Business Activities
Materials Handling Equipment / Logistics
Materials Handling Equipment
Logistics

P30−36
P30−35
P36

Automobile

P37–42

Vehicle / Engine / Car Air-Conditioning Compressor / Car Electronics

Textile Machinery

P43

Materials Handling Equipment

Global Business Development Led by Toyota
Material Handling Group (TMHG)

Business Activities in Fiscal 2016

As a market leader with extensive knowledge ofglobal logistics needs, Toyota Industries provides
a range of materials handling equipment, mainly
lift trucks, and logistics solutions to customers.

Business Overview in Fiscal 2016
In the materials handling equipment market, an increasein sales in Europe, North America and Japan
compensated for weaker sales in China and drove
continued growth globally. Based on the conditions ofrespective markets, Toyota Industries augmented its
production and sales activities and launched new
products. As a result, unit sales of our mainstay lift trucks
for fiscal 2016 increased 17,000 units, or 7%, to a total of
239,000 units over the previous fiscal year. Also, in a bid
to expand our business domains, we acquired the lift
truck business of Taiwan-based Tailift Co., Ltd. and thesales financing operations for materials handlingequipment in the United States. Consequently, net sales
increased ¥79.2 billion, or 9%, to ¥1,004.1 billion.

The lift truck market in 2015 sustained growth primarily indeveloped countries. Amid this environment, we carried out
sales expansion activities for remodeled internal-combustion
lift trucks and electric lift trucks, while offering solutions
designed to achieve greater logistics efficiencies, enhancing
responsiveness to large-order customers and ensuring
reliable after-sales services.
To increase our presence in emerging countries, we
acquired the lift truck business of Taiwan-based Tailift Co.,
Ltd. in August 2015. Capitalizing on Tailift’s strengths, we
aim to expand sales in emerging countries where market
expansion is expected over the medium to long term.

n Toyota Industries’ Global
Lift Truck Market ShareJapan

ToyotaIndustries

North America

Europe21%(Thousand units)

250
China

ALOMA*2

150
100
50
0

30

*2: ALOMA stands for Asia, Latin America, Oceania, Middle East and Africa.
(FY)

12

Toyota Industries Report 2016

13

14

15

16

*3: Surveys by Japan Industrial Vehicles Association and Toyota Industries Corporation,
2015

New GENEO-Ecore electric lift truck (released in October 2015)(Survey by Toyota Industries
Corporation, 2015)

Top: Region Bottom: Brand

Materials Handling Equipment Sales

200

In Japan, growing environmental consciousness has
triggered a drastic change in the lift truck market. Based on
the keywords of 3Es (Energy, Environmental protection and
Ecological thinking), we promoted sales of the new GENEO
internal-combustion lift trucks equipped with our own
engines with greater environmental performance. We also
introduced the remodeled GENEO-Ecore compact electric
lift truck fitted with our originally developed highly efficientAC motor that significantly reduces overall power
consumption. Through these efforts, we offer products
precisely matched to customers’ needs. As a result, unit
sales in fiscal 2016 increased 4% year-on-year to 40,000
units. Toyota Industries achieved a share of 46.8% in theJapanese market and maintained its top position*3 for the50th consecutive year.

platform*1: Survey by Aichi Corporationn Toyota Material Handling Group Brands

No. 1 Market Share in Lift Truck Unit Sales forthe 50th Consecutive Year

Materials Handling Equipment / Logistics

As a market leader in the materials handling equipment andlogistics fields, Toyota Industries assists customers
worldwide in attaining greater logistics efficiencies by
delivering logistics solutions optimally tailored to their
specific needs.
Under the TMHG management structure, we engage inbusiness under the TOYOTA, BT, RAYMOND and CESAB
brands. Mutually utilizing the sales and development
strengths of each brand, TMHG is promoting businessexpansion on a global scale.

Japanese Market

Business Activities

Materials Handling
Equipment / Logistics

Toyota Industries Commercial Finance, Inc. (TICF), which
was established in the United States with the aim ofstrengthening our sales financing operations for materials
handling equipment, commenced operations in October
2015. In order to respond to customers’ needs for the lease
and rental of materials handling equipment, TICF will strive
to strengthen its value chain, from sales of new equipment
to maintenance services during the lease period and sales ofused equipment after the expiration of the lease contract.
We plan to extend our reach to Europe, Asia and otherregions and reinforce our sales financing operations on a
global scale.
As for the Logistics Solutions Business, which isrepresented by automated storage and retrieval systems
and automatic guided vehicle systems, we are working tomeet a wide range of needs by providing consulting services
for customers’ logistics-related issues as well as assistingthem with installation and operation of equipment. In the
e-commerce industry, which has been growing in recent
years, we have been proactively making various proposals
and successfully acquiring new orders.
In the field of aerial work platforms, sales of Aichi
Corporation, which possesses the top brand*1 in this field inJapan, were negatively affected by a cutback in capital
investment by the telecommunication industry. On the other
hand, sales grew in line with rises in demand for the
replacement of aging facilities in theelectric power industry, demand forconstruction and such social
infrastructure work as tunnel andbridge inspections in the leasing
industry as well as demand formechanization in the railway industry.
Thus, overall sales of aerial work
platforms increased, and Aichi posted
sales exceeding the previous fiscal
year’s level.
Aichi Corporation’s aerial work

Promoting Feasibility Test of Fuel Cell (FC)Lift Truck
Since October 2015, Toyota Industries has been conducting
a feasibility test of its FC lift truck in a local wholesale market
under a project hosted by Shunan City, Yamaguchi
Prefecture. The test verifies the FC lift truck’s ability toachieve “Well to Wheel*4” CO2 emissions reduction underusage conditions that differ from factories and airports and a
degree of operational improvement resulting from its use.
We have also been engaging in a feasibility test of our FC lift
truck in the international cargo area of Kansai International
Airport since February 2015 and added two new practicaluse models for the test in 2016. The models are equippedwith an FC system newly and specifically developed for lift31

trucks, which uses the same fuel cell used in the MIRAI fuelcell vehicle released by Toyota Motor Corporation (TMC).
We plan for possible release of this FC lift truck during
fiscal 2017.
*4: From extraction of fuel raw materials to operation of lift trucks

approximately 86,000 units, up 16% from the previous
fiscal year.
Toyota, as a full-line supplier of lift trucks, remained themarket share leader*5 for the 14th consecutive year, andRaymond continued to hold its number one*5 market shareposition in narrow aisle electric lift trucks.

Expanding Product Lineup and Strengthening
Brand Appeal
Toyota expanded its product offering with the launch of fiveelectric lift trucks and one internal-combustion lift truck. In
response to high levels of needs for logistics solutions,Toyota released into the market the newly developed
T-Matics vehicle management system. T-Matics helps
increase efficiency and uptime by allowing operators toeasily track current usages and use collected data.

In fiscal 2016, Toyota celebrated 25 years of manufacturinglift trucks in North America. Throughout these years, Toyota
has been committed to manufacturing operations with anemphasis on quality to satisfy our customers and received anumber of awards, including 2015 Supplier of the Year from
United Rentals, Inc., the largest equipment company in theworld, in recognition of its product and service quality. On
another front, Toyota consolidated the manufacturing andsupport functions into one large space. The project isdesigned to enhance communication between employees
and repurpose factory floor space for improved
manufacturing processes.

Initiative to Achieve Greater Customer
Satisfaction
To further upgrade services to customers, we held the 4thService Skills Contest in November 2015, in which a service
representative from the 40 dealers across Japan
participated. Through this contest, we aim to improve ourservicing capabilities and raise awareness among service
staff in order to provide services that bring even greater
satisfaction to customers.

T-Matics vehicle management system

Raymond introduced models that improve operations
efficiency and energy-saving performance. They include theRaymond Model 6210 Walkie Straddle Stacker, which stores
pallets up to three levels high, and the Raymond Model
7310 Reach-Fork truck with unique four-directional travel
capabilities. Both models contribute to greater efficiency incustomer operations and work space. The Raymond Model
8210 Walkie Pallet Truck enables use in wider applications
thanks to dust- and water-proof protection of electronic
devices.

2015 Supplier of the Year awarded by United Rentals, Inc.

While working to raise product quality, Raymond has
been carrying out various improvement activities at its
production site and headquarters. Prime examples include
the reconfiguration of manufacturing space and the upgradeof its warehouse management software by applying the
Toyota Production System (TPS).

Service Skills Contest

Further Solidifying Our Leadership Position

North American Market

The North American lift truck market is expected to show
continued growth in 2016. Toyota and Raymond willcontinue to provide innovative products, excellent customer
service and solutions to our customers while focusing on theareas of automation, telematics and others. Through these
initiatives, we aim to further solidify our leadership position.

Maintaining Top Market ShareIn the expanding North American lift truck market, Toyota
Industries remained the market share leader*5 in 2015 withcombined unit sales of TOYOTA and RAYMOND brands of32

Toyota Industries Report 2016

Capturing Favorable Market Conditions to
Expand Unit Sales
Except for Russia and some other countries, European
economies in fiscal 2016 registered mild growth, and the lift
truck market expanded from the previous year. Amid these
conditions, Toyota Industries posted sales of 75,000 units,
up 9% from the previous fiscal year.

Continuing to Offer Attractive Products andLogistics Solutions
Toyota Industries proactively launched a series of new
products to meet various customer needs. In fiscal 2016,
we introduced the BT Staxio P-series, which helps alleviate
the burden on operators arising from long transportdistances within large distribution centers. The series
includes 11 platform stackers offering the right model foreach application.
The new electriccounterbalanced
lift truck Toyota
Traigo 48 was also
introduced,
offering classleading energy
efficiency while
being highly
productive in
limited spaces andfeaturing a shorter
turning radius tocontribute toraising customers’
logistics
Toyota Traigo 48 electric lift truck
efficiencies.
In addition to low lift trucks, the lithium-ion range ofelectric lift trucks was expanded to include reach lift trucks
and towing tractors. Lift trucks with lithium-ion batteries are
30% more energy-efficient than lead-acid batteries,
significantly reducing CO2 emissions as well as energy
costs. Besides offering new products, we proactively makelogistics solutions proposals, such as the introduction offleet management systems, thereby contributing to more
efficient overall logistics of customers.

Materials Handling Equipment / Logistics

FC lift truck

Reinforcing Quality and Production Functions

European Market

Business Activities*5: Survey by Crist Information & Research, LLC, 2015

In addition, both Toyota and Raymond implemented a
new marketing strategy to strengthen their respective
brands, including re-designed websites and new sales andmarketing materials.

Raymond 7310 Reach-Fork truck

33

Sales Promotion Initiatives

Engaging in Sales Expansion Activities amid
Slowing Markets
Toyota Industries covers the ALOMA markets of Asia, Latin
America, Oceania, the Middle East and Africa as well as the
Chinese market. We are serving these markets with a lineup
consisting of TOYOTA, BT and RAYMOND brands.
In 2015, the market uptrend enjoyed during recent years
took a downturn, resulting in stagnation in both markets.
Amid this market condition, unit sales decreased 9%compared with the previous fiscal year to 38,000 units.
Increased efforts for sales expansion, however, have beensuccessful in keeping market share virtually unchanged.

TOPICS
Distributor Conference
The Distributor Conference held in Nagoya, Japan, in
April 2015 was attended by 146 representatives
from Toyota, BT and Raymond distributors/dealers
spanning 46 countries. The conference included theconfirmation of the medium- to long-term vision andspecific action plans, and a common approach for
future directions was confirmed. Also on the agenda
was the awards ceremony for the 2014 Distributor
Award Program. During the conference, participants
pledged to work harder to achieve objectives basedon the slogan “Lift Beyond Together.”*A LOMA is a Toyota Industries term for Asia, Latin America, Oceania, Middle East andAfrica.

In October 2015, the used trading facility in Antwerp,
Belgium, was opened. Dealers from all over the world havethe opportunity to buy used Toyota lift trucks from one single
source from wide product offerings. In Germany, an online
shop was launched as a new sales channel, which raises
customer convenience by enabling quick order placement of
spare parts, and already indicates incremental business
opportunities.

Toyota Material Handling India Pvt. Ltd. is working tostrengthen its sales network in India. In 2015, a new sales
office and parts warehouse were opened in Gujarat toimprove its customer service capabilities. Parts warehouses
were also opened in Chennai and Pune to be closer tocustomers and deliver parts more quickly.
Toyota Material Handling Australia Pty Limited (TMHA)
covers the entire Australian region with fully captive sales,
service and rental finance service branch operations offering
TOYOTA, BT and RAYMOND brands. Through these efforts,
TMHA expanded unit sales, although the market showedsigns of a decline in 2015. TMHA will continually enhancesales activities to further meet customers’ needs.

Dealer Convention in Buenos Aires

In Singapore, Toyota Material Handling Marketing Asia
Pacific Pte. Ltd. (TMHMAP) was established in 2015 andreplaced the previous Asia Regional Office in Singapore tostrengthen the relationship with distributors in the Asia andPacific region. TMHMAP continuously works closely with
distributors in an effort to raise its responsiveness in terms ofsales and after-sales services and to meet customer
expectations.
In China, amid rising needs for electric lift trucks, we
worked to strengthen the sales structure of electric lift trucks
at Toyota Material Handling (Shanghai) Co., Ltd. and further
reinforce the sales and service networks in principal regions.
We are also promoting cooperation with Tailift, whichbecame a subsidiary of the Toyota Industries Group in
August 2015, and considering strategies to createsynergies.

Continuing to Accurately Meet Customer Needs
The lift truck market in Europe in 2016 is anticipated to beon par with 2015. Amid this backdrop, we will stay focusedand listen to customers. We will also continue investment in
R&D to offer products and logistics solutions that capture
market needs and contribute to improving customers’materials handling operations with the aim of becoming
No. 1 in Europe.

Distributor Conference

Regional Distributor Conferences for
Warehouse Trucks
From October to December 2015, we held Regional
Distributor Conferences for the ALOMA region witharound 50 participants from major distributors. The
events took place in Dubai, Jakarta and Santiago,
with a focus on the concept of “Increasing Sales of
Warehouse Trucks.” Presentations by successful
distributors confirmed the necessity of having
knowledge and functions in place such as proper
stock, leasing services and a strong service
organization.

Materials Handling Equipment / Logistics

Initiatives in Major Markets

Toyota Industries booth at CeMAT 2016

Business Activities

Each sales and marketing company in Europe actively
organized and participated in sales promotional events inthe market. In the Netherlands, we took part in Logistica,
the country’s largest trade fair held every three years, andwelcomed approximately 1,200 visitors at the booth where
we promoted our products and logistics solutions. In othercountries, we appealed product offerings by organizing acustomer event and other activities.
Prior to the upcoming CeMAT Fair, a press preview
conference was held in February 2016 in Hanover, Germany,
inviting 100 journalists from 22 European countries. Under
the theme for CeMAT 2016, “think CeMAT, think Toyota,” wehighlighted a wide range of product offerings and logistics
solutions as well as our dedicated initiatives to improve
quality.

ALOMA* and Chinese Markets

In Brazil, amid a slowing economic condition, Toyota
Material Handling Mercosur Indústria e Comércio deEquipamentos Ltda (TMHM) stepped up company-widesales expansion activities primarily in strategic areas whileworking to improve the local procurement ratio of parts forinternal-combustion lift trucks that TMHM manufactures.
In Argentina, TMHM held the annual Dealer Convention
in September 2015 in Buenos Aires. A total of 16 dealers
participated, including two newly assigned dealers from
Bolivia and Paraguay, and actively engaged in discussions
regarding sales policies and strategies in the region.

Providing Reliable Support to Customers’
Logistics Efficiencies

Participants of service skills contest in Australia

While 2015 showed a decrease in demand for lift trucks in
the ALOMA and Chinese markets, growth is expected toremain weak during 2016. Amid this prospect, we willcontinue to strive for providing reliable support to improvecustomers’ logistics efficiency by capturing the needs ofboth new and existing customers regardless of the market
situation.
Regional Distributor Conferences for Warehouse Trucks

34

Toyota Industries Report 201635

Automobile

Materials Handling
Equipment / Logistics
Logistics

Toyota Industries offers customers highly
advanced, efficient logistics services throughconsigned operation of distribution centers andland transportation services.

Both the logistics services business and the landtransportation services business for automotive parts
increased. However, as we sold our stakes in two
subsidiaries, one engaging in cash collection and delivery
and cash proceeds management services and the other indata storage, management, collection and delivery
services, net sales in fiscal 2016 declined ¥11.1 billion, or11%, from the previous fiscal year to ¥86.9 billion.

Planning, Design and Operation ofDistribution Centers
Toyota Industries operates distribution centers for various
industries and customers. During ﬁscal 2016, operation ofexisting distribution centers generated a relatively steadylogistics volume. In this environment, we strived tostrengthen our proﬁt structure through cost improvement
activities undertaken at logistics sites based on the thinking
embodied in TPS and simultaneously worked to enhance
the level of services to customers.
With an aim of optimizing logistics in each customer’s
entire supply chain, we continue our proactive sales
activities by making proposals that leverage the maximum
use of the Toyota Industries Group’s resources incollaboration with the Materials Handling Engineering
Business. In fiscal 2016, we started operating two additional
distribution centers for customers mainly in the medical andpharmaceutical industries. In total, we now operate 20
distribution centers under consignment.
Looking ahead, we will continue to facilitate ourproactive sales activities for both increasing orders fromexisting customers and acquiring new customers inindustries having high growth potential.

36

Toyota Industries Report 2016

VehicleTaikoh Transportation Group’s
land transportation services

Sale of Shares of Two Consolidated
Subsidiaries
We have been pushing for “concentration and selection” ofour operations to focus on businesses that are closely linked
to our core businesses in the materials handling equipment
and automobile-related fields. As part of this effort, we soldour stakes in two subsidiaries, Asahi Security Co., Ltd. andWanbishi Archives Co., Ltd., in December 2015. The former
was sold to SECOM Co., Ltd. and the latter to Nippon
Express Co., Ltd.
In addition to cash collection and delivery services
tailored to each customer’s specific needs, Asahi Security
offers comprehensive services that include management ofgift certificates and accounting operations at customers’
retail outlets. Furthermore, the company provides security
services integrating the monitoring by security devices anddispatch of security guards on a 24/7 basis. Wanbishi
Archives provides support to financial institutions andgovernment agencies to ensure the security and efficientuse of their information assets. Under its robust security
structure, Wanbishi Archives offers a comprehensive rangeof services covering the entire lifecycle of critical information
assets in electronic, paper or other forms, from storage andutilization to destruction.
Both companies have attained a certain level of growthby providing these value-added logistics services tocustomers and benefited from our support in achieving
operational improvements. Nevertheless, in order to makesignificant growth in the future, we believe that it will bebeneficial for them to work with companies that cangenerate greater business synergies. We decided to sell off
our stakes after holding discussions with both companies.

Business Overview in Fiscal 2016
In the automobile industry, market conditions weresluggish in Japan, Latin America and other emerging
countries but remained strong in North America.
Consequently, global sales were on par with the previous
year.
In fiscal 2016, unit sales of the Vitz (Yaris outside
Japan) and the RAV4 declined by 15,000 units, or 5%,
from the previous fiscal year to 293,000 units. However,various factors, including the addition of a hybrid versionof the RAV4, served to push up net sales by ¥21.0 billion,
or 5%, to ¥480.0 billion.

Development and Production of Plastic Glazing
Toyota Industries’ plastic glazing panoramic roof has beenused on TMC’s hybrid vehicle Prius a (Prius + in Europe andPrius v in North America). This product retains the beautiful
surface quality typical of a glass roof yet is approximately
40%* lighter than its glass counterpart, improving vehicle
fuel efficiency and thus contributing to the reduction of CO2
emissions.
Our plastic glazing rear and quarter windows have been
adopted on the 86 GRMN, a limited-edition model releasedby TMC in 2016, and have contributed to achieving a
reduction in weight and a lower center of gravity. Moreover,this rear window offers the world’s first defogger for a plastic
glazing product.
Toyota Industries will continue to develop attractive new
products that leverage the distinctive characteristics ofplastic glazing.
* Survey by Toyota Industries Corporation

Automobile* Starting from fiscal 2017, the business for planning, design and operation of distribution
centers will be classified into the Materials Handling Equipment Segment while thebusiness of land transportation services will be included in the Others Segment.

In the fields ranging from vehicle assembly toengines, car air-conditioning compressors and car
electronics, Toyota Industries continues to meetthe expectations and trust of its customers.

Materials Handling Equipment / Logistics

Business Overview in Fiscal 2016

The Taikoh Transportation Group provides landtransportation services under consignment from many
automotive parts manufacturers. The group collects finishedparts from manufacturers, compiles them by theirdestination and delivers to automakers “what is needed,when it is needed and in the quantity needed.”
During fiscal 2016, despite a slowdown in automobile
production in Japan, we acquired a steady logistics volume
in the transportation of automotive parts. Under thesecircumstances, we continued to conduct various profit
improvement activities, including the promotion of efficientcargo transport, while at the same time aggressively
undertaking activities to ensure safe and environmentconscious operations.
We will continue tofurther reinforce our sales
activities to capture newcustomers and, ultimately,
to expand business
operations.

Business Activities

from Toyota Motor Corporation (TMC) we have received anaward for excellence under the Toyota Quality Control Award
program for four consecutive years.
In October 2015, following a minor model change of the
RAV4 for markets outside Japan, we initiated production ofa hybrid model of the RAV4 in addition to the conventional
internal-combustion models. In the face of the shrinking
automobile market in Japan, we are further strengthening
our already superior level of safety, the environment, quality,
cost and delivery (SEQCD). We also are working to leverage
our ability to quickly start up production and a flexible
structure in terms of vehicle models and production volume
to contribute to production in Japan of Toyota vehicles.

Land Transportation Services

Highest-Level SEQCD to Contribute to
Production of Attractive Toyota Cars
In recognition of Toyota Industries’ comprehensive strengths
in vehicle quality, delivery, cost and safety as the highest
among all Toyota-affiliated automobile body manufacturers,

Plastic glazing rear window

Vehicle Sales(Thousand units)

350
300
250
200
150
100
50
0

Plastic glazing quarter window
(FY)

12

13

14

15

16

37

“Our Vitz and RAV4” Initiative for Enhancing
Appeal of the Two Car Models

Business Overview in Fiscal 2016
Despite the launch of production of GD diesel engines,
unit sales in fiscal 2016 declined 134,000 units, or 24%,from the previous fiscal year to 434,000 units. This decline
was mainly attributable to decreases in sales of KD diesel
engines and AR gasoline engines. Net sales dropped¥33.8 billion, or 18%, from the previous fiscal year to¥158.2 billion.

Engine Sales(Thousand units)

700
600
500
400
300
200

0

(FY)

12

13

14

15

16

Vitz No. 3 car participating in Rally Toya

Toyota Industries participated in Tokyo Auto Salon
2016, held from January 15 to 17, 2016, toshowcase its concept car for the first time to the
public. Many visitors were pleased with its unique,flowing contour and wanted it to be introduced into
the market as it is.

Concept car on display

38

Toyota Industries Report 2016

Toyota Industries’ engines are highly renowned for their
excellent environmental performance in non-automotive
fields as well. These engines are used for a wide variety of
applications, including our lift trucks, and adopted by GHP*1
manufacturers in Japan and CHP*2 manufacturers
worldwide.
We expanded our lineup of industrial engines with theaddition of the Toyota 1KD industrial diesel engine, which isequipped with a turbocharger developed in-house, and the
Toyota 1FS gas/gasoline engine in March 2013, followed in
December 2013 by the Toyota 1ZS industrial diesel engine
also equipped with a turbocharger developed in-house.
These three new engines offer downsized displacementcompared with conventional models with equivalent output,
which results in higher fuel efficiency, cleaner emissions anda reduction in size.
*1: Short for gas heat pump; air conditioner driven by a gas engine*2: Short for combined heat and power; co-generation system

For the Creation of Better Engines
Toyota Industries’ Diesel Engines Highly
Acclaimed by Customers Worldwide

TOPIC

Developing Competitive Diesel and Gas/
Gasoline Engines in Non-Automotive Fields

Toyota Industries’ diesel engines, mounted in a variety of
Toyota vehicles sold around the world, have gained highmarket recognition for their clean emissions, fuel efficiency
and high performance. The V-type 8-cylinder VD diesel
engine is installed in the Land Cruiser for markets outside
Japan, including Australia, Russia and the Middle East. As asuccessor model of KD diesel engines, we commenced
production of GD diesel engines in June 2015. These
engines, which are installed in TMC’s Land Cruiser Prado
and other vehicles, are equipped with a turbocharger, forwhich we participated in the development and started
production in-house, and boast significantly higher
performance.
As part ofefforts to increase
the production of
GD diesel engines,
an additional
production line
went into
operation in
January 2016 at
GD diesel engine
our Hekinan Plant

Fuel efficiency and emissions standards are becoming more
and more strict, as called for in the twenty-first session of
the Conference of the Parties (COP21) held in Paris, France,
in November 2015 and as evidenced by India imposing
increasingly severe regulations on diesel engines. Even
before such trends became prevalent, Toyota Industries has
been carrying out development of next-generation
automobile engines that can clear Euro 6 and other stringent
emission standards, as well as engines for materials
handling equipment and general purposes featuring greater
fuel efficiency and lower costs. In November 2014, TMC andToyota Industries agreed to gradually consolidate diesel
engine development and production functions into theoperations of Toyota Industries. Accordingly, we will step up
our efforts to achieve shorter development cycles withimproved efficiency in order to develop and produce diesel
engines with greater competitiveness.
For our general-purpose engines, we will plan, develop
and produce a lineup of products matched to customers’
needs while actively promoting sales activities.

Car Air-Conditioning Compressor

Business Overview in Fiscal 2016
In fiscal 2016, unit sales of car air-conditioning
compressors rose 1.05 million units, or 4%, over theprevious fiscal year to 30.37 million units as a result of anincrease in sales in North America, Europe, China andother regions. Net sales rose ¥18.0 billion, or 6%, over theprevious fiscal year to ¥342.6 billion.

Compressor Sales(Million units)

35
30
25
20
15
10
5
0

(FY)

12

13

14

15

16

Automobile

100

in Aichi Prefecture to manufacture the turbocharger to be
mounted on GD diesel engines. In March, Toyota Industries
Engine India Pvt. Ltd. (TIEI), a consolidated subsidiary inIndia engaging in the manufacture of engines, also initiatedproduction of GD diesel engines.

Business Activities

As the sole producer of the Vitz in Japan and with the aim ofturning the vehicle into a long-selling series, Toyota
Industries collaborates with TMC and its dealers to makevarious suggestions under the banner “Taking the Lead in
Making Our Cars More Attractive.” Similarly, to boost theappeal of the RAV4, we plan and develop special-edition
vehicles that directly reflect the voice of our customers.
Through these endeavors, we seek ways to create more
appealing and satisfying vehicles for customers worldwide.
At the same time, we also undertake activities to expand
our customer base by enhancing the appeal of the Vitz
through our support to motorsports events.

EngineDevelopment Efforts Based on 3Es(Energy, Environmental Protection and
Ecological Thinking)More stringent fuel efficiency standards have been enforcedin North America, Europe, Japan and China, requiring
automobiles to provide extremely high fuel efficiency
performance.
Against this backdrop, in the field of car air-conditioning
compressors to be mounted in internal-combustion
vehicles, we are concentrating on development of avariable-displacement type compressor with considerably
greater fuel efficiency while also focusing on an optimum

6SES14 compressor (variable-displacement type)39

To offer attractive products to the growing number of
automakers worldwide now actively engaged in thedevelopment of HVs, we developed the ESB series, which iseven more compact, fuel efficient and lighter weight. The
ESB20 compressor mounted in the new Prius uses a newly
developed motor and inverter and has an improved
compression structure. We have succeeded in reducing its
size and weight compared with the ES14 installed in thethird-generation Prius models, while improving its airconditioning capability by 30% and reducing power
consumption by 8%.
Besides TMC, Ford Motor Company, Volkswagen,Honda Motor Co., Ltd. and Nissan Motor Co., Ltd., which
are already using our electric compressors in their respective
HVs and EVs, we will continue to ramp up our efforts to
expand sales to other automakers in Japan, the UnitedStates and Europe.

Augmenting Technical Support Capabilities
We station our sales engineers in the United States,
Germany, Italy and China and provide technical support
locally, promoting sales expansion and activities to prevent
quality issues from occurring.
In fiscal 2014, two of our consolidated subsidiaries,
namely, Michigan Automotive Compressor, Inc. (MACI) in the
United States and TD Deutsche Klimakompressor GmbH(TDDK) in Germany, began to conduct design operations
locally. A reduction indevelopment lead time
resulting from our local
design operations has
been received favorably
by automakers. We
plan to continue thisinitiative in the future.
Local design operations at MACI

Establishing Optimum Global Production and
Supply Structuresn Worldwide Bases of Car Air-Conditioning Compressors (As of March 31, 2016)

TOPIC
TDDK
DNDE

Germany

Germany

YST

DICH

MACI

China

China

U.S.A.

DIAM

U.S.A.

DSIT

Italy

TICO

DNTS

Japan

Italy
SUBROS

TACK

India

China

TACG

U.S.A.
TICA

U.S.A.

TACI

Indonesia

DNBR

BrazilConsolidated production bases

Licensed manufacturers

Technical service stations

Toyota Industries’ car air-conditioning compressors are widely adopted by automakers around the world, garnering the No. 1* position in global sales.

MACI is Toyota Industries’ oldest compressor
manufacturing base outside Japan and celebrated
its 25th anniversary in June 2015. Globalization of
our Car Air-Conditioning Compressor Business, forwhich we now boast the world’s top share*, beganfrom here. Currently, MACI operates the largest
compressor plant in the United States with annual
production of more than 5 million units of mainly
variable-displacement type compressors, which
possess such attributes as high efficiency, greater
fuel economy andlow environmental
impact.
Cumulative
production
reached 100
Ceremony to commemorate the cumulative
million units in
production of 100 million units
December 2015.
* Survey by Toyota Industries Corporation

Business Overview in Fiscal 2016
Net sales of electronics products were affected by amodel change of TMC’s Prius. Along with the growing
market of electric-powered vehicles, we proceeded withefforts to enhance the appeal of our products.

Expanding Experience and Role inElectric-Powered Vehicle Field
Toyota Industries develops and produces electronic
components and devices for electric-powered vehicles,
including HVs, plug-in hybrid vehicles (PHVs), EVs and fuelcell vehicles (FCVs). In addition to TMC, we are pursuingbusiness expansion to other automakers in and outside
Japan.

Auxiliary Power Source Devices
A DC-DC converter converts the high voltage of HV
batteries to a lower voltage level to supply power toelectronic control units, lights, wipers and other auxiliary
devices.
For the new, fourth-generation Prius, by developing theworld’s first thick copper substrate with excellent heatdissipation property and revising the way to integratecomponents on the circuit board, we reduced the volume
and weight of the converter by 50% and 60%, respectively,
compared with the product used on the third-generation
Prius.
Leveraging ourtechnologies
accumulated in thefield of DC-DC
converters for HVs,
we successfully
developed andcommenced salesof a DC-DC
converter for use
with start-stop
DC-DC converter mounted in the new Prius
systems, which can
suppress a voltage drop at the time of engine restart, andhave been promoting its sales to automakers.
A DC-AC inverter is equipped to use home electric
appliances in a vehicle and has drawn a great deal of publicrecognition for its use as an emergency power source
following the Great East Japan Earthquake. Since

Automobile

ESB20 compressor (electric type)
SCSE06 compressor (fixed-displacement scroll type)To respond to growing demand for variable-displacement
type compressors triggered by the enforcement of more
stringent fuel efficiency standards, we are proceeding withaugmentation of corresponding production capacities andcommenced local production of key functional parts at our
production bases in North America.
In Europe, the ASEAN countries and China as well, weare expanding production capacities and increasing the ratioof locally procured parts to accommodate growing demandfor car air-conditioning compressors.

Car Electronics

Business Activities

balance between performance and prices of fixeddisplacement type products targeting emerging countries.
In the field of variable-displacement type compressors,
we developed the SES series that simultaneously offers
greater fuel efficiency and a reduction in weight, and it has
been adopted by TMC in its Corolla, as well as by Daimler
AG, General Motors Company (GM), Volkswagen AG and
Hyundai Motor Company.
As for fixed-displacement type scroll compressors forlight and compact vehicles, we developed the SCSE series,
which possesses such excellent properties as lighter weight,
greater fuel efficiency and quieter operation. It has been
installed in an increasing number of vehicle models of
Daihatsu Motor Co., Ltd. and GM.
Since initially being installed in the second-generation
Prius, our electric compressors for hybrid vehicles (HVs) andelectric vehicles (EVs) have been mounted in all of TMC’s
HVs from the fourth-generation Prius to the LS600h.

* Survey by Toyota Industries Corporation

40

Toyota Industries Report 201641

Textile Machinery

Charging Infrastructure

Participation in ITMA 2015

Based on the philosophy of founder Sakichi
Toyoda, which reflects his strong commitment tomanufacturing, Toyota Industries responds to abroad range of needs with its extensive productlineup, from air-jet looms, for which we enjoy theworld-leading market share*1 in unit sales, to ring
spinning frames and roving frames.
*1: Survey by Toyota Industries Corporation

Business Overview in Fiscal 2016

Business Development of Weaving andSpinning Machinery

Main control stand (high-performance
unit to control sub-stands)

Sub-stands(charging only)
Charging stand for PHVs and EVs

Accelerating Development Activities toContribute to a Low-Carbon Society

In the field of weaving machinery, we introduced anenhanced electronic shedding device to our JAT810 air-jet
loom, for which we enjoy the world’s top market share. This
shedding device serves to increase textile variations byenabling the weaving of fabrics with complex patterns.
In the field of spinning machinery, we have added afeature to the RX300 high-speed ring spinning frame as an
option to produce a new spun yarn called mosaic yarn*2

Toyota Industries Report 2016

Spinning machinery booth

Air-Jet Loom Sales(Thousand units)

As many countries adopt regulations requiring high energy
efficiency, electrification is expected to become morewidespread not only for automobiles but also for materials
handling equipment and other non-automotive products.
Targeting the high-growth, electric-powered vehicle market,
we will accelerate our development efforts to enhance our
products in the fields of HVs, PHVs, EVs and FCVs, thereby
contributing to a low-carbon society.

1086Weaving machinery booth

4

Uster Technologies booth*2: A special yarn newly developed by Toyota Industries, which is made by alternating or
mixing two rovings in different colors, offering a considerable degree of freedom in colorand design choices*3: A roll of thinly spread sheet of fibers

2
0

42

Textile Machinery

The textile machinery market remained stagnant as
economic growth slowed down in China and emerging
countries in Asia. While sales of weaving machinery
expanded, with unit sales of air-jet looms increasing 400
units, or 8% year-on-year, to 6,200 units, sales of spinningmachinery and yarn quality measurement instruments
declined. As a result, net sales were down ¥2.5 billion, or
4%, from the previous fiscal year to ¥65.6 billion.

In November 2015, Toyota Industries participated in ITMA
2015, an international textile machinery exhibition held in
Milan, Italy. A total of 1,600 companies from 46 countries
participated in the event, including those in Europe, India
and China, and there were more than 120,000 visitors. At
this exhibition, we displayed our JAT810 air-jet loom, RX300
high-speed ring spinning frame and various other products
and appealed the excellence of these products’environmental performance and reliability. As for the TCO12
comber co-developed with Truetzschler GmbH & Co. KG,
our partner manufacturer of spinning machinery in Germany,
we conducted a demonstration of its automatic lap*3change system called Automatic Lap Piecer. The system’s
excellent stability during high-speed operation received highmarks from visitors.
Uster Technologies AG, a Swiss-based consolidated
subsidiary producing yarn quality measurement instruments,
also participated in the exhibition to present, among others,
the world’s first quality control system covering the entire
spinning process and appealed its advanced total quality
solutions.

Automobile

Toyota Industries sells public-use charging stands andhome-use charging units for PHVs and EVs, which havebeen jointly developed with Nitto Kogyo Corporation.
We exhibited our new public-use charging stand at the44th Tokyo Motor Show held in October 2015. This productconsists of one main control stand that offers charging
functionality as well as such features as communication,
IC card-based user authentication and billing, and multiple
low-cost, charging-only sub-stands. Besides the existingmodel’s features, the main control stand has an additional
capability to control up to 10 sub-stands, thereby reducing
the initial costs of installing multiple charging stands.
We are positioning this new charging stand as astandard model of the charging infrastructure and will strive
to enhance its functionality to ensure that we continue tosatisfy customer needs. Along with sales of charging stands,
we will work to enhance maintenance, inspection and otherservices.

Core Components for Drive Systems
Since 1967, we have been providing inverters for materials
handling equipment and accumulating a pool of know-how
and expertise on power electronics technologies.
Utilizing suchtechnologies,
Toyota Industries
applied its
proprietary directcooling method todevelop a device
with significantly
higher cooling
performance in2009. We have
4WD rear inverter mounted in the new Prius
entered the field ofcore components for drive systems such as power control
units (PCUs) for the third-generation Prius.
The new Prius offers a four-wheel drive (4WD) model forthe first time in the series, and it is fitted with our rear
inverter for 4WD use. This product converts the DC voltage
of HV batteries to AC voltage and feeds power to the 4WD
rear motor. The adoption of a forced air-cooling systemeliminates the need to install cooling water piping, thereby
providing greater ease in mounting the inverter on vehicles.
The inverter also features quieter operation as it is mounted
near the cargo space.
In the future, we will augment our development efforts inand have been receiving favorable feedback from manycustomers.
We aim to meet customer expectations by developing
textile machinery that produces high value-added textile
products through the pursuit of advanced technologies andcontinuous creativity and ingenuity as well as by providing
meticulous after-sales services via an enhanced service
structure.

order to increase orders for core components of drive
systems, for which further growth is expected.

Business Activities

commencing
production in 1995,
we have achieved
cumulative
production of 18
million units in
March 2016.
We havedeveloped an
DC-AC inverter mounted in the new Priuson-board charger
based on our
technologies and cultivated know-how regarding EV
chargers developed since the 1990s. The resulting on-board
charger is mounted in the Prius Plug-in Hybrid.
In addition, we develop and produce inverters for electric
car air-conditioning compressors for HVs and other electricpowered vehicles. These inverters have been contributing toincreasing the product appeal of our car air-conditioning
compressors. (See Special Feature 2 on pages 26–29 fordetails.)
We have also leveraged our inverter technologies related
to electric car air-conditioning compressors and successfully
developed a highly efficient, low-cost inverter for hydrogen
circulation pumps. The new inverter has been adopted in
TMC’s MIRAI FCV.

(FY)

12

13

14

15

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