Toyota 2015 Annual Report Download - page 24

vehicles such as mini-vans. For more than 40 years, Toyota has maintained its position as the largest automobile
manufacturer in Japan. Every year since fiscal 1999, Toyota, excluding Daihatsu and Hino, has achieved a
market share (excluding mini-vehicles) of over 40%, reflecting in part the success of the introduction of new
models for subcompact and compact cars, mini-vans and sedans. In August 2005, Toyota launched the Lexus
brand in Japan and achieved a record top market share of 25.6% in the luxury market in 2011. Toyota aims to
further distinguish the Lexus brand by continuing to attract new and affluent customers including customers that
typically had purchased imported vehicles.
North America
The North American region is one of Toyota’s most significant markets. Toyota has reorganized its
production structure and made improvements to its product lineup. In addition, Toyota is actively working to
promote increased local operations independence in North America, in accordance with the Toyota Global
Vision, announced in 2011.
In the North American region, of which the U.S. is the center, Toyota has a wide product lineup (excluding
large trucks and buses), and sold 2,839 thousand vehicles on a consolidated basis in fiscal 2016. This represents
approximately 33% of Toyota’s total unit sales on a consolidated basis. The U.S., in particular, is the largest
market in the North American region, accounting for 89% of the retail sales of Toyota in such region. Sales
figures for fiscal 2016 were 104.6% of those in the prior fiscal year.
Toyota commenced sales of the first-generation Prius hybrid model in North America in 2000. The Prius
became Toyota’s bestselling model behind the Corolla and Camry, having gained particular support among
customers concerned with the environment. Toyota introduced the first hybrid model under the Lexus brand, the
RX400h, and the Highlander hybrid in 2005. Toyota continued further expansion of its environmentally friendly
vehicles with the introduction of models such as the CT200h in 2011, the ESh and the Avalon HV in 2012, the
NXh in 2014 and the all-new Prius and the fuel cell vehicle MIRAI in 2015.
Since the introduction of the LS and ES models under the premium brand model, Lexus, in the United States
in 1989, Toyota has expanded its Lexus sales with models including the GS, IS and RX. In 2013, Toyota
introduced the new IS model, and unit sales reached 274 thousand units. Toyota is seeking to steadily increase
sales every year and achieved sales of 311 thousand units through the introduction of the new NX and RC models
in 2014 and 344 thousand units through the introduction of the new RX model in 2015.
Toyota is continuing to revise its vehicle models and North American production capacities in response to
changes in market conditions. Starting 2011, Toyota, instead of importing from Japan, began production of the
Corolla at its Mississippi plant. In 2013, the production capacity at the Woodstock plant in Canada increased
from 150 to 200 thousand units per year, and the production capacity at the Indiana plant also increased. Toyota
commenced production of the RX450h hybrid model at its Cambridge plant in Canada in 2014. Through the
business alliance with Mazda Motor Corporation, the production of Toyota brand light vehicles for sale mainly in
North America began at Mazda’s plant in Mexico in June 2015. In addition, Toyota commenced production of
the Lexus ES350 at its Kentucky plant for sale in the North America market starting in October 2015.
In terms of auto parts, Toyota increased production capacity of engine plants in Kentucky and Alabama in
2013 and 2014, respectively, to meet rising demand, and also increased production capacity of auto parts at its
automatic transmission plant in West Virginia in 2014.
In order to further strengthen competitiveness in North America, Toyota will continue the realignment of
North American manufacturing operations going forward. As part of this effort, a new plant will be built in
Mexico in 2019 and production of the Corolla will be shifted from the plant in Canada to the new plant in
Mexico. In addition to the plant in Mississippi, compact cars will also be produced at the new plant. Toyota will
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