2025 from 0.40% in fiscal 2024, attributed to financial pressure on households due to inflation.
The future outlook for fiscal 2026 projects a decrease in operating income and net income attributable to TMC, mainly due to unfavorable exchange rates, soaring materials prices, U.S. tariffs, and investments in growth areas.

Risks

Intense competition in the worldwide automotive market, intensified by technological advances in CASE (Connected, Autonomous/Automated, Shared, Electric) technologies, could lead to lower vehicle unit sales and downward price pressure.
Volatility in demand for vehicles, influenced by economic, social, and political conditions, as well as factors impacting vehicle price or operating costs, may adversely affect financial performance.
Inability to timely develop and achieve market acceptance of new, innovative, and competitively priced products that meet rapidly changing customer demand, particularly for electrified vehicles, could result in lower market share and reduced sales volumes.
Failure to maintain and develop brand image and reputation due to insufficient compliance with laws and regulations, product quality issues (e.g., vehicle model certification issues at Hino, Daihatsu, and Toyota Motor Corporation), or perceived failures in sustainability efforts.
Reliance on a single or limited number of suppliers for critical parts, components, and raw materials, making the company vulnerable to supply disruptions, increased costs, or production delays due to geopolitical tensions, economic sanctions, or export controls.
Increased competition in the worldwide financial services industry may lead to decreased margins, and factors like declining vehicle sales, increased residual value risk, higher credit losses, and increased funding costs could adversely affect financial services operations.
Vulnerability of digital and information technology networks and systems to cyberattacks, computer viruses, data breaches, or service failures, which could disrupt operations, disclose sensitive data, interfere with vehicle functions, and lead to legal claims or regulatory penalties.
Exposure to risks associated with climate change, including physical risks (e.g., severe weather events impacting production/sales) and transition risks (e.g., changes in customer demand due to climate policies, increased costs for raw materials for electrified vehicles, failure to meet climate-related goals).
Fluctuations in currency exchange rates (particularly JPY, USD, EUR, AUD, CAD, GBP) and interest rates can materially affect revenues, operating income, and net income.
High prices of raw materials (steel, precious metals, non-ferrous alloys, plastic parts) could lead to higher production costs and negatively impact profitability if not fully passed on to customers.
A downturn in financial markets could adversely affect the company's ability to raise capital under favorable terms.
The automotive industry is subject to various laws, regulations, and governmental actions (e.g., vehicle safety, environmental protection, emissions, fuel economy, tariffs, trade barriers), which can result in significant compliance costs, legal proceedings, recalls, fines, or restrictions on business operations.
Potential negative outcomes from ongoing legal proceedings and government investigations (e.g., Takata airbag issues, diesel particulate filters class action, Hino certification issues, anti-bribery investigations) could adversely affect reputation, brand image, and financial condition.
Adverse effects from natural calamities, epidemics, political and economic instability, fuel shortages, interruptions in social infrastructure, wars, terrorism, and labor strikes on production, sales, and overall business operations.
The company's ability to secure, retain, and develop talented, diverse employees is critical, and intense competition for such talent could reduce competitiveness.

Future Outlook

For fiscal year 2026, Toyota expects sales revenues to increase due to higher vehicle unit sales, partially offset by unfavorable exchange rates. However, operating income is projected to decrease, primarily due to unfavorable exchange rates, soaring materials prices, the impact of U.S. tariffs (estimated negative impact of 180.0 billion JPY for April-May 2025), and investments in human resources and growth areas. These negative impacts are expected to be partially offset by cost reduction efforts and expansion of value chain profits. Consequently, income before income taxes and net income attributable to Toyota Motor Corporation are also expected to decrease in fiscal 2026. The outlook assumes average exchange rates of 145 JPY to the U.S. dollar and 160 JPY to the euro.

Management Comments

"We are now striving to transform ourselves into a mobility company."
"Our new management structure's theme is inheritance and evolution. The most important value we have cultivated is 'Let's make ever-better cars!'"
"We are fully committed to achieving carbon neutrality in 2050 over the entire life cycle of our vehicles."
"We have adopted a multi-pathway strategy, which allows transitions that align with actual energy situations."
"The cars of the future will become more connected to society as they become more electrified, intelligent, and diversified."
"The most important message we want to convey through our mobility concept is that mobility lies beyond the evolution of the car."
"We want to ensure that automobiles continue to serve as a form of mobility that benefits society and brings smiles to people around the world well into the future."
"In a time when there is no right answer, we will build a corporate culture in which we can say 'thank you' to each other and aim to be a Toyota Group that is needed in the future, where diverse human resources can play an active role."
"Addressing the certification issue is in itself the act of improving corporate culture, systems and mechanisms of Toyota as a whole."
"We are committed to improving governance in the Toyota way through ongoing efforts to enhance the effectiveness of our initiatives."

Industry Context

The automotive industry is undergoing a 'once-in-a-century transformation' driven by technological advancements in Connected, Autonomous/Automated, Shared, and Electric (CASE) technologies, and increasing global competition. There's a rapid shift in consumer preferences towards electrified vehicles and a growing focus on carbon neutrality, leading to stringent environmental regulations worldwide. The pace of growth in the automotive market has moderated as pent-up demand from semiconductor supply constraint easing has been absorbed. Geopolitical tensions and trade policies, such as increased U.S. tariffs, are impacting supply chains and increasing costs across the industry. Companies are increasingly focusing on software-defined vehicles, advanced battery technologies, and hydrogen as key differentiators. The industry also faces challenges in securing raw materials, managing supply chain complexities, and attracting/retaining diverse talent.

Comparison to Industry Standards

Toyota's multi-pathway strategy for carbon neutrality, encompassing HEVs, PHEVs, BEVs, and FCEVs, contrasts with some competitors who are more singularly focused on BEVs, aiming to align with diverse regional energy situations and customer needs.
The target to introduce ten new BEV models by 2026 and achieve 1.5 million BEV unit sales by 2026 positions Toyota as a significant player in the BEV market, though some pure-play EV manufacturers or other large OEMs may have more aggressive BEV-only targets.
Toyota's investment of approximately 5 trillion JPY in BEV production, battery plants, and R&D through 2030 is a substantial commitment, comparable to the large-scale investments seen from leading global automotive and technology companies in the electrification space.
The development of next-generation batteries, including liquid lithium-ion with a 1,000 km cruising range and all-solid-state batteries for commercialization by 2027-2028, indicates a competitive edge in battery technology, a critical area for EV dominance, potentially surpassing current industry averages in range and charging speed.
The establishment of the Hydrogen Factory and the target of 100,000 fuel cell units annually by 2030, particularly for commercial vehicles, highlights Toyota's leadership in hydrogen technology, a segment where many competitors are still in earlier stages of development or have less defined commercialization plans.
The Woven City project, a 'living laboratory' for mobility, represents a unique, long-term investment in smart city and mobility infrastructure integration, a more holistic approach compared to competitors primarily focusing on vehicle-centric R&D.
The ongoing certification issues at Hino and Daihatsu, and even at Toyota Motor Corporation itself, represent a significant challenge to quality and compliance standards, which could impact brand reputation and regulatory standing compared to industry peers with fewer recent compliance issues.

Management Changes

Role	Previous Person	New Person	Effective Date	Reason
Chairman of the Board of Directors	N/A	Akio Toyoda	2023	Transitioned from President of TMC.
President, Member of the Board of Directors	N/A	Koji Sato	2023	Appointed as President of TMC.
Executive Vice President, Member of the Board of Directors, Operating Officer	N/A	Hiroki Nakajima	2025	Re-appointed/re-designated to this role.
Executive Vice President, Member of the Board of Directors, Operating Officer	N/A	Yoichi Miyazaki	2025	Re-appointed/re-designated to this role.
Outside Member of the Board of Directors	N/A	Shigeaki Okamoto	2025	Appointed as Outside Member of the Board of Directors.
Outside Member of the Board of Directors	N/A	Kumi Fujisawa	2025	Appointed as Outside Member of the Board of Directors.
Member of the Board of Directors who is a member of the Audit and Supervisory Committee	Outside Audit & Supervisory Board Member	George Olcott	June 12, 2025	Transitioned with the change in corporate governance structure.
Member of the Board of Directors who is a member of the Audit and Supervisory Committee	N/A	Christopher P. Reynolds	2025	Appointed as Member of the Board of Directors who is a member of the Audit and Supervisory Committee.
Member of the Board of Directors who is a member of the Audit and Supervisory Committee	Outside Member of the Board of Directors	Masahiko Oshima	June 12, 2025	Transitioned with the change in corporate governance structure.
Outside Member of the Board of Directors who is a Member of the Audit and Supervisory Committee	Outside Audit & Supervisory Board Member	Hiromi Osada	June 12, 2025	Transitioned with the change in corporate governance structure.
Vice Chairman of the Board of Directors	Shigeru Hayakawa	N/A	June 12, 2025	Retired from position.
Member of the Board of Directors	Simon Humphries	N/A	June 12, 2025	Retired from position.
Full-time Audit & Supervisory Board Member	Ikuro Sugawara	N/A	June 12, 2025	Retired from position due to corporate governance structure change.
Outside Audit & Supervisory Board Member	Sir Philip Craven	N/A	June 12, 2025	Retired from position due to corporate governance structure change.
Outside Audit & Supervisory Board Member	Emi Osono	N/A	June 12, 2025	Retired from position due to corporate governance structure change.
Full-time Audit & Supervisory Board Member	Takeshi Shirane	N/A	June 12, 2025	Retired from position due to corporate governance structure change.
Full-time Audit & Supervisory Board Member	Masahide Yasuda	N/A	June 12, 2025	Retired from position due to corporate governance structure change.
Full-time Audit & Supervisory Board Member	Katsuyuki Ogura	N/A	June 12, 2025	Retired from position due to corporate governance structure change.

Corporate Governance

Change Type	Description	Effective Date	Impact Assessment
Structure Change	Transitioned from a company with an Audit & Supervisory Board to a company with an Audit and Supervisory Committee, effective June 12, 2025, following shareholder approval.	June 12, 2025	This change aims to further accelerate decision-making and operational execution by clarifying the separation of responsibilities between the Board of Directors (decision-making and oversight) and operating officers (operational execution). It also enhances governance by requiring a majority of the Audit and Supervisory Committee members to be outside directors.
Executive Structure Reorganization	Reorganized the roles of operating officers and reestablished the position of executive vice president in April 2022, defining it as an operating officer focused on management perspective. Further revised in April 2023 to a management team implementing product-centered and region-centered management.	April 2022	Aims to accelerate management and foster a diverse and talented workforce by appointing executives with extensive knowledge and experience in product and regional pillars, enabling more flexible appointments based on challenges faced.
Board Composition	Appointed five outside members of the Board of Directors to reflect diverse opinions in management decision-making. The Audit and Supervisory Committee now has four members, three of whom are outside and independent directors.	Ongoing, with specific appointments in 2025	Enhances independence and oversight, bringing external perspectives to strategic discussions and risk management. The increased number of independent directors on the Audit and Supervisory Committee strengthens audit functions.
Committee Establishment	Established the Governance Risk Compliance Meeting in June 2024 to address important management issues, including certification issues and business continuity, and the Sustainability Meeting to evaluate key sustainability themes.	June 2024	Formalizes and strengthens the oversight of critical management issues and sustainability initiatives, ensuring dedicated focus and reporting to the Board of Directors.
Internal Controls and Training	Conducted internal audits of 17 key Toyota Group subsidiaries, devoting over twice as much time as conventional processes, and provided internal control training for officers of subsidiaries.	Ongoing in fiscal 2025	Aims to strengthen internal controls and prevent recurrence of issues like the certification misconduct by enhancing oversight and knowledge sharing across the group.
Executive Compensation Adjustment	Reflected the model certification application issues in the evaluation for 'Strong Production & Business Operation' for members of the Board of Directors and operating officers, resulting in reduced remuneration amounts for fiscal 2024.	Fiscal 2024 compensation determination	Demonstrates accountability of top management for corporate misconduct and aligns executive incentives with ethical conduct and quality assurance.

Legal Proceedings

Toyota is a defendant in class action lawsuits in Brazil and Argentina related to Takata airbag issues.
An economic loss class action lawsuit in Australia claims damages due to defective diesel particulate filters in certain vehicle models; Toyota received unfavorable judgments in lower courts and the High Court, with the case remanded for specific value calculation, but the estimated probable economic outflow is currently immaterial.
The U.S. Department of Justice (DOJ) closed its investigation into possible anti-bribery violations related to a Thai subsidiary in June 2025, after Toyota's cooperation.
Hino Motors, a consolidated subsidiary, faced multiple legal and regulatory actions globally due to engine emissions and fuel economy certification misconduct, including a corrective action order from Japan's MLIT, class action settlements in Canada (November 2024) and the U.S. (final approval April 2024), and a legal settlement in Australia (February 2025).
Hino reached an agreement with the DOJ in January 2025 to resolve its criminal investigation into U.S. engine emissions certification issues, agreeing to criminal and civil penalties.
Toyota recorded 281.14 billion JPY in fiscal 2025 for costs and expenses related to Hino's certification issues, covering potential resolutions and settlements.

Related Party Transactions

Toyota purchased materials, supplies, and services from its associates and joint ventures accounted for by the equity method, totaling 12,972.7 billion JPY in fiscal 2025.
Toyota sold products and services to its associates and joint ventures accounted for by the equity method, totaling 4,042.6 billion JPY in fiscal 2025.
As of March 31, 2025, Toyota had outstanding trade accounts and other receivables of 545.6 billion JPY from associates and joint ventures.
As of March 31, 2025, Toyota had outstanding trade accounts and other payables of 1,584.7 billion JPY to associates and joint ventures.
Toyota had an aggregate amount of 71.0 billion JPY in shortto medium-term loans outstanding to its associates and joint ventures as of March 31, 2025.
Toyota Motor Corporation announced its intention to sell its shares in Toyota Industries Corporation (an equity-method affiliated company) as part of a take-private transaction by Toyota Fudosan Co., Ltd. (also an equity-method affiliated company of Toyota Group companies).
TMC plans to invest 706 billion JPY in preferred stock of the Parent Company of Toyota Industries Offeror to partially fund the tender offer for Toyota Industries shares.

Stakeholder Impact

Shareholders: Impacted by decreased net income and operating income, but also by the company's commitment to return profits through share repurchases (1 trillion JPY authorized in May 2024, increased to 1.2 trillion JPY in September 2024, and a new tender offer for 1,192,330,920 shares announced in June 2025) and stable dividend increases (annual dividend of 90 JPY per share for FY2025).
Employees: Affected by the company's focus on human resource development, improving workplace environments, and initiatives like 'Factories for the Future' and 'AREA 35' to enhance productivity and job satisfaction. Labor relations are generally good, with wage raises and bonuses at union-demanded levels in FY2025.
Customers: Benefit from the company's focus on 'ever-better cars,' new product introductions (e.g., next-gen BEVs, Crown, Land Cruiser), expanded mobility services (KINTO, TOYOTA Wallet), and enhanced safety technologies (Toyota Safety Sense, Advanced Drive). However, certification issues at Hino, Daihatsu, and TMC could impact customer trust and product availability.
Suppliers: Engaged in collaborative cost reduction efforts (RR-CI, VA activities) and efforts to strengthen their foundation. The company's reliance on a single or limited number of suppliers for certain components poses risks to both parties if supply is disrupted. Cybersecurity measures are also being requested from key suppliers.
Creditors: The company maintains high credit ratings and sufficient liquidity, funding operations and financial services through cash generation and debt financing, including corporate bonds and securitization programs. Total interest-bearing debt was 108.0% of shareholders' equity as of March 31, 2025.
Regulatory Authorities: The company is actively engaged with regulatory bodies (e.g., MLIT, EPA, NHTSA, CARB, DOJ) to address compliance with vehicle safety, emissions, and fuel economy standards, as well as legal proceedings and investigations related to past misconduct. This involves significant costs and ongoing reporting.

Next Steps

Continue to implement the multi-pathway strategy for carbon neutrality, including developing new compact internal combustion engines, electric-rich HEVs and PHEVs, and next-generation BEVs.
Introduce ten new BEV models by 2026 and aim for 1.5 million Toyota and Lexus brand BEV unit sales annually by 2026.
Launch next-generation BEVs globally as a full lineup in 2026, aiming for a 1,000 km cruising range and significant cost reductions.
Commercialize next-generation popularization version liquid lithium-ion batteries in 2026-2027 and high-performance bipolar lithium-ion batteries and all-solid-state batteries in 2027-2028.
Promote external sales of fuel cells, targeting 100,000 units annually by 2030, focusing on commercial vehicles.
Continue to develop innovative next-generation fuel cell technologies for commercialization in 2026, aiming for increased generating capacity and reduced costs.
Advance the development of automated driving technologies, including the Arene software platform and Advanced Drive system, for both personally owned vehicles (POVs) and Mobility as a Service (MaaS).
Begin actual demonstration tests at Woven City in Fall 2025 or thereafter, expanding residents and visitors gradually.
Continue company-wide efforts to prevent recurrence of model certification issues, implementing 14 short-term tasks and working on medium-term cultural changes and long-term system reforms.
Deepen coordination with Daihatsu, Hino, and Toyota Industries to strengthen group governance and address recurrence prevention measures.
Proceed with the business integration of Hino and Mitsubishi Fuso Truck and Bus Corporation, scheduled to become effective on April 1, 2026.
Conduct a tender offer for Toyota Industries shares around early December 2025, followed by TMC's tender offer for its own shares around mid-January 2026, subject to completion of the Toyota Industries tender offer.
Cancel 1,200,000,000 shares of treasury stock on the last day of the quarter in which the settlement of the Tender Offer for Own Shares is completed.

Key Dates

Date	Description
2014	Toyota Motor Corporation confirmed that seven models were tested using methods that differed from government standards since this year.
2015	Toyota Safety Sense system market launch.
2019	KINTO service started in Japan; Toyota endorsed and signed on to TCFD recommendations in April; Toyota Motor Corporation's executive structure changed to senior managing officers and higher rank.
April 2019	Toyota endorsed and signed on to the recommendations of the Financial Stability Board's Task Force on Climate-related Financial Disclosures (TCFD).
May 2019	TRI invested an additional $100 million in its venture capital fund.
January 2020	Woven City concept announced at CES 2020.
April 2020	Toyota consolidated executive vice president and operating officer posts into operating officer; Toyota reported possible anti-bribery violations related to a Thai subsidiary to the SEC and DOJ.
May 2020	Japanese-market vehicle models became available through all sales outlets in Japan.
June 7, 2020	Full implementation of the amendment to the Foreign Exchange Regulations regarding prior notifications of inward direct investments.
June 2020	UNR155 (cybersecurity regulations) adopted at the World Forum for the Harmonization of Vehicle Regulations (WP.29).
July 2020	British Columbia Governor approved ZEV regulations; Toyota clarified roles of operating officers.
January 2021	THUMS software made available free of charge on Toyota's website; TRI-AD reorganized into Woven Planet Group.
April 2021	Lexus LS and Mirai models equipped with Toyota/Lexus Teammate state-of-the-art driving assist technology launched; Isuzu, Hino, and Toyota established Commercial Japan Partnership Technologies (CJPT).
June 2021	TRI established a $150 million fund for carbon neutrality and invested an additional $150 million in its venture capital fund.
July 2021	Suzuki Motor Corporation and Daihatsu Motor Co., Ltd. joined CJPT.
December 14, 2021	Toyota held a briefing on its BEV strategy, announcing a boost in annual BEV sales baseline to 3.5 million units by 2030.
March 2022	Hino Motors, Ltd. disclosed potential issues regarding emissions performance and certification; EPA reinstated California's authority to enforce its own greenhouse gas emissions standards.
April 7, 2022	Toyota received an unfavorable judgment in the court of first instance regarding the diesel particulate filters class action in Australia.
April 2022	Toyota reorganized the roles of operating officers and reestablished the position of executive vice president.
August 2022	Toyota announced investment of up to 730 billion JPY in Japan and the United States for BEV battery supply, aiming for production between 2024 and 2026.
September 2022	Toyota received certification and approval from SBTi for its reduction targets for Scope 1, Scope 2, and Scope 3 Category 11 emissions.
October 7, 2022	Hino submitted recurrence prevention reports to the MLIT.
October 2022	Phase 1 safety prayer ceremony for Woven City; start of building work for Phase 1 in November 2022.
November 2022	Japan elected as vice chair of WP.29; CARB finalized the Advanced Clean Cars II (ACC II) regulations.
March 2023	Further regulations came into effect in the EU to harmonize requirements with UNR, tighten RDE regulations, and CO2 emissions calculation for PHEVs; Trials of new electrolyzer began at DENSO Fukushima plant; Hino submitted recurrence prevention reports to the MLIT.
April 7, 2023	Toyota made a New Management Policy & Direction Announcement, announcing plans to introduce ten new BEV models by 2026 and aim for 1.5 million Toyota and Lexus brand BEV units by 2026.
April 17, 2023	A class action lawsuit against Hino and its subsidiaries was filed in Australia.
April 2023	Woven Planet Holdings, Inc., Woven Core, Inc. and Woven Alpha, Inc. merged and changed name to Woven by Toyota, Inc.
May 2023	Toyota announced plans to invest roughly 5 trillion JPY in BEV production, additional battery plants, and R&D through 2030; Toyota launched the BEV Factory business unit.
October 2023	CJPT reinstated Hino as a partner; Toyota decided to additionally invest in TBMNC and strengthen BEV battery production; Toyota announced a partnership with Idemitsu Kosan Co., Ltd. for all-solid-state batteries; CJPT signed a memorandum of understanding with Charoen Pokphand Group and Siam Cement Group in Thailand.
October 19, 2023	Hino and certain subsidiaries were sued in a putative class action in the Supreme Court of British Columbia, Canada.
October 25, 2023	Hino entered into a settlement agreement with the plaintiff in the U.S. District Court for the Southern District of Florida class action lawsuit.
December 2023	Environment and Climate Change Canada decided to regulate zero-emission vehicles from model years 2026 to 2035.
January 2024	Chairman Akio Toyoda unveiled the Toyota Group Vision.
January 26, 2024	Toyota Motor Corporation received instructions from the MLIT to investigate certain of its model certification applications.
March 2024	EPA announced a final rule for Tier 4 emission standards for passenger vehicles, light-duty trucks, medium-duty passenger vehicles and some heavy-duty vehicles from model year 2027 through 2032; Toyota Technical Center Shimoyama became fully operational.
April 2024	Toyota debuted new BEV models, the bZ3C and the bZ3X, at the Beijing International Automotive Exhibition; TRI invested an additional $150 million in its venture capital fund and a $150 million fund for carbon neutrality.
May 8, 2024	Toyota resolved to repurchase up to 410 million shares of its common stock at a total maximum purchase price of 1 trillion JPY; Toyota resolved to retire 520,000,000 shares of its treasury stock.
June 2024	Governance Risk Compliance Meeting established.
July 2024	Toyota Motor Corporation received a correction order from the MLIT regarding its model certification applications; CJPT began consolidating optimized logistics operations at its new logistics center, AEON Fukuoka XD.
August 2024	Toyota Motor Corporation submitted a report on measures to prevent recurrence of misconduct to the MLIT.
September 2024	Toyota announced strengthening collaboration with the BMW Group in the hydrogen sector; Toyota resolved to increase the maximum limit of share repurchases to 530 million shares at a total maximum purchase price of 1.2 trillion JPY.
October 2024	Completion of Phase 1 construction for Woven City buildings; OBD testing to verify compliance with safety standards during vehicle inspections became mandatory for domestic vehicles in Japan; Regulation (EU) 2024/2220 published specifying test procedures for event data recorders for heavy vehicles.
November 6, 2024	Toyota received an unfavorable judgment in the High Court of Australia regarding the diesel particulate filters class action.
November 13, 2024	Hino entered into a settlement agreement with the plaintiffs in the Canadian class action lawsuit.
December 2024	bZ3C BEV model launched in China; Revised Ambient Air Quality and Clearer Air for Europe Directive (Directive (EU) 2024/2881) entered into force.
January 2025	Hino reached an agreement with the DOJ to resolve its criminal investigation into engine emissions certification testing and performance issues in the U.S. market.
February 2025	TBMNC (Toyota Battery Manufacturing, North Carolina) started operations; Hino entered into a settlement agreement with the plaintiff in the Australian class action lawsuit.
March 2025	Public-private conference involving the MLIT and automobile manufacturers kicked off to study future-oriented certification systems; bZ3X BEV model launched in China.
April 1, 2025	Hino received final approval of the court for the U.S. class action settlement; BEV Factory reorganized to BR BEV; European Commission proposed a one-time flexibility measure for 2025-2027 carbon dioxide targets.
April 4, 2025	Partial amendment to the Foreign Exchange Regulations promulgated.
May 2, 2025	Minister of Finance published a list classifying Japanese listed companies into categories for inward direct investment.
May 19, 2025	Amendments to the Foreign Exchange Regulations became effective and applicable.
May 2025	US legislature passed resolutions to disapprove California's EPA waivers, signed into law by President Trump on June 12, 2025.
May 31, 2024	Toyota Motor Corporation reported to the MLIT that seven models were tested using methods that differed from government standards.
June 3, 2025	TMC, Toyota Industries, and TOYOTA FUDOSAN CO., LTD. announced the intention to conduct a series of transactions to take Toyota Industries private; Toyota determined to conduct a share repurchase and tender offer for its own shares.
June 10, 2025	TMC, Hino, Mitsubishi Fuso Truck and Bus Corporation (MFTBC) and Daimler Truck AG (Daimler Truck) executed an agreement concerning a business integration between Hino and MFTBC.
June 12, 2025	Toyota transitioned from a company with Audit & Supervisory Board to a company with Audit and Supervisory Committee; US legislature resolutions disapproving California's EPA waivers were signed into law by President Trump.
June 18, 2025	Date of filing of the Annual Report on Form 20-F.
Fall 2025 or later (scheduled)	Phase 1 official launch of Woven City testing.
Early December 2025 (around)	Toyota Industries Offeror aims to commence the Tender Offer for Toyota Industries.
October 2025	OBD testing to verify compliance with safety standards during vehicle inspections will become mandatory for imported vehicles in Japan.
Mid-January 2026 (around)	TMC currently plans to commence the Tender Offer for Own Shares.
April 1, 2026 (scheduled)	Business integration between Hino and MFTBC is currently scheduled to become effective, after which Hino is expected to cease to be a consolidated subsidiary of TMC.
November 29, 2026	Euro 7 regulations will apply to new types of passenger vehicles and light commercial vehicles.
2026-2027	Commercialization target for next-generation popularization version liquid lithium-ion batteries.
2027 or later	Production of Lexus-branded BEVs scheduled to begin in Shanghai.
November 29, 2027	Euro 7 regulations will apply to new passenger vehicles and light commercial vehicles.
2027-2028	Commercialization target for high-performance bipolar lithium-ion batteries and all-solid-state batteries.
May 29, 2028	Euro 7 regulations will apply to new types of buses, trucks and trailers.
May 29, 2029	Euro 7 regulations will apply to new buses, lorries and trailers.
2030	Target to boost annual BEV sales baseline to 3.5 million units; Target to reduce average GHG emissions for vehicles sold worldwide by 33% or greater compared to 2019; Target for 20% to 30% electrification rate for small light-duty trucks under eight tons in Japan; Target for 80,000 tons of hydrogen consumption for FCEVs in Japan.
2035	Target to reduce average GHG emissions for vehicles sold worldwide by 50% or greater compared to 2019; Target to achieve carbon neutrality at all global plants; ZEV mandate requires 100% of new passenger vehicles sold in California to be ZEVs; Canada requires 100% zero emissions for light-duty passenger vehicles and light-duty trucks sold after this year.
2050	Target for achieving carbon neutrality over the entire life cycle of vehicles.

Recommendation

hold

Keywords

Automotive, Financial Services, Mobility Company, Carbon Neutrality, Electrified Vehicles, BEV, PHEV, FCEV, Hydrogen Engines, Woven City, Supply Chain, Certification Issues, SEC Filing, Annual Report, Financial Results, Operating Income, Sales Revenue, Capital Expenditures, R&D, Risk Management, Corporate Governance, Japan, North America, Europe, Asia

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