Amarnadh Challagundla Gaurav Vangaal Kushal Gandhi

Anjali Kumari Gourav Arora

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In Jun 1995, Toyota announced the New Global Business Plan, aimed at advancing localization of production and increasing imports over a three year period. Major objective was to increase Toyota s offshore production capacity to 2 million units by 1998.

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Sustaining market leadership by reclaiming its market share.ƒ ƒ 1) 2) 3) Toyota also came up with a long term global business vision in Jun 1996 named the Global Vision 2005. . Accelerating globalization. The major components were: Asserting a competitive in technology.

ƒ The company focussed more on increasing the production of automobiles in areas where they were sold. Japan s economic difficulties led to constant fluctuations in the value of its currency. ƒ ƒ . It was the major reason that forced the company to consider localization of production.

Toyota replaced the engines of its Lexus range of cars with stronger models and made changes as per customer feedback.ƒ ƒ ƒ Toyota focussed on attaining a regional balance for its global operations by focussing equally on all its three core regions. It also invested heavily on upgrading its R&D capabilities. .

Toyota also launched new Lexus variants such as the new GS sedan and the RX 300 sports utility vehicle .ƒ ƒ ƒ In 1997. . a gasoline electric car. the world s first ever mass-produced hybrid car. All these became instant success in the US helping it further consolidate its position in that market. the company launched Prius.

It was designed specifically to appeal the Europeans style and quality demands. . Yaris improved the company s brand image in the minds of the customers and boost its growth in the region. Yaris. it was finding to perform well in Europe and Japan.ƒ ƒ ƒ ƒ Toyota launched a new small car. in April 1998 for European market. Moreover while Toyota was drastically increasing its market share in the US.

ƒ ƒ ƒ ƒ ƒ According to the industry observers. the above scenario was due to a host of reasons such as the following: Excessive capacity Choosy customers Surplus workforce Intensified competition within Japan. .

Toyota also undertook aggressive marketing efforts.ƒ ƒ ƒ ƒ Alarmed by this. Toyota started a new company. Toyota also decided to hire contract employee. Company renamed one of its dealership chains as NETZ. VIRTUAL VENTURE Co. .

. PDCA.  Compiled booklet THE TOYOTA WAY 2001 . Globalization as GLOBAL LOCALIZATION  Practiced philosophies such as KAIZEN.  Adopted Management hybrid of both Japanese & Western traditions. POKAYOKE & JIT. .

 Decided to increase the Engine Production Capacity.  Maintained close relationships with its dealers. Toyota decided to create new models.  To expand its customer base beyond its segment. .  Focus on New product launches in all segments.

Toyota started two new plants for making manual transmission for the Yaris.  In 2001. Corolla & Avensis. Toyota decided to engage European designers to design more cars. .  Toyota partnered with PSA Peugeot Citroen to increase its manufacturing capacity.  Increase in Manufacturing capacity in Europe.

 Launches its new models & expanded manufacturing capacities to meet local demand.  Constructed a new plant in Tianjin. Toyota made a late entry into high potential market. . company entered into many Joint Ventures & Alliances.  In 1999.

Innovation into the future .

ƒ ƒ ƒ Recycling Based society Age of Information Technology Development of Motorization on a global scale Diverse society ƒ .

. North America and Europe. management restructuring to clarify responsibilities . Authority to provide more freedom to local entities in each region Restructuring the profit structure so that Toyota was supported by 3 profit basesJapan.ƒ ƒ ƒ Focus on accelerating technology reforms and technology development across its global operations to help it strengthen its core technologies like engines and platforms.

India. small car market in Europe.ƒ ƒ ƒ ƒ ƒ ƒ 15% Market Share 2. African countries. Targeting new market segments as in truck market in US. . Strategic change in sourcing parts from those countries where they were available in cheap.7mn vehicles in addition to 6mn lakhs 18 manufacturing facilities 36000 workforce. targeting emerging economies like China.

truck. Corolla. Established an exclusive Scion marketing group. Tapping NA markets with SUV.world s 1st vehicle that could park itself. . Avensis. environmental and youth segments. aimed at developing a range of vehicles that appealed to young car buyers. Targeting Europe market with Diesel-powered versions of the Yaris. minivan. In 2003 Toyota unveiled Hybrid gasoline prius sedan.ƒ ƒ ƒ ƒ ƒ Entering into china with premium-end brands like Lexus.

When global vehicle production increased by 3.3 times. ƒ . ƒ After record sales of 730000 units in Europe 2003 ƒ In 2004 Toyota focused on diff areas like developing core models. ƒ 45 manufacturing facilities in 26 countries and sold vehicles in 160 countries with localization initiative. expanding local mfg capacity. cutting costs and increasing production volumes. Toyota production increased by 38 times. giving more autonomy to its European HQ. rebuilding sales network by making distributors into subsidiaries.

. Allion and Premio sedans.ƒ ƒ ƒ Strengthening the existing sales in different segments like large and midsize sedans and large and mid-sized SUV s. Launching new models for changing lifestyles like Camry. ipsum etc. Expanding lineup of compact cars and mini vans.

ƒ Toyota outsold all cos like GM. Chrysler in car sales.CHINA US Increasing manufacturing of vehicles. ƒ Selling of million vehicles annually. ƒ . ƒ Concentrated to increse market share upto 20% in countries like Thailand and Indonesia. relationships etc. ƒ They have retained interest in luxury vehicles and light trucks where good margins are available. Ford. ƒ Brand loyalty in the form market share prospects.

Nissan etc. Target to reach 15% market share in the global market & 10 % in china by 2012. € € € .€ € Became No 1 automobile company in 2007. Production in Japan marked sixth straight year of gains . Produced 9. Honda .4 million vehicles worldwide as compared to 9. Problem faced in its domestic market from VW.2 million of GM.

toyota recalled 8 million cars & trucks.S body is part owner in GM & Chrysler. Toyota paid fine without admission of doing wrong.37 billion was sought due to delay responses on defective accelerator pedal.€ In first quarter of 2010. Feb 24. Effect on production & sales. Risen conflict of interest as U. € € € € € . Record penalty of US $ 16. Toyota CEO Akio toyoda testified before house committee in US.

Also looking to set up new plant in India worth 3200 crore investment. € € € € . Toyota is looking to enter small passenger car segment.€ India s share in sales volume of toyota is small . but seen as good future market. Sales of high priced Prius is also good. Etios is first launched in India then export will follow.

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