Toyota 2015 Annual Report Download - page 30

In April 2015, the GPC was reorganized into TPS Promotion Center in order to promote TPS (Toyota
Production System) and activities centering on improving production engineering and manufacturing methods at
each manufacturing process by sharing global best standards in cooperation across different plants in order to
foster highly skilled workers and improve logistics in order to comprehensively improve manufacturing abilities.
Through these activities, Toyota has been making efforts to resolve issues relating to the entire supply chain.
Toyota is working company-wide towards the production of “ever-better cars.” The production engineering
and manufacturing divisions are developing Toyota’s own innovative production systems, equipment and
processing technologies and deploying them in production lines in order to produce vehicles that create
excitement, joy and fun for customers through truly competitive manufacturing methods.
Distribution
Toyota’s automotive sales distribution network is the largest in Japan. As of March 31, 2016, this network
consisted of 280 dealers employing approximately 33 thousand sales personnel and operating approximately
4.7 thousand sales and service outlets. Toyota owns 15 of these dealers and the remainder is independent.
Toyota believes that this extensive sales network has been an important factor in its success in the Japanese
market. A large number of the cars sold in Japan are purchased from salespersons who visit customers in their
homes or offices. In recent years, however, the traditional method of sales through home visits is being replaced
by showroom sales and the percentage of automobile purchases through showrooms has been gradually
increasing. Toyota expects this trend to continue, and accordingly, is working to improve its sales activities such
as customer reception and meticulous service at showrooms to increase customer satisfaction.
Sales of Toyota vehicles in Japan are conducted through four sales channels — “Toyota,” “Toyopet,”
“Corolla” and “Netz.” In addition, Toyota introduced the Lexus brand to the Japanese market in August 2005,
and currently distributes the Lexus brand vehicles through a network of 169 sales outlets in order to enhance its
competitiveness in the domestic luxury automobile market. The following table provides information for each
channel as of March 31, 2016.
Dealers
Channel
Toyota
Owned Independent Total Market Focus
Toyota .............. 4 45 49 Luxury channel for Toyota brand vehicles
Toyopet ............. 4 48 52 Leading channel for the medium market
Corolla ............. 4 70 74 Volume retail channel centering on compact models
Netz ................ 3 102 105 Sales channel targeting customers with new values for
the 21st century
Brand
Sales
Outlets Market Focus
Lexus ................................ 169 Premium brand
Outside Japan, Toyota vehicles are sold through approximately 170 distributors in approximately
190 countries and regions. Through these distributors, Toyota maintains networks of dealers. The chart below
shows the number of Toyota distributors as of March 31, 2016 by country and region:
Country/Region Number of Countries Number of Distributors
North America ............................................ 3 5
Europe .................................................. 53 30
China ................................................... 1 4
Asia (excluding China) ..................................... 19 12
Oceania ................................................. 17 15
Middle East .............................................. 16 14
Africa ................................................... 55 48
Central and South America .................................. 30 40
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