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46 TOYOTA •Annual Report 2008 •
» Performance Overview
Favorable vehicle sales result in a
record number of new contracts
» Business and Regional Strategies
Strengthening our revenue bases
to realize sustainable growth
Highlights
• Strengthening the revenue base to
realize sustainable growth
• Providing an attractive financial
services products
Toyota financial services operations are
primarily handled by Toyota Financial
Services Corporation (TFS), which has
overall control of financial services
subsidiaries worldwide. TFS provides
financial services primarily for vehicle
purchases and leases to approximately
7.5 million customers in 32 countries
and regions worldwide.
Under the slogan “Growth and
Efficiency,” the TFS group continued
to focus on seven priority issues during
fiscal 2008. These included expansion
of sales financial services offerings
overseas, addressing demand for
attractive financial services such as easy
payment plans, strengthening the
group’s domestic revenue base,
promotion of comprehensive global risk
management and funding, and
operational process improvement.
In emerging markets where
business is growing at a particularly
rapid pace, TFS is aggressively
expanding its sales financing
operations. Taking the lead over
Financial services operations in fiscal
2008 were supported by strong sales of
Toyota- and Lexus-brand vehicles, which
enabled us to conclude a record 2.73
million new contracts for new and used
vehicles, and maintained a 29.2% share
of the new vehicle contract market. We
faced fierce competition from banks in
the first half of the fiscal year, but
operations grew steadily as a result of
favorable vehicle sales and intense, wide-
ranging collaboration among regional
management companies, distributors,
and dealers. However fiscal 2008
operating income declined to ¥86.5 billion,
as the credit environment became more
difficult in the second half of the fiscal 2008
following the sub-prime mortgage crisis in
the United States. To meet this changing
market environment, we have enhanced
risk management by reviewing lending
standards and loan collection systems, and
implementing other measures. We are
also making every effort to curb financing
costs and improve profitability by funding
optimally on a global scale.
Business Overview
Financial Services Operations
Toyota continually strives to offer global demand-stimulating
automotive financing services to suit the needs of
regional markets.
Financial Services
Operations