Toyota's financial report for the fiscal year ended March 2023 indicated a projected operating income of 3 trillion yen. Amid the push towards electrification, the new management's strategy emerged from a Q&A with journalists.
Topic V: Making our customers smile is the essential premise of business management
Question: Looking ahead, how is Toyota strategizing to address the potential situation of an oversupply of products in the market once there is a sufficient and abundant supply of semiconductors?
When faced with supply shortages and price hikes, our primary objective as a company that values mass production is ultimately to deliver good quality products at the best possible prices. The ultimate goal is to make as many of our customers smile, as this is the bedrock of our business.
In the face of these short-term challenges, we've chosen to focus on long-term customer relationships and trust. Rather than passing on these costs, we've decided to focus on our own efforts to manage the situation.
Looking back over the past 14 years, under the leadership of Chairman Toyoda, we have launched and maintained several longselling car models like the Corolla and Crown. These models have consistently met our customers' expectations, including in terms of pricing. We understand that changing prices based purely on economic conditions is not a long-term trust-building strategy.
However, it's essential to improve our profitability in response to economic conditions. To this end, we've embraced what we call a “group” strategy. Rather than seeing models like the Crown in isolation, we increase efficiency and enhance product strength across a range of vehicles. This enhances the Crown's competitiveness while adding value.
By building these foundational strengths and continually striving to enhance the appeal of our cars, we believe we're focusing on a product-centered strategy. In the long run, this approach will build trust between Toyota and our customers.
However, as we add value, it's only natural to consider an appropriate price that matches this value. It's all about striking the right balance.
I hope you understand that the path we've chosen to follow stems from our steadfast commitment to our fundamental business principles.