Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Business Activities

Business Activities

Materials Handling Equipment

P. 26–31

Automobile (Vehicle / Engine / Car Air-Conditioning Compressor / Electronics)

P. 32-37

Textile Machinery

P. 38

Business Structure

Materials Handling Equipment

Link toproduct
details

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

Medium-Term Direction of BusinessWe will work to develop and propose new products and services incorporating cutting-edge technologies through theproactive use of open innovation and co-creation with customers.
Our goal is to become the logistics solutions partner of the first choice for customers by meeting their wide-ranging needs
and helping them increase their logistics efficiencies based on the Toyota Industries Group’s comprehensive strengths coveringboth the lift trucks and logistics solutions fields.

Business Characteristics

Net Sales

Operating Profit

FY2020

FY2020¥1,436.3 billion¥102.2 billion

FY2021

FY2021

Strengths• An extensive logistics-related product lineup both for lift trucks(internal-combustion type, electric type, fuel cell (FC) type, etc.) andlogistics solutions products (automated storage and retrieval systems,
automatic guided vehicle (AGV) systems, automated lift trucks, etc.)• High technological capabilities, including those linked toenvironmental and safety performance• Production know-how that ensures high levels of quality andproduction efficiency• Global, well-developed production, sales and service networks• An extensive value chain encompassing in-house development andproduction of engines, motors and other key components; total
after-sales services including maintenance and inspections as well
as operational management; and sales financing operations offering
more options in sales• No. 1*1 in lift truck unit sales in the world• A wealth of experience and know-how as well as a global networkin the Logistics Solutions Business• Software development capability to create such systems as awarehouse management system

1,431.4 billion

109.9 billion¥¥

Materials Handling Equipment Sales(Thousand units)

300• An expansion of global logistics volume in line with an increase in
the world population and economic growth• Growing need for electric lift trucks and products with high fuelefficiency and low environmental impact following enforcement of
more stringent environmental regulations around the world• Rising need for higher logistics efficiencies prompted mainly by agrowth in e-commerce transactions as well as soaring labor costs
and labor shortages• Growing need for automation and labor saving driven by the
emerging need for contactless operations due to COVID-19• Increased recognition that logistics is an essential business

Risks• Restrained capital investment due mainly to a slowing economy
and disasters• Weaker sales due to intensifying competition• Change in business environment triggered by an expanding market
of low- to mid-priced lift trucks• Suspension of production caused by supply chain disruptions• Weaker demand for internal-combustion lift trucks resulting from
more stringent environmental regulations• Emergence of next-generation robotics products as an alternative
to lift trucks

26

Toyota Industries Report 2021

Toyota Material Handling Group (TMHG)
Toyota Industries assists customers worldwide in attaining
greater logistics efficiencies as a market leader in thematerials handling equipment and logistics fields bydelivering optimal logistics solutions based on its
comprehensive strengths to respond to their specific andever-changing needs on a global scale.
Under the TMHG management structure, we engage inthe Lift Truck Business under the TOYOTA, BT, RAYMOND,CESAB and Tailift brands. Mutually utilizing the development
and sales strengths of each brand, TMHG is promoting
business globally.
We basically carry out product development in three
regions, namely Japan, North America and Europe. Basedon this structure, we develop and manufacture products ineach region, which are matched to the specific local needs
and characteristics, and ensure quick product delivery tocustomers. At the same time, we seek greater productappeal by conducting in-house development andproduction of such key components as engines and motors,

200

100

Toyota Material Handling Group*1: Survey by Toyota Industries Corporation

Opportunities

Toyota Industries’ Materials Handling Equipment Business is
operated under a two-organization structure: Toyota
Material Handling Group (TMHG) responsible for the Lift
Truck Business and Toyota Advanced Logistics Group(TALG) engaging in the Logistics Solutions Business. TMHG
and TALG collaborate with each other to achieve overall
growth of the Materials Handling Equipment Business while
reinforcing individual businesses.

which greatly influence the performance of lift trucks. In
response to the enforcement of stricter environmental
regulations and growing eco-consciousness worldwide,
we are improving the energy-saving performance andenhancing our electric lift truck lineup. We are also
promoting the development of autonomous driving
technology as a response to growing needs for greater
logistics efficiencies mainly driven by labor shortages.
In addition to supplying high-quality products, weconsider our strength to be able to support customers
throughout our entire value chain that encompasses fromproviding after-sales services through our extensive
networks to offering sales financing operations. On the sales
front, we are offering products and logistics improvement
solutions optimally matched to individual customers’
logistics sites. Simultaneously, we are responding to needs
for fleet management that optimizes the operation ofmultiple lift trucks for customers conducting businessglobally. In terms of services, we assign experienced andhighly skilled personnel and utilize leading-edge information
technology (IT) to provide finely tailored services tocustomers. Our service personnel visit customers on aperiodic basis and provide maintenance services to prevent
troubles from occurring. When a problem does occur, theyswiftly make a visit to the customer and promptly takeappropriate action. We are also strengthening our internalsales financing operations mainly in Europe, the UnitedStates and other developed countries in order to flexibly
respond to customers’ diverse needs, including those forfund procurement, in the area of equipment sales.
Additionally, TMHG is collaborating with TALG to createsynergies between the lift trucks and logistics solutions
fields in development and other domains.

0
(FY)

17

18

19

20

Business Overview in Fiscal 2021

TMHG

21

The lift truck market in 2020 turned downward
except for China, where sales continued to increase.
Amid this operating climate, Toyota Industries
engaged in sales and after-sales service activities
matched to respective markets. However, unit
sales of lift trucks for fiscal 2021 were down 28,000
units, or 10%, to a total of 250,000 units from theprevious fiscal year. Meanwhile, as the need forhigher logistics efficiencies in warehouses is gettingstronger, underpinned by an expansion of the
e-commerce market, Toyota Industries made efforts
for reinforcement of the Logistics Solutions Businessthrough collaboration with subsidiaries in the
United States and Europe. Net sales in fiscal 2021
were roughly on par with the previous fiscal year at¥1,431.4 billion.

Toyota Industries’ Global
Lift Truck Market Share(Survey by Toyota Industries
Corporation, 2020)

TMHJ

TMHNA

TMHE

TMHI

TMHCN

Toyota Material
HandlingJapan

Toyota Material
Handling
North America

Toyota Material
Handling
EuropeToyota Material
Handling
International

Toyota Material
Handling
China

The Toyota Material Handling Group possesses several brands such as TOYOTA, BT and RAYMOND and engages inbusiness by dividing the world into five areas: TMHJ (Japan), TMHNA (North America), TMHE (Europe),
TMHI (Asia, Australia, etc.) and TMHCN (China).

ToyotaIndustries
16%

World No. 1

Main ProductsElectric lift truck

Reach-type electric lift truck

Electric low lift truck

Internal-combustion lift truck

Automated lift truck

27

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Business Activities

Toyota Advanced Logistics Group (TALG)
With accelerated expansion of the e-commerce market due
in part to the growing need for contactless operations as aresult of COVID-19, the need for logistics automation has
been on the rise across the world. This has entailed
increases in the number and size of distribution centers,
which in turn have necessitated solutions for moreadvanced logistics issues.
Amid this environment, we go a step beyond justproviding a broad range of materials handling equipment
and associated software programs and are reinforcing our
Logistics Solutions Business to more meticulously satisfy
each customer’s varying needs by leveraging our logistics
improvement know-how accumulated to date.
Under the TALG management structure, the Logistics
System Engineering Department of Toyota Material HandlingJapan, U.S.-based Bastian Solutions LLC and Netherlands-

based Vanderlande Industries Holding B.V. are collaboratingwith each other in development, sales and other activities toexpand business while leveraging their individual strengths.
Toyota Advanced Logistics Group

TALG
Logistics System
Engineering Departmentof Toyota Material
Handling JapanTALNA*2/
BastianVanderlande*2: Toyota Advanced Logistics North America (Holding Company of Bastian)Under TALG, the Logistics System Engineering Department of Toyota
Material Handling Japan, Bastian and Vanderlande work together topromote the Logistics Solutions Business on a global scale whileleveraging their individual strengths.

Main Products and Systems

Automated storage andretrieval system

Simple AGV

SorterBusiness Activities in Fiscal 2021
Despite dropping sharply due to COVID-19, the world’s lift
truck market grew overall in 2020 as evidenced by arecovery trend after bottoming out in the first quarter in
China and in the second quarter elsewhere. Over the fullyear, the market expanded considerably year on year in
China, but shrank slightly from the previous year’s level inJapan, North America, Europe and other emerging
countries. Amid this environment, we worked to enhance
the product appeal of our mainstay lift trucks and expand
sales. We also strove to offer reliable after-sales services,enhance responsiveness to large-order customers andprovide solutions for logistics issues through theintroduction of optimally packaged systems.
In the field of lift trucks, we made efforts to increase our
product lineup in each region and promoted thedevelopment of autonomous driving technology internallyand with external organizations. We also worked to reinforce
our IT-based services, enhance safety and augment ourcompetitiveness in the environmental field mainly throughelectrification in order to ensure a more accurate response
to individual customers.
With regard to engines to be fitted in the 2021 models ofsome internal-combustion lift trucks sold in North America,
we have not been able to obtain the country’s legally
mandated engine certification (as of June 30, 2021).
Consequently, we suspended the shipment of these models(gasoline/LPG type) in January 2021 and their production in

28

Toyota Industries Report 2021

High-speed storage andpicking system

Airport baggage handlingsystemJune 2021. We will work for early resolution of the issue andendeavor to receive certification by continuing to provide
relevant information to the U.S. environmental authority.
In the logistics solutions field, we have been fostering
cooperation in sales activities by mutually supplying
equipment and systems while encouraging each TALG
company to leverage its strengths to bolster business. We
have also been accelerating coordinated activities as TALG
such as promoting collaborative efforts in the planning anddevelopment fields. In April 2021, we established a newcompany, T-Hive B.V., in the Netherlands to develop aseamless control system for Toyota
Industries’ autonomous vehicles andsystems, such as automated guided
forklifts (AGF), automated guided
vehicles (AGV) and autonomous
mobile robots (AMR).
Meanwhile, Aichi Corporation,
which possesses the top brand*3 inthe field of aerial work platforms inJapan, made efforts to expand sales
in the electricity and communications
fields, while the market of specialpurpose vehicles declined steeply
due to restrained capital investmentin the leasing industry. As a result,
Aichi posted sales of ¥59.3 billion, up¥0.9 billion, or 2%, over the previous
fiscal year.
Aichi Corporation’s aerial*3: Survey by Aichi Corporation

Activities of TMHGn Japanese Market

In 2020, while an expansion of the e-commerce market
pushed up the demand for lift trucks, customers postponed
their capital investment projects due to COVID-19, and theJapanese lift truck market declined overall. Unit sales ofToyota Industries’ lift trucks were on par with the previous
fiscal year at 45,000 units in fiscal 2021, but still maintained
the top position*4 in calendar 2020 for the 55th consecutiveyear.
The diversification of customer needs, heightened on theback of an expansion of the e-commerce market, labor
shortages and growing safety and environmental
consciousness among companies, has further accelerated
amid the COVID-19 pandemic. As the leading manufacturerof materials handling equipment, Toyota Industries has beenproactively promoting the development and release of new
products that lead to resolving issues facing customers.
As with the automobile industry, where development has
been proceeding for cars equipped with advanced safety
technologies, the logistics industry is facing a growing needfor more widespread use of lift trucks equipped withfunctions to support safe operations. As a response, in April
2020 we added a safe operation assistance function, which
had been available as an option, to our mainstay GENEOseries internal-combustion lift trucks and gene B-series
electric lift trucks as a standard feature. Through asynergistic effect with the System of Active Safety (SAS)*5,
a proprietary safety system fitted in our main lift truckmodels since 1998, we will further help reduce accidents
caused by lift trucks.
Needs are also growing for the automation of materials
handling equipment to increase the efficiency of logistics
operations and make them
contactless. In cooperation
with All Nippon Airways
Co., Ltd., we have carriedout a test trial of ourautonomous towing tractors
to carry baggage at
Kyushu-Saga International
Airport. The test trial has
been a first*6 in Japan totake place in actual airport
Autonomous towing tractor
operations.
*4: Survey by Toyota Industries Corporation based on data published by Japan Industrial
Vehicles Association*5: A safety system that helps to prevent the overturning of a lift truck and load spilling. It
includes a function to ensure stability while rotating (swing-lock control of rear wheels)and a function to automatically control the angle of the mast when lifting cargo high up(mast tilt control).
*6: This test trial of baggage transportation in actual airport operations was the first of its
kind conducted in Japan after the application of the Japanese government’s guidelines
for autonomous operations within an airport.

n North American Market

With a year-on-year decline in the North American lift truck
market in 2020, Toyota Industries posted combined unit
sales of the TOYOTA and RAYMOND brands of 80,000
units, down 13% from the previous fiscal year, but still
remained the market share leader*7 in 2020. Meanwhile,

parts sales and orders for after-sales services remained
strong.
In 2020, Toyota celebrated 30 years of manufacturing in
the United States, with cumulative total production
surpassing 700,000 units. Along with enhancing the productoffering with the release of new electric lift trucks and ahigh-capacity internal-combustion lift truck, Toyota
proactively enhanced
optional features that are
based on ergonomics andserve to increase operability
and reliability. In response to
the growing need toautomate intralogistics,
Toyota launched AGFs fittedwith the latest navigation
system using Light Detection
and Ranging (LiDAR)
New AGF
technology. Additionally,
efforts related to the After Sales Service Evaluation andCertification (ASEC) program designed to increase thecompetitiveness of dealers and an initiative to improve
operational efficiency in a systematic manner haveproceeded steadily and produced positive results.
Raymond has also been active in releasing new
products and enhancing functionality to satisfy various
customer needs. The product lineup has been enhancedwith the release of an electric low lift truck with battery
management functionality andan automated lift truck for
intralogistics, which boasts
improved telematics
functionality and utilizes avision-guided technology of apartner company. Raymondhas also started sales of abattery management systemusing next-generation lithiumion batteries that have shorter
charging time and are morecompact and highly functional
Next-generation lithium-ion battery
than conventional lead-acidbatteries. Paired with theiWAREHOUSE fleet management system, it will increase theproductivity of logistics sites, optimize battery usage andsimplify maintenance work, thereby allowing cost reductions
throughout the lift truck lifecycle.
We have established a program to provide funding touniversity research projects with the aim of facilitating thedevelopment of next-generation technologies in thematerials handling equipment industry. In 2020, we
strengthened our collaboration with two universities forrespective research projects.
We will continue to leverage the strengths of each brandand reinforce technological development by utilizing
automation, telematics and other advanced technologies.
In addition, through closer collaboration with the Logistics
Solutions Business, we will accurately respond to
customers’ needs for greater logistics efficiencies.
*7: Survey by Crist Information & Research, LLC, 2020

work platform

29

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Business Activitiesn European Market

Following the previous year, sales in the European lift truck
market continued to decrease in 2020. Toyota Industries
posted unit sales of 77,000 units in fiscal 2021, down 18%
from the previous fiscal year. Conversely, orders for aftersales services and sales of parts remained steady.
In Europe, increases in logistics volume and small cargodelivery as well as a requirement for a shorter delivery time
have pushed up the need for increasing the efficiency oflogistics operations, mainly those of lift trucks, at distribution
centers. As a response, Toyota Industries offers the I_Site
fleet management system that connects more than 150,000
lift trucks to a network. Besides lift trucks’ operational
status, the system collects various information, such asdata on impact detection and battery consumption. By
analyzing the information and sharing the results withcustomers, the system not only achieves better lift truck
operation and lower costs but also helps to increase safety
awareness.

Notional image of Toyota I_Site

In terms of products, we are enhancing the lineup ofmodels equipped with lithium-ion batteries. We are adding
these models to low lift trucks and counterbalanced lift
trucks in order to meet the diversifying needs of customers.
Among internal-combustion lift trucks, a model fitted with
our internally developed engine that satisfies the latest EU
regulations is highly recognized in the market.

New electric low lift truck

Going forward, we will work to enhance the lineup ofmodels offering excellent environmental performance. At thesame time, to help customers achieve higher logistics
efficiencies we will respond to the needs for connected andautomated lift trucks, which are expected to grow further inthe future, by utilizing the latest technologies.

n ALOMA*8 and Chinese Markets

Toyota Industries covers the ALOMA markets of some 60
countries in 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,
RAYMOND and Tailift brands.
The environment surrounding materials handlingequipment in the ALOMA and Chinese markets underwent
an unprecedented change in 2020. These markets
temporarily turned downward from the previous year due tothe rapid spread of COVID-19, but many ALOMA markets
already began to recover in the latter half, showing a 96%
year-on-year growth over the full term. Similarly, the Chinese
market was quick to indicate a dramatic recovery and grew
sharply by 137% over the previous year. The diversificationof market needs has also accelerated further in the ALOMA
and Chinese markets, as seen in strong environmental
consciousness among morecustomers and a growing
awareness of logistics costs.
Against this backdrop, we
have been making various
efforts, such as initiating
sales of Enelore, a newlithium-ion battery
replaceable with lead-acidbatteries used in ourelectrified lift trucks,
releasing small electric handpallet trucks in more
New Enelore lithium-ion battery
countries and promoting theused lift truck business.
Jointly with dealers, Toyota Industries operates a
program to promote sales activities with a focus on logistics
improvement solutions and has been making proposals tovisualize customers’ logistics sites, improve their safety andreduce costs. Through the program, we have beenstrengthening our relationships of trust with customers andhave successfully expanded our business domains.
In the field of after-sales services, we have established astructure to provide swifter and more efficient after-sales
services by centrally and digitally managing information onlift trucks owned by customers and their history of repairs.
We are putting in place a structure to offer extensive aftersales services by establishing a system to certify dealers’
after-sales service facilities and offering programs to train
service staff so that customers can use our products withan increased sense of reassurance.
As a total solutions partner capable of satisfying diverse
logistics needs, we will make concerted efforts with dealers
in each country to undertake various initiatives.
*8: A LOMA is a Toyota Industries term for Asia, Latin America, Oceania, Middle East andAfrica.

Activities of TALGn Logistics System Engineering Department of
Toyota Material Handling JapanA sharp growth of the
e-commerce market inrecent years has increased
inquiries and orders for large
distribution centers. In
response, we are striving toprovide logistics solutions
that cover the entire logistics
process, encompassing thesystems and equipment ofVanderlande and Bastian.
Automated lift truck operating in afreezer warehouse
Logistics automation, inparticular, has drawn muchattention since a need for contactless operations grew instep with the spread of COVID-19.
In 2020, we put an automated lift truck to practicaluse in a freezer warehouse for the first time in Japan andlaunched a feasibility test jointly with Nichirei Logistics
Group Inc. Additionally, we have conducted a feasibility testwith TRUSCO Nakayama
Corporation on the AiR-T
autonomous intelligent
mobile robot that assists
picking operations in
distribution centers. At the
Aichi Robot Showcase, aproject of Aichi Prefecture topromote the implementationof service robots in society,we made proposals on
the use of the AiR-T in
AiR-Tan office building and at acoffee shop.
In dealing withdiversifying customer needs,
we have taken a stake in+Automation Inc., a startup
company providing awarehouse robotics system
subscription service.
Through this arrangement,
we have been examining
t-SORT sorting robot
new sales methods andhave reinforced the lineup ofsorting robots used in distribution centers.

n Bastianreceiving orders for anumber of large projects infiscal 2021.
Capitalizing on its
strengths in software andother technology
development, Bastian has
been promoting
collaboration with othercompanies in the Toyota
System operating in an e-commerce
Industries Group. For
distribution center
example, Bastian hasreceived, jointly with
Vanderlande, an order for a project of a leading e-commerce
operator in North America and started to provide software
programs to the Logistics System Engineering Departmentof TMHJ. In North America, Bastian has also been
accelerating its offering of logistics solutions to lift truckusers by reinforcing collaboration with dealers of the
TOYOTA and RAYMOND brands.

n Vanderlande

Vanderlande, offering logistics solutions globally, hasreceived many orders from leading companies in various
business categories for their projects to establish
distribution centers, capturing growing needs prompted by
COVID-19 for more advanced logistics in the e-commerce,
retail and parcel services sectors. For the warehouselogistics and parcel/postal services businesses, Vanderlande
has been accelerating system development respectively
optimized for operations ofindustry’s top companies
and focused businesscategories.
In the airport business,amid difficult operating
conditions Vanderlande
obtained orders for systems
for new terminals fromexisting airport customers aswell as long-term servicing
contracts based on its
High-speed sorting system used in the
e-commerce and apparel sectors
long-standing relationshipsof trust.
Vanderlande is also promoting collaboration to further
augment relationships with other companies within the
Toyota Industries Group, working together with the Logistics
System Engineering Department of TMHJ and Bastian to
introduce its systems into the markets in Japan and North
America, respectively.

Bastian, mainly operating in the North American market,
has been responding to the logistics automation needs ofcustomers in a broad range of fields, including the
manufacturing, retail and e-commerce sectors, andreceiving an increasing number of orders.
Based on a wealth of know-how accumulated in past
projects, Bastian has increased its capabilities for large
system development and integration, thereby successfully
Airport baggage handling system

30

Toyota Industries Report 2021

31

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Business Activities

VehicleAutomobile

Link toproduct
details

In the fields ranging from vehicle to engines, car air-conditioning compressors andelectronics, Toyota Industries continues to meet the expectations and trust of its
customers.

Business Characteristics

Net Sales

Strengths• An agile structure to undertake all aspects from planning anddevelopment to production within a plant (Vehicle)• Highest-level production efficiency and quality among all Toyotaaffiliated automobile body manufacturers (Vehicle)• Know-how on the development and production of diesel engines
and turbochargers (Engine)• Highly efficient production of high-quality gasoline engines,
including those for use in hybrid electric vehicles (HEVs) (Engine)• Excellent product development capability centered around fuelefficiency and car electrification (Car air-conditioning compressor)• Global top-share*¹ products for use in a full range of vehicles, frominternal-combustion vehicles to HEVs, plug-in hybrid electricvehicles (PHEVs), battery electric vehicles (BEVs) and fuel cellelectric vehicles (FCEVs) (Car air-conditioning compressor)

4.7 billion¥

We will contribute to TMC as a development andproduction base of compact sports utility vehicles (SUV)
by leveraging our comprehensive strengths derived fromthe highest level of safety, environment, quality, cost anddelivery (SEQCD) among all Toyota-affiliated automobile
body manufacturers and through greater collaboration
within the Toyota Industries Group.

Business Overview in Fiscal 2021

In fiscal 2021, sales of the RAV4 posted an increasein Japan, which was offset by a decline in sales
elsewhere. As a result, unit sales remained on parwith the previous fiscal year at 323,000 units. Net
sales decreased by ¥1.6 billion, or 2% year on year,to ¥88.3 billion.

200

Nagakusa Plant to Initiate Production of a PHEV
Model Added to the RAV4 Lineup

0

17

18

19

20

21

Engine Sales(Thousand units)

800
600

• Sales expansion in each sector in line with growth of the automobile
market

200

400

0
(FY)

17

18

19

20

21

Compressor Sales(Million units)• A drop in product competitiveness due to the yen’s appreciation ora rise in raw material costs

30• Suspension of production caused by supply chain disruptions

20*1: Survey by Toyota Industries Corporation

FY2021300• Increasing needs for fuel-efficient products due to stricter
environmental regulations and growing environmental
consciousness• Customers becoming less willing to buy fuel-efficient products
following less stringent environmental regulations

FY2021

Vehicle Sales(FY)• Shrinking of the automobile market caused by economic slowdown

FY2020¥17.2 billion(Thousand units)• Higher technological capabilities accumulated through thedevelopment and production of products for Toyota Motor
Corporation (TMC), external sales and internal use (Electronics)

Risks

FY2020¥613.8 billion

591.6 billion

100

Opportunities

Operating Profit¥• Monozukuri (manufacturing) using equipment created in-house to
produce high-quality products and flexibly accommodate changes
in production volume (Car air-conditioning compressor)• Development, production and top-level quality of electronic partsand devices for electrified vehicles (Electronics)

Medium-Term Direction of Business

10
0
(FY)

17

18

19

20

21

For the RAV4, which became the first Toyota vehicle in a
decade to receive the Car of the Year Japan 2019-2020
award, a PHEV version was added to the lineup in June
2020, and Toyota Industries’ Nagakusa Plant initiatedproduction of the new model. The RAV4 PHV is equippedwith a high-capacity, high-output lithium-ion battery, which
achieves a driving range of 95 km in the EV mode. The model
also realizes powerful acceleration and boasts greater fuelefficiency, thus offering superior environmental performance.
Moreover, a system to feed power externally, useful during
disasters and for outdoor activities, is a standard feature of
the RAV4 PHV.
The Nagakusa
Plant is the only
plant in Japanto manufacture
the RAV4 PHEV.
As such, we willcontinue to help
promote car
electrification in
RAV4 PHV
the future.

HARRIER Designed and Developed by Toyota
Industries Selected as Good Design
Best 100
The new HARRIER released by TMC in June 2020 was
included in the 2020 Good Design Best 100 under theGood Design Award program, receiving high recognition
for its exterior and interior designs that are both dynamic
and sophisticated, bringing every detail together at a highquality level.

32

Toyota Industries Report 2021

In addition to the design of the vehicle’s upper body,
Toyota Industries also developed its outer shape and interior.
In order tocontinue meetingcustomers’
expectations,
we will work tostrengthen ourvehicle planningand development
capabilities andensure quality.
HARRIER selected as Good Design Best 100

Presenting a RAV4 Concept Model at Tokyo Auto
Salon 2021
We have been engaging in activities to turn the RAV4, forwhich Toyota Industries carries out from development toproduction, into an even more exciting and appealing SUV.
As part of these activities, we presented the RAV4 5D*2ADVENTURE at Tokyo Auto Salon 2021. It is a concept
model exclusively created for mountain rescue operations
based on a survey on professional-use vehicles running in aharsh environment. In order to reach a destination reliably andsafely to start a rescue operation, the model is built from a
professional viewpoint and incorporates various equipment
and functions to enable driving in mountain areas underrough weather. We intend to utilize the outcome of these
activities in future development of the RAV4.
*2: Features five action patterns (“dimensions”) of rescue team members, enabled by thevehicle’s unique equipment and functions.

RAV4 5D-ADVENTURE

EngineMedium-Term Direction of BusinessIn line with the adoption of the Paris Agreement,
an international framework to address climatechange issues in 2020 and beyond as well as theannouncement by some countries to accelerate efforts
toward carbon neutrality, there is a growing demand forengines with even greater fuel efficiencies and cleaner
emissions. Amid this environment, we aim to contributeto a reduction of CO2 emissions by meticulously
meeting customer needs for diverse engine systems
and developing new, globally top-level technologies andproducts that also respond to car electrification.

33

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Business Activities*3: Development policy and method for vehicle creation based on a modular platform

Engines for Automobiles
n Diesel Engines

Needs for powertrains are becoming diverse dependingon the region. The requirement is also growing mainly inemerging countries for diesel engines, which have high fuelefficiency and excellent torque at a low speed, as a power
unit suited for SUVs and such commercial vehicles as pickup
trucks. Toyota Industries’ diesel engines are mounted in avariety of vehicles, including the Toyota Land Cruiser series,
the world’s renowned full-fledged four-wheel drive (4WD)model, and TMC’s Innovative International Multipurpose
Vehicle (IMV) series targeting emerging countries. Theirhigh performance and reliability have gained strong market
recognition. Currently, our mainstay products are in-line
4-cylinder GD diesel engines and V-type 8-cylinder VD
diesel engines. The GD diesel engine is equipped with aturbocharger that provides significantly better performancethrough the adoption of new technologies, such as a ballbearing-type system.
As a global engine supplier, we will continue to undertake
entire operation from development to production andsupply diesel engines that can win the heart of customers
worldwide.

2.5-liter A25A engine for HEVs

Turbocharger for gasoline engines

Engines for Industrial Fields

Link toproduct
details

High-output GD diesel engine and new turbocharger

n Gasoline Engines

Our Toyota New Global Architecture (TNGA)*3 gasoline
engines, namely the 2.5-liter A25A and 2.0-liter M20A, aremainly fitted in the RAV4 and HARRIER, which are achievingrobust sales. Developed based on the TNGA concept,
these engines offer both excellent driving performance andenvironmental performance. Responding to the advancementof car electrification, we have also added an HEV version of
the A25A engine to our lineup.
In April 2021, we also started production of aturbocharger for gasoline engines mainly fitted in the Lexus
RX and Crown. We are working to steadily increase the34

Toyota Industries Report 2021

Medium-Term Direction of BusinessIn the Car Air-Conditioning Compressor Business,
we leverage our core compression technology andhave become an innovative component supplier amid
an expected advancement in car electrification andautonomous technology.
We will further enhance our capability to develop
products that offer excellent fuel efficiency, quieter
operation, compactness and light weight. At the sametime, with the aim of satisfying needs of a broader
variety of customers, we will utilize our accumulated
technologies to expand our development domain into
core components for drive systems.

In fiscal 2021, unit sales of car air-conditioning
compressors decreased 3.52 million units, or 11%,from the previous fiscal year to 27.51 million units due
mainly to lower sales in North America and Europe.
Net sales were down ¥26.6 billion, or 8%, from theprevious fiscal year to ¥301.6 billion.

Development Efforts Centered around
Fuel Efficiency and Car Electrification

TOPIC

Even though growth in the car air-conditioning compressor
market is currently slowing down due to the stagnating
automobile market, we expect continued growth over the
medium term on the back of expanding automobile sales andan increase in the number of vehicles fitted with an air
conditioner. Unit sales of electrified vehicles, in particular, areexpected to grow significantly for the foreseeable future as
automakers aggressively roll out new models toaccommodate stricter fuel efficiency regulations in respective
countries and expanding customer needs. Amid thisenvironment, we will further reinforce product developmentfor not only compressors for internal-combustion vehicles,
which are still mainstay products as of now, but also
compressors for electrified vehicles, for which we anticipate
stronger demand.

Participating in a Verification Test on
Engines for River Drainage Pumps

n More Compressors with High Fuel Efficiency
to Receive Off-Cycle Credits

Toyota 1ZS diesel engine and turbocharger

In April 2021, Toyota Industries was selected as anengine manufacturer for a project to develop,
introduce and utilize mass product drainage pumps,
for which the Ministry of Land, Infrastructure, Transport
and Tourism publicly solicited participants. The project
aims to demonstrate a new system to operate riverdrainage pumps, which uses multiple diesel enginesof mass-produced vehicles instead of a conventional,
dedicated large diesel engine. Toyota Industries’ 1GD
diesel engine has been approved for the project.

n Strengths of Toyota Industries’ Electric
Compressors
CSR Material Issue

Business Overview in Fiscal 2021

Toyota Industries’ engines are highly renowned for theirreliability and excellent environmental performance inindustrial fields as well. These engines are used for a wide
variety of applications, including our lift trucks, and adopted
by many manufacturers of GHPs*4, CHPs*5, generators andconstruction machinery. These engines offer downsized
displacement compared with conventional models withequivalent output, resulting in higher fuel efficiency, cleaner
emissions and a reduction in size.
*4: S hort for gas heat pump; air conditioner driven bya gas engine*5: S hort for combined heat and power;
co-generation system

Car Air-Conditioning Compressor

More stringent fuel efficiency standards have been enforced
across the world, pushing the need for higher fuel efficiency
both for internal-combustion vehicles and electrified vehicles.
In the United States, our SES series for internal-combustion
vehicles became the industry’s first compressor to beapproved under the country’s off-cycle credits program. The
program gives off-cycle credits to technologies that caneffectively improve fuel efficiency. Since receiving the first*6
accreditation, we have acquired credits for our compressors
for electrified vehicles as well, and the number of models
equipped with these compressors has been growing.

Since launching the world’s first*6 mass production of electriccompressors in 2003, our products have been used in HEVs,
PHEVs, BEVs and FCEVs of Toyota, Ford, Daimler, Honda,
Nissan and other automobile brands. We have been
undertaking efforts to further increase the appeal of thesecompressors based on our technology and know-how
accumulated through the development of a broad range ofmodels. Among various electrified vehicles, BEVs in particular
are facing the growing need for higher electric efficiency whilea heater is turned on as well as for cooling heat-emitting key
components, such as batteries. In response, we have beendeveloping and manufacturing high-capacity types byleveraging our strengths represented by high efficiency andreliability.
In addition to enhancing product appeal, we plan tofurther reinforce our capability to support automakers, forexample, by proposing solutions to issues related to an
automobile as a whole, and ultimately expand sales.
*6: Survey by Toyota Industries Corporation

Our Strengths inElectric Type

Common to all electriccompressors

Unit sales in fiscal 2021 totaled 765,000 units,a decrease of 42,000 units, or 5%, from theprevious fiscal year due to declines in sales of GD
diesel engines and M20A gasoline engines. Thanks
to an increase in sales of foundry parts, however,net sales increased by ¥1.4 billion, or 1% year on
year, to ¥139.9 billion.

number of models equipped with this turbocharger.
We will further improve the quality and productivity of ourgasoline engines and turbochargers used in these engines
and contribute to the creation of “ever-better cars” by TMC.

Electric compressors
for BEVs

Business Overview in Fiscal 2021

Our Initiatives

Broad product lineup

Applicable to a variety of vehicle
models from compact to luxury cars

Higher efficiency in power
consumption / Lower noise/ Less vibration

Design with our patented
technology while ensuring productquality and performance in mass
production by leveraging precise
machining/assembly technology

Support capability toautomakers

Proposal of problem solutions toautomakers

Prevention of radio
disturbance on homeelectrical appliances whilecharging BEVs

Improvement of inverter performanceachieving lower electromagnetic
noise

Improving electric
efficiency while a heater isturned on

Development of high-efficiency
compressors for heat pump air
conditioning system

Cooling such devices asbatteries

Expanding our business field todriving components with reliabilityn Utilizing Compression Technology to Extend
Our Role into the Field of Core Components
for Drive Systems
CSR Material Issue

Going a step beyond the cooling functionality of car airconditioning compressors, we have utilized our compression
technology accumulated to date to develop and manufacture
air compressors, which take in and compress air to efficiently
supply the oxygen necessary to generate power, as well ashydrogen circulation pumps. We aim to play a role in realizing
a hydrogen-based society by contributing to an improvementin the performance of FCEVs through the development ofthese components.

35

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Business Activities

TOPIC
The new MIRAI FCEV released by TMC in December
2020 uses an air compressor and hydrogen circulation
pump newly developed by Toyota Industries. The aircompressor is the world’s first*7 mass-produced
product to adopt a centrifugal method using a
movable roller-type traction drive unit. Not only does
the product achieve a 24% compression efficiency
improvement, 35% weight reduction and 45% size
reduction compared with the previous model but it
also contributes to the higher output of the new
MIRAI. The hydrogen circulation pump adopted a newseal structure that offers better corrosion resistance.
This makes it possible to change the material used forthe pump from stainless steel to aluminum, thereby
realizing a 41% weight reduction.

Electronics

High-precision machining and assembly technologies
are essential in realizing high quality and the superior
performance of products. Toyota Industries realizes highspeed and high-precision machining by leveraging its
know-how accumulated through responding to the stringent
demands of automakers worldwide and by developing
devices from processing machines to associated cutting
tools in-house.

Medium-Term Direction of Business

Establishing Stronger Global Production and
Supply Structures
In step with the move toward more stringent fuel efficiency
regulations and car electrification, the car air-conditioning
compressor market is expected to witness fluctuations
in demand for compressors both for internal-combustion
vehicles and electrified vehicles. In response, we arebuilding a production structure less vulnerable to changes in
production volume through such measures as automating
our plants to save labor, designing mixed lines that enable
the production of a wide variety of products and creating aframework to increase production capacities in a phasedmanner.
Meanwhile, we expect the rapid spread of electrified
vehicles in China driven by the country’s new energy
vehicles (NEV) regulation*8. Accordingly, we will make sure tocapture booming demand by promoting the local productionof electric compressors. We have already initiated local
production at TD Automotive Compressor Kunshan Co.,
Ltd. (TACK) in March 2020 and at Yantai Shougang TD
Automotive Compressor Co., Ltd. (YST) in June 2021.

*7: Survey by Toyota Industries Corporation

Oxygen-supplying air compressor

Production-Related Strengths Underpinning
Quality and Performance

Hydrogen circulation pump

*8: R egulation in China mandating automakers to produce a certain percentage of BEVs andother new energy vehicles

Worldwide Bases of Car Air-Conditioning Compressors (As of March 31, 2021)

TDDK
DNDE

Germany

Germany

YST

DICH

MACI

China

China

U.S.A.

Car electrification is steadily progressing in keepingwith the enforcement of more stringent environmental
regulations and growing energy-saving consciousness
among customers. The Electronics Division willcontribute to car electrification in a broad range offields, from offering on-board power source devices toimproving social infrastructure through the provisionof charging stands and systems to feed electricity
externally.

Italy
SUBROS

TACK

India

China

Main control
standCharging stand for PHEVs and BEVs

Business Overview in Fiscal 2021
Net sales of electronics products expanded, primarily
supported by sales of on-board chargers for PHEVs
and BEVs.

Contributing to Car Electrification
Toyota Industries develops and manufactures on-board
power source devices, including DC-DC converters, onboard chargers and AC inverters, and charging stands. We
sell these products mainly to TMC and other automakers
across the world.
A DC-DC converter converts the high voltage of onboard batteries into a lower voltage level to supply power tostandard electrical devices such as lights and wipers. Our
DC-DC converters are fitted in the Prius, Aqua and othermajor electrified vehicles. By utilizing such technologies as
the world’s first thick copper substrate*10, we have reduced
the product volume and weight.
An on-board charger converts AC voltage from thepower grid into DC voltage in vehicles and is necessary forcharging PHEVs and BEVs, for which the market is expected
to expand in the future. We offer chargers compatible with awide range of voltages to enable their use in various parts of
the world.

DIAM

TICO

Japan

*10: Survey by Toyota Industries Corporation

Sub-stand

U.S.A.

DNTS

In addition, we have been
contributing to car electrification
also in terms of infrastructure bydeveloping public charging stands for
PHEVs and BEVs.

Helping to Increase the Competitiveness of Our
Electrified Products
We will leverage our technology and know-how cultivatedin the development of vehicle power source devices toengage in the development of electronic components in otherbusinesses as well, such as materials handling equipment
and textile machinery, and to increase the appeal of our
products. Through these efforts, we intend to spur greatersynergistic effects among our businesses in moving ahead
with electrification.

Use of an Electrified Vehicle as a Power Source
during a Disaster
CSR Material Issue

In recent years, there has been a growing public attention to
the use of high-capacity batteries of electrified vehicles asa power source. The 1.5-kW type AC inverter, in particular,
can operate appliances that require more power, such as
rice cookers and hot plates, and has drawn much attention
as an emergency power source in a disaster in addition to
camping, outdoor events and other applications.
In July 2020, we conducted a disaster prevention drill
using the power source functionality of an AC inverter, which
is fitted in the RAV4 PHV manufactured at the Nagakusa
Plant. During the drill, we used the AC inverter to power
multiple electric appliances simultaneously, such as a radio,
TV, notebook PC, smartphone charger, lighting device,electric fan, refrigerator, heater and hot-water pot, andverified its usefulness as a power source.

TACG

U.S.A.
TICA

U.S.A.

TACI

Indonesia

DNBR

BrazilConsolidated production bases

Licensed manufacturers

DC-DC converter

On-board charger

Technical service stations

Toyota Industries’ car air-conditioning compressors are widely adopted by automakers around the world, garnering the No. 1*9 position in global sales.
*9: Survey by Toyota Industries Corporation

36

Toyota Industries Report 2021

Disaster prevention drill using AC inverter’s power source functionality

37

Textile Machinery
Carrying on the philosophy of founder Sakichi Toyoda, which reflects his strong
commitment to manufacturing, Toyota Industries responds to a broad range of needs with
its extensive product lineup, from air-jet looms, for which we enjoy the world-leading
market share* in unit sales, to ring spinning frames and roving frames.

Business Characteristics
Strengths• Broad product lineup both in the spinning and weaving machinery
fields• World-leading market share* in unit sales of air-jet looms

Opportunities• A rise in textile demand in line with an increase in the world
population• Further increasing applications in industrial textile products• Increasing need for high-quality and highly functional yarn andtextile products, following the economic growth of emerging
countries

Risks• Changes in each government’s policies concerning promotion of
the country’s textile industry• Weaker sales due to intensifying competition• A decline in capital investment due to economic slowdown and raw
cotton and/or yarn price fluctuations

Medium-Term Direction of BusinessWith growing environmental consciousness worldwide,
needs are expected to increase further for textile
machinery offering superior environmental performance.
Toyota Industries’ products are highly acclaimed bycustomers for their excellent reliability and productivity
as well as energy-saving performance. We willcontinue to develop energy-saving and other innovativetechnologies and seek to achieve further growth andevolution as a leading manufacturer of textile machinery.

Business Overview in Fiscal 2021
On the whole, the environment surrounding the textile
machinery market continued to be difficult. Unit salesof air-jet looms decreased 2,100 units, or 31% year
on year, to 4,700 units. Combined with a decrease insales of quality measurement instruments for fiber,yarn and fabric, net sales were down ¥20.9 billion, or
34%, from the previous fiscal year to ¥40.8 billion.

Growing Needs for Air-Jet Looms
Toyota Industries’ air-jet looms are adopted by customers in
China, India and many other countries. Produced fabrics areused broadly for towels, shirts and other clothing purposes

38

Toyota Industries Report 2021

* Survey by Toyota Industries
Corporation

Net Sales

Operating Profit

FY2020

FY2020¥61.7 billion¥2.9 billion

FY2021

FY2021• Global, well-developed service network• Ability to develop products that excel in reliability, energy-saving
performance and versatility

Link toproduct
details

40.8 billion

1.1 billion)¥(¥

Air-Jet Loom Sales(Thousand units)

10
8
6
4
2
0

(FY)

17

18

19

20

21

as well as in industrial products such as vehicle airbags.
Recently, the need has been on the rise for fabrics such as
woven glass fiber for use in smartphone substrates, and it
is anticipated that applications for air-jet looms will expand
further.

MOSAIC Yarn Spinning Device Receiving anAward at the National Commendation forInvention
Our MOSAIC yarn spinning device, offered as an option to
the RX300 high-speed ring spinning frame, received theMinister of Economy, Trade and Industry Award at the 2020
National Commendation for Invention. The award recognized
the device’s ability to flexibly change the mixing ratio of
two different types of roving materials in one yarn and tocompletely switch over between the two types, such as bychopping and reconnecting the roving materials. The resulting
MOSAIC yarns enable unconventional, diverse fabric designs,
helping to create a new market in the textile industry, mainlyin the apparel field.
Yarn made using the MOSAIC yarn spinning device
Material A +Material B

Material B

Material A

Material B

A complete switchover between two colors (types) is
possible with varying thickness.
The gradation of two colors (types) is possible via a
gradual switchover.

<Reference: Normal yarn>
Consistent thickness and twisting

Product sample made with
MOSAIC yarn