Toyota Industries Report 2013

Business Activities
Materials Handling EquipmentP

26 − 31

AutomobileP

32 − 36

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

Logistics

P

37− 38

Textile MachineryP

39− 4025

Materials Handling
Equipment
As a market leader with extensive knowledge of global logistics needs, Toyota Industries provides a rangeof advanced materials handling equipment, including lift trucks, and outstanding logistics solutions tocustomers worldwide.

Corporation, one of the world’s largest manufacturers of lift
truck attachments*1, into Toyota Industries’ consolidated
subsidiary. As the lift truck market primarily in emerging
countries continues to expand and logistics needs
become increasingly diverse, demand for suchattachments is expected to grow. By adding Cascade’s
attachments to our lineup, we aim to expand our businessdomain, respond to a broader range of customers’
logistics needs and achieve further growth of the Materials
Handling Equipment Business.

Business Overview in Fiscal 2013

■ Materials Handling Equipment Sales(Thousand units)

200
150
100
50
0

09

(FY)

10

11

12

13

■ Toyota Material Handling Group Organization Chart

TMHG
RegionOrganization

Brand

Japan

North America

EuropeALOMA*

China

TMHJ

TMHNA

TMHE

TMHI

TMHCN

Toyota Material
Handling Japan

Toyota Material HandlingNorth America

Toyota Material
Handling Europe

Toyota Material
Handling International

Toyota Material
Handling China

TOYOTATOYOTARAYMONDTOYOTABT
CESAB

TOYOTABTRAYMONDTOYOTABTRAYMOND* ALOMA is a Toyota Industries term for Asia, Latin America, Oceania, Middle East and Africa.

26

Toyota Industries Report 2013

*3: Surveys by Japan Industrial Vehicles Association and Toyota Industries Corporation,
2012	Introducing Products Excellent inEnvironmental Performance and Work
Efficiency

Business Activities in Fiscal 2013
Globally, the lift truck market in 2012 remained on par withthe previous year. In Japan, we focused on expanding
sales in the manufacturing industry, where improved
business sentiment has been boosting capital investment,
as well as in such industries as transportation,
warehousing and construction. In Europe and North
America, while striving to capture the diverse needs ofcustomers by rolling out new products and services, we
proactively participated in various exhibitions to appeal theexcellence of our products and services to a wider
audience. Our efforts in emerging countries have been
aimed at reinforcing both our production and sales
capabilities. As part of these efforts, we have completed
construction of a lift truck production plant in Brazil, whichis scheduled to start operations in October 2013, and arereleasing products manufactured in plants in China to the
ALOMA* markets.
In March 2013, we made U.S.-based Cascade

In 2012, the Japanese lift truck market achieved year-onyear growth as the government’s subsidy program for eco
cars stimulated an upturn in capital investment in the
manufacturing industry, including the transportationequipment sector. Toyota Material Handling Japan (TMHJ)
worked to expand sales in the manufacturing industry as
well as in such industries as transportation, warehousing,construction and agriculture, forestry and fisheries. As aresult, unit sales in fiscal 2013 increased 4% year-on-year
to 33,000 units. TMHJ secured a 44.4% share of theJapanese market in 2012, a record high, and maintained
its top position*3 for the 47th consecutive year.

Lift truck fitted with Cascade attachment

As for the Materials Handling Engineering Business,
which is represented by automated storage and retrieval
systems and automatic guided vehicles (AGVs), we arecommitted to meeting a wide range of needs by providing
consulting services for customers’ logistics-related issues
as well as assisting them with installation and operation ofequipment. In response to the growing need for greater
efficiency in the handling of shipping containers spurred bya rise in port logistics volume, we developed an AGV
system for cargo containers*2 based on a pool oftechnologies we have accumulated in the field of AGVs
over the years. The new AGV system is now playing asignificant role in increasing operational efficiency andimproving the working environment of container terminals
at ports.
In the field of aerial work platforms, demand fell in theelectric power industry, our principal customer in Japan,
as power companies cut back on capital investment. In
the leasing and railway industries, however, demand grewin line with such factors as an increase in facility
replacement. Accordingly, Aichi Corporation, which
possesses the top brand of aerial work platforms in Japan,
posted higher sales. Aggressive sales promotion activities
also led to a rise in sales outside Japan. On the whole,sales exceeded the previous fiscal year’s level.
*1: Devices that are attached in place of forks of lift trucks for directly grabbing or
rotating goods for enhanced operability and logistics efficiency*2: See “Special Feature 1” on pages 16–20.

Launch of New Electric Lift Trucks
TMHJ released two model changes of electric lift trucks,
the GENEO-R in May 2012 and the High Pick Lift in
December 2012, for use in indoor logistics sites of abroader range of customers mainly in the mail order, foodand warehousing sectors. These models feature significant
upgrades, including a completely new drive system, andmeet the requirement for longer continuous operation.

GENEO-R

Materials Handling Equipment

In the materials handling equipment market,
sales remained strong in Japan and North
America while growth slowed in Europe, China
and some emerging countries. On the whole,sales were on par with the previous year. Amid
this environment, Toyota Industries reinforced thedevelopment, production and sales structuresand rolled out products matched to respective
market conditions. Although sales of ourmainstay lift trucks outside Japan remained at
the previous fiscal year’s level, we successfully
achieved higher sales in Japan. As a result, unit
sales for fiscal 2013 increased slightly to a totalof 185,000 units over the previous fiscal year. Net
sales rose ¥25.7 billion, or 5%, to ¥596.4 billion.

No. 1 Market Share*3 in Lift Truck Sales

Business Activities

Toyota Material Handling Group (TMHG)
As a market leader with extensive knowledge of logistics
needs across the world, Toyota Industries provides a fullrange of lift trucks and other materials handling equipment
as well as logistics solutions to customers worldwide.
Under the TMHG management structure, we engage
in business under the TOYOTA, BT, RAYMOND and
CESAB brands. Mutually utilizing the sales anddevelopment strengths of each brand, TMHG is promoting
business expansion on a global scale.

Japanese Market

High Pick Lift

Development of Fuel Cell Lift Trucks
In December 2012, TMHJ initiated a feasibility test of its
fuel cell lift trucks in Kitakyushu, Fukuoka Prefecture. A fuelcell produces power through a chemical reaction betweenhydrogen and oxygen in the air and thus emits
considerably less CO2. Because refueling is completed inabout three minutes, fuelcell lift trucks operatecontinuously without theneed for recharging or
replacing batteries,
thereby greatly improving
work efficiency
compared with electric
lift trucks.
Fuel cell lift truck27

	Initiative Aimed at Upgrading Level ofService
In September 2012, TMHJ held the 1st TMHJ Service
Skills Contest aimed at improving the level of service ofdealers. Service representatives of the 40 dealers acrossJapan participated in the contest. Through this event,
TMHJ intends to enhance the skills of its service staff,
increase their awareness and deliver quality services thatbring greater satisfaction to customers.

showcases optimum logistics know-how to customers inan easy-to-understand manner through upgraded displays
and other showroom features.

North American Market
Maintaining Top Market Share*	Highly Acclaimed TOYOTA andRAYMOND Brands
In recognition of providing best-in-class products as well
as optimum logistics solutions and services, Plant
Engineering magazine awarded the 2012 Product of theYear gold and silver award in the material handlingsystems category to TOYOTA’s 4-wheel AC electric lift
truck and RAYMOND’s new 8000 series pallet trucks,
respectively.

* Survey by Peerless Media Research Group, 2012

	Aiming for Industry-Leading ProductOfferings and Customer-Oriented
Services
TMHNA will look for further synergies in the coming year toensure the full power of both the TOYOTA and RAYMOND
brands is utilized. TMHNA will continue to offer industryleading products and total solutions-based offerings
enhancing customer efficiency and productivity.

Materials Handling Equipment* Survey by Crist Information & Research, LLC, 2012	Proactively Launching New Products andServices
Service Skills Contest

Kaizen Solutions Based on Logistics
Know-How

Toyota expanded its product offering in fiscal 2013 with agalvanized chassis option and made it available on its
walkie rider and electric pallet trucks for customers
operating in environments where resistance to rust is vital.

TMHJ participated in LOGIS-TECH TOKYO 2012,
an exhibition held in Tokyo in September 2012. Under
the theme of “Bringing Greater Efficiency in Logistics
Business,” TMHJ presented kaizen (continuous
improvement) examples for logistics that utilize the Toyota
Production System (TPS) and its initiatives inenvironmental and safety-related fields. The Toyota L&F
Customer Center in Chiba Prefecture, which wasreopened in the same month after undergoing renovations,28

Toyota Industries Report 2013

RAYMOND 8000 series pallet truck

TopicsIn 2012, Raymond celebrated its 90th anniversary as anindustry leader in optimum warehouse equipment for
warehousing and materials handling operations. On thisoccasion, more than 3,000 employees and community

TOYOTA 7HB electric pallet truck with new galvanized chassis option

TMHJ booth at LOGIS-TECH TOKYO 2012

Business Activities

The North American lift truck market remained strong in
2012. Toyota Material Handling North America (TMHNA)
remained the market share leader* in fiscal 2013 withcombined unit sales of TOYOTA and RAYMOND brands
of approximately 59,000 units, which was on par with theprevious fiscal year.
Toyota, as a full-line supplier of lift trucks, remained themarket share leader* for the 11th consecutive year, andRaymond continued to hold its number one* market shareposition in narrow aisle electric lift trucks.

In independent studies of lift truck users*, TOYOTA lift
trucks and genuine parts ranked highest in quality, value
and safety.
For the fourth year in a row, Toyota was again named a
Green Supply Chain Partner by Inbound Logistics
magazine, chosen in part for its environmentally friendly
initiatives and continued dedication to supply chain
sustainability.

Also introduced in fiscal 2013, the new RAYMOND
8000 series pallet trucks feature significant increases inmaterial strength that enable these trucks to meet heavyduty application needs. Features also include enhanced
environmental operations through Raymond’s EcoPerformance solutions system for space efficiency andfleet optimization solutions, better operability thanks to aroomier operator compartment and reinforced
components for reduced wear.
Raymond also fitted its iWarehouse fleet management
system with new features, which provide warehousemanagers with increased visibility of equipment availability
and operational conditions on a real-time basis, further
increasing customer productivity.

members were invited for an open-house celebration
held in October 2012.

Raymond total solutions were showcased at ProMat2013 in Chicago, Illinois, in January 2013. Raymond’s
Eco-Performance system was featured in a mock
warehouse with RAYMOND lift trucks in operation.
Raymond also participated in two ProMat educationalsessions, Ecological and Economical Material Handlingand Lift Truck Technology Advances Material Handling.
It was estimated that over 30,000 people attended theexhibition from across the world.

Raymond booth at ProMat 201329

European Market

ALOMA* and Chinese Markets
	Increasing Unit Sales through Proactive
Market Development

The lift truck market in 2012 was marked by greater
uncertainty across the European economies, slightly
underperforming the previous year. Amid these adverse
conditions, Toyota Material Handling Europe (TMHE)
engaged in sales expansion activities with a targetedmarket-to-market strategy while also working to diversify
its panel of services and solutions. Nevertheless, TMHE
posted sales of 58,000 units, a decline of 2%.

Toyota Material Handling International (TMHI) covers the
ALOMA* markets of Asia, Latin America, Oceania, theMiddle East and Africa, while Toyota Material Handling
China (TMHCN) covers the Chinese market.
In 2012, TMHI and TMHCN markets registered slower
expansion due to the deceleration of growth in emerging
countries. However, supported by the continuous efforts
by both organizations to develop these markets, annual
sales in fiscal 2013 reached 35,000 units, an increase of
3% compared with the previous fiscal year.

SpotMe warning system

	Proactive Sales Expansion Activities andMaking Appeals at Exhibitions

The BT Levio Silent powered pallet truck and the BT Lifter
Silent hand pallet truck received the Quiet Mark
recognition for their quiet features by the U.K.-based
Noise Abatement Society. Defined at below 60 decibels,
this level of quietness is considered to allow conversations
without having to raise voices.
TMHE production sites in Sweden, France and Italy
proactively engage in health and safety management
activities. In recognition of risk management education at
the production site in Sweden, all three sites were certified
in May 2012 with OHSAS 18001, an Occupational Healthand Safety Assessment Series, by Bureau Veritas, which isone of the world’s largest third-party inspection andcertification organizations.

* ALOMA is a Toyota Industries term for Asia, Latin America, Oceania, Middle East
and Africa.

	Reinforcing Production and Sales
Operations in Growing Markets
Brazil is the largest industrial vehicle market in Latin
America and is expected to grow further; therefore, TMHI
has enhanced sales activities and the sales and service
networks. The construction of a new production plant
was just completed in São Paulo state. In October 2013,
the new plant will commence production of internalcombustion lift trucks, for which there is strong market
demand.

Initiatives to Expand Market Share

LogiMAT 2013

	Proactively Launching New Products
TMHE unveiled the Traigo 80 electric lift truck, whichfeatures excellent energy efficiency and ensures safety,
and engaged in sales activities throughout Europe.
TMHE also commenced sales of SpotMe, a warning
system for a safe workplace. This system alerts truck
drivers of the potential danger of collision with a flashinglight when a sensor detects the presence of lift trucks orpedestrians in a specific area, contributing to safety at lift
truck operating environments.

30

Toyota Industries Report 2013

In January 2013, TMHE completed the 1-channel, 2-brandstructure* of distributors in primary countries in Europe.
In addition to stronger sales and service networks, thisstructure is designed to expand TMHE’s market sharethrough enhanced appeal of its products and service
quality. Therefore, optimum market-to-market logistics
solutions and close collaboration with customers will be
key success factors to meet diverse needs.
In addition, TMHE works to strengthen its productlineup by launching a counterbalanced lift truck equippedwith lithium-ion battery technology as well as to upgrade
the Toyota I_Site fleet management solution. In this way
and others, TMHE will strive to enhance product appeal
both in terms of hardware and software aspects.
* To integrate separately operated sales channels for TOYOTA- and BT-brand lift trucks

In 2013, an upward trend in the demand of lift trucks in the
ALOMA and Chinese markets is expected. TMHI and
TMHCN will continue to enhance capabilities in terms ofproviding a full range of excellent lift trucks and services tomeet customer expectations.

TopicsThe TMHI Distributor Conference held in
Yokohama, Japan, in September 2012 wasattended by 63 representatives from Toyota, BT
and Raymond distributors spanning 32 countries.
The conference included the confirmation of themid- to long-term vision and specific action plans,
and a common approach for future directions was
confirmed. Also on the agenda were a presentation
on policy management at distributors, a tour of the
Toyota L&F Customer Center and the awards
ceremony for the 2011 TMHI Distributor Award
Program. During the conference, participants
pledged to work harder to achieve objectives
based on the new slogan “Lift Beyond Together.”

Materials Handling Equipment

In fiscal 2013, TMHE continued its proactive sales
expansion activities in the area of logistics solutions. Witha high-quality, abundant product lineup and strong sales/
service network throughout Europe, TMHE successfully
obtained large-fleet orders.
TMHE also attends various exhibitions to pitch its
full-line products and excellent servicing capabilities
directly to customers. In fiscal 2013, TMHE exhibited at
CeMAT RUSSIA 2012 in September under the banner“Innovative Solutions” as well as at LogiMAT 2013, which
was held in Germany in February, under the theme of“Innovation Meets Evolution.” At both exhibitions, TMHE
appealed its comprehensive capabilities, including a wide
range of products, tailor-made service system andlogistics solutions.

	Excellent External Recognition

	Upgrading Product Lineup and Services

Business Activities

	Increasing Unit Sales by Grasping
Market Trends

Toyota Material Handling (Shanghai) Co., Ltd. (TMHS) has
worked to strengthen its marketing capabilities and further
enhance its sales and service networks.
In addition, since February 2012 TOYOTA-, BT- andRAYMOND-brand lift trucks produced in China are sold in
the ALOMA market in an effort to expand sales by meeting
market-specific needs.

Production plant in Brazil and completion ceremony

In India, TMHI has been continuously strengthening its
sales and service capabilities through Toyota Material
Handling India (TMH India) and augmenting sales
expansion activities in order to achieve an increase inunit sales.
In China, Toyota Industry (Kunshan) Co., Ltd. (TIK)
engages in production of TOYOTA-brand lift trucks.
At BT Manufacturing (Foshan) Co., Ltd. (BTMF),
production of BT-brand low lift trucks and stackers hascommenced in January and June 2012, respectively. In
addition, Raymond Manufacturing (Dalian) Co., Ltd. (RMD)
has begun manufacturing RAYMOND-brand compact
towing tractors in February 2012. On the sales side,

TMHI held sales trainer training sessions in
Singapore and Dubai in January 2013 and São
Paulo in March to reinforce marketing activities andimprove customer satisfaction in these countries,
with 57 managers from 36 countries participating.

31

Automobile

In the fields of vehicle assembly, engines, car air-conditioning compressors and car electronics,
Toyota Industries offers a lineup of reliable products to meet the expectations and trust of its customers.

currently a standard feature of Prius + vehicles marketedin Europe.
This product retains the warp-free, smooth andbeautiful surface quality typical of a glass roof yet isapproximately 40%* lighter than its glass counterpart,
improving vehicle fuel efficiency and thus contributing to
the reduction of CO2 emissions. Toyota Industries willcontinue to develop attractive new products that leverage
the distinctive characteristics of plastic glazing.
* Survey by Toyota Industries Corporation

Enhancing Appeal of the Vitz and RAV4Business Overview in Fiscal 2013

■ Vehicle Production(Thousand units)

300

200

100

0
(FY)

Japan Automobile Federation

09

10

11

12

13

	Highest-Level QCD to Contribute to
Production of Attractive Toyota Cars

Starting Production of the New RAV4In December 2012, the Nagakusa Plant in Aichi Prefecture
launched production of the new RAV4, a globally strategic
model to be sold in more than 170 countries, mainly in the
United States and Europe, by Toyota Motor Corporation(TMC). The vehicle’s exterior is marked by the distinctive“keen look” front design, which TMC is adopting uniformly
in its globally marketed vehicles, as well as a bold stylethat pursues an excellent level of aerodynamic
performance. The new RAV4 utilizes Toyota Industries’
technological strengths, including a spindle-type power

New RAV4

	Plastic Glazing Panoramic Roof for thePrius a (Prius v in North America andPrius + in Europe)
Toyota Industries engages in production of a panoramicroof made of plastic glazing for the Prius a, a hybrid
vehicle marketed by TMC in May 2011. The roof is

Production volume in fiscal 2013 rose 56,000
units, or 9%, over the previous fiscal year to666,000 units as a result of an increase inproduction primarily of KD diesel engines.
Net sales increased ¥19.6 billion, or 10%, fromthe previous fiscal year to ¥216.7 billion.
■ Engine Production(Thousand units)

700
600
500
400
300

Automobile

In the automobile industry, the global market
grew along with a recovery in the Japanesemarket backed by the government’s subsidy
program for eco cars and steady market growthin North America and Asia.
In fiscal 2013, unit production dropped by
9,000 vehicles, or 3%, from the previous fiscal
year to 269,000 vehicles. Although sales of Vitz
(Yaris outside Japan) declined, sales of the RAV4
increased. Nevertheless, net sales were up ¥2.3
billion, or 1%, to ¥356.7 billion.

back door, which can open to an angle preferred byindividual users, and was the first ever to be installed in
Toyota cars. The vehicle also clears the world’s safety
standards.
In preparing for production, we paid particular attention
to ensuring quality from a customer perspective anddeveloping production lines that can easily adapt tochanges in vehicle models and production volume.
By engaging in a comprehensive process fromdevelopment to production, we worked to achieve thelevel of quality that guarantees even greater customer
satisfaction. We also successfully built flexible productionlines that are adaptable to changes in vehicle models andunit production in the most compact assembly plant
among TMC’s automobile body manufacturers.
We also became the first automobile bodymanufacturer of the Toyota Group to undertake production
preparation simultaneously at three plants, including
TMC’s non-Japan production bases. In close collaboration
with TMC, we played a role in ensuring the smooth andsimultaneous launch of production at three plants bysetting up a system in which plants in and outside Japan
shared information on issues and leveraged timedifferences to efficiently resolve these issues.

Business Overview in Fiscal 2013

Business Activities

VehicleSince March 2010, Toyota Industries is the sole producerof the Vitz in Japan. With a view to turning the Vitz into along-selling series, Toyota Industries collaborates with
TMC and its dealers to make various suggestions underthe banner “Make Our Vitz More Attractive by Ourselves.”
In the future, we will
extend the scope of
our activities toinclude the RAV4 andseek ways to make it
more appealing andsatisfying tocustomers worldwide.
Under this initiative,
we will plan, develop
and produce specialedition vehicles thatreflect the voices ofour customers.
At the same time,
we also undertake
activities to expand
our customer base byenhancing the appealof the Vitz throughour support toCapturing the win for the third consecutive year in
the Japanese Rally Champion sponsored by the
motorsports events.

Engine

200
100
0
(FY)

09

10

11

12

13

	Toyota Industries’ Diesel Engines Highly
Acclaimed by Customers Worldwide
Toyota Industries’ diesel engines, fitted in a variety of
Toyota vehicles sold around the world, have gained highmarket recognition for their cleaner emissions, greater fuelefficiency and higher performance. KD diesel engines,
for which production started in 2005, are installed in
TMC’s Innovative International Multi-Purpose Vehicle (IMV)
series, and their sales have been achieving steady growth
mainly in Asia and Latin America. The V-type 8-cylinder VD
diesel engine, which was developed primarily by Toyota
Industries, is installed in the Land Cruiser selling
particularly well in Australia, Russia and the Middle East.
In 2012, we developed an AD diesel engine with
idle-stop capability. This new engine is fitted in the RAV4
marketed in Europe as well as the AURIS, contributing to
an improvement in overall fuel efficiency.

In recognition of Toyota Industries’ comprehensive
strengths in vehicle quality as well as delivery, cost andsafety to be the highest among all Toyota-affiliatedautomobile body manufacturers, we received from TMC
an award for excellence in 2012 under the Toyota Quality
Control Award program. In the face of the shrinking
automobile market in Japan, we are further strengthening
our already superior level of quality, cost and delivery(QCD). We also are working to leverage our ability toquickly start up production and a flexible structure in termsof vehicle models and production volume to contribute toproduction in Japan of Toyota vehicles.
AD diesel engine

32

Toyota Industries Report 201333

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

Unit sales of car air-conditioning compressors
increased both in and outside Japan, pushing up
overall unit sales by 1.87 million units, or 9%, to23.42 million units. Net sales rose ¥21.6 billion,or 10%, over the previous fiscal year to ¥228.1
billion.
■ Compressor Sales(Million units)

25
20
15
10
5
0

(FY)

09

10

11

12

13

	Development Efforts Based on 3Es(Energy, Environmental Protection and
Ecological Thinking)Toyota 1KD new industrial diesel engine

	Aiming to Bring Satisfaction to More
Customers
Toyota Industries has been making efforts to achieve
shorter development cycles with improved efficiency. At
the same time, we have 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 economy and lower costs.
For our general-purpose engines, we will plan, develop
and produce a lineup of products matched to customers’
needs while actively promoting sales activities.

More stringent fuel economy standards will be enforced in
North America, Europe, Japan and China, requiring
automobiles to provide extremely high fuel efficiency
performance.
Against this backdrop, in the field of car airconditioning compressors to be fitted in internalcombustion vehicles, the need for fuel-efficient models isincreasingly growing for both fixed- and variabledisplacement type compressors. In North America, inparticular, a shift from a fixed-displacement type to avariable-displacement type is accelerating.
In response, we concentrated on development of avariable-displacement type compressor with considerably
greater fuel economy. For products targeting emerging
countries, we sought an optimum balance between
product performance and prices.
In the field of variable-displacement type compressors,
we developed the SES series, which has been adopted by*1: Survey by Toyota Industries Corporation*2: See “Special Feature 2” on pages 21–24.

ESA34 compressor (electric type)■ Worldwide Bases of Car Air-Conditioning Compressors (As of March 31, 2013)

DNDE

Germany

TDDK

Germany
YST

China

MACI

China

U.S.A.

DIAM

U.S.A.

Italy

TICO

DNTS

Japan

Italy

TACK

SUBROS

China

India

TACG

U.S.A.
TICA

U.S.A.

TACI

Indonesia

DNBR

Brazil

6SES14 compressor (variable-displacement type)
Toyota Industries Report 2013

DICH

DSIT

: Consolidated production bases

34

In response to the growing demand for variabledisplacement type compressors triggered by the
anticipated enforcement of more stringent fuel economy
standards, we proceeded with augmenting the production
capacities of our production bases in North America.
In addition, with the aim of increasing the ratio of local
procurement, Toyota Industries Compressor Parts
America, Co. (TICA), a consolidated subsidiary newly
established in North America to produce car airconditioning compressor parts, plans to commence
production of parts in September 2013.
In Europe, the ASEAN countries and China as well,
we are expanding production capacities and increasing
the ratio of locally procured parts to accommodate
growing demand for car air-conditioning compressors.
To respond to the growing ASEAN automobile
markets, in particular, P.T. TD Automotive Compressor
Indonesia (TACI), a production base in Indonesia for car
air-conditioning compressors, will construct a new plant tofurther bolster its production capacity.
In line with our increasingly globalized production
operations, the Compressor Division established the
Global Training Center of Compressor (GTCC) to ensure
product quality. This is an initiative aimed at educating
manufacturing personnel of our overseas production
bases on monozukuri (manufacturing) in Japan as well
as facilitating the nurturing of Japanese staff who will
provide skills guidance at production bases outside Japan.
Our plants in Japan are serving as mother plants andtaking the lead in and providing support to ourmanufacturing operations.

Automobile*1: Short for gas heat pump; air conditioner driven by a gas engine*2: Short for combined heat and power; co-generation system*3: Survey by Toyota Industries Corporation

Business Overview in Fiscal 2013

	Establishing Optimum Global Productionand Supply Structures

TMC in its latest Corolla, General Motors Company andDaimler AG. The new compressor achieves 10%*1 higher
fuel efficiency and a 10%*1 reduction in weight, and weare actively promoting sales to automakers in Japan, theUnited States and Europe.
Our electric compressors for hybrid vehicles (HVs) andelectric vehicles (EVs) are highly renowned for their strong
product appeal. Since initially being installed in thesecond-generation Prius, these electric compressors havebeen fitted in all of TMC’s HVs from the third-generation
Prius to the LS600h. We are also promoting sales of ourelectric compressors to other automakers in and outside
Japan, which are now actively engaged in thedevelopment of HVs, by offering smaller and more fuelefficient products.
In July 2012, we developed the ESA34 electriccompressor*2, which has been installed in HVs of Ford
Motor Company and other automakers. The newcompressor is 10%*1 lighter and has 10%*1 higher fuelefficiency than conventional models, and a change in its
structure makes it easier to mount on vehicles. Appealing
these excellent features, we will accelerate our efforts to
expand sales to automakers in Japan, the United Statesand Europe.

Business Activities

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 GENEO-HYBRID diesel-poweredinternal-combustion hybrid lift trucks, and adopted by
GHP*1 manufacturers in Japan and CHP*2 manufacturers
worldwide.
In 2012, we developed the Toyota 1KD, a new
industrial diesel engine equipped with a turbocharger
developed in-house. The new engine offers downsized
displacement (43%*3 lower than current models), higher
fuel efficiency (23%*3 lower rated fuel consumption
compared with current models), cleaner emissions and areduction in size.
We also developed the Toyota 1FS, a new gas/
gasoline engine that, just like the Toyota 1KD, realizes thedownsizing of displacement (18%*3 lower than current
models), higher fuel efficiency (12%*3 lower rated fuelconsumption compared with current models, usingliquefied petroleum gas) and a reduction in size.

Car Air-Conditioning Compressor: Licensed manufacturers: Technical service stations

Toyota Industries’ car air-conditioning compressors are widely adopted by automakers around the world, garnering the No. 1*3 position in global sales.
*3: Survey by Toyota Industries Corporation

35

Logistics
Car Electronics

Business Overview in Fiscal 2013
Net sales of car electronics products grewsteadily as a result of an increase in the numberof models fitted with our products such as the
Toyota Prius, Aqua and other HVs as well as thePrius Plug-in Hybrid.

In addition to inverters for drive systems utilizing thisdirect-cooling method, we have developed a powertrain
unit for EVs and other core components. For the
powertrain unit for EVs, we integrated designs offunctional components, such as an inverter, motor andreduction gears, into one package and successfully
reduced the size and weight. By integrating hardware with
an electronic control unit (ECU), including control software,
we are working to increase the added value of the system
as a whole.

Toyota Industries offers customers highly advanced, efficient logistics services to respond to their diverse needs,
including consigned operation of distribution centers; land transportation services; cash collection and delivery
and cash proceeds management services; and data storage, management, collection and delivery services.

Business Activities

	Gaining Experience and Greater Role inElectric-Powered Vehicle Field

Auxiliary Power Source Devices
A DC-DC converter converts the high voltage of HV
batteries to a lower voltage level suitable for operating
lights, wipers, horns and other auxiliary devices. Sincebeing adopted in the first-generation Prius, we havecontinuously developed more compact and lighter weightmodels, and cumulative production hit 5 million units in
December 2012.

Business Overview in Fiscal 2013

Powertrain unit for EVs

Charging Infrastructure
Backed by our experience in developing
chargers for the RAV4 EV originallyreleased to the market in 1997, we havebeen making efforts to promote thedevelopment of the charging
infrastructure jointly with Nitto Kogyo
Corporation. In February 2013, ourEVC1-IC charging stand became the first
product certified under the Product
Certification of AC Charging Equipment
for EV and PHEV of the Japan Automobile
Research Institute, Registration Body
(JARI-RB). This certification assures that
customers can use our charger safely andwith peace of mind.

Taikoh Transportation Co., Ltd.’s land transportation services

	Planning, Design and Operation ofDistribution Centers

Charging stand

DC-DC converter fitted in the Aqua

A DC-AC inverter is equipped to use home electric
appliances in a vehicle. Since commencing production in
1995, we have achieved cumulative production of 10
million units in March 2013.
We have developed an on-board charger based on
our technologies and know-how regarding EV chargers
developed in the 1990s. The resulting on-board charger isfitted in the Prius Plug-in Hybrid.
Core Components for Drive Systems
Toyota Industries applied its proprietary direct-coolingmethod to develop a device with significantly higher
cooling performance. We have entered the field of corecomponents for drive systems such as power control units(PCUs) for the third-generation Prius.

36

Although orders for logistics services declined
due to selling our shares in the logistics service
subsidiary Mail and e Business Logistics
Service Co., Ltd. in May 2011, orders for landtransportation services for automotive parts
increased. As a result, net sales in fiscal 2013
remained on par with the previous fiscal year at¥93.0 billion.

	Accelerating Development Activities to
Realize Low-Carbon Society
Demand for environment-friendly products with highenergy efficiency is expected to increasingly grow, with thetrend toward electrification likely to expand not only for
automobiles but also for such non-automotive products asmaterials handling equipment. Enhancement of thecharging infrastructure will also take a greater role inpromoting the spread of PHVs and EVs.
Targeting the high-growth, electric-powered vehicle
market, we will accelerate development of technologies
and products in the fields of auxiliary power source
devices, core components and systems for drive systems
and charging infrastructure, thereby making a significant
contribution to the realization of a low-carbon society.

Toyota Industries operates distribution centers for various
industries and customers. During fiscal 2013, operation ofexisting distribution centers generated a relatively steadylogistics volume. We continued to promote improvement
activities at logistics sites based on the thinking embodied
in the Toyota Production System (TPS) to enhance thelevel of services to customers and strengthen our profit
structure.
With an aim of optimizing the entire supply chain ofeach customer, we continued our proactive sales activities
by making proposals that leverage the maximum use of
the Toyota Industries Group’s hardware and software
capabilities. As a result, we successfully obtained four neworders for the consigned operation of distribution centers.
Looking ahead, we will continue to facilitate ourproactive sales activities for both increasing orders fromour existing customers and acquiring new customers inindustries having high growth potential.

automobile industry declined temporarily due in part to thediscontinuation of the Japanese government’s subsidy
program for eco cars, an upturn in transportation volume
occurred rather quickly, keeping pace with economic
recovery in Japan.
Under these circumstances, we continued our profit
improvement activities by promoting efficient cargotransport while aggressively undertaking activities toensure safe and environment-conscious operations.
While doing so, we have been pushing ahead with theestablishment of a flexible business structure adaptable toa shift in automobile production locations within Japan.
As part of this effort, we opened the Tohoku Distribution
Center in Miyagi Prefecture in October 2012.
We will continue to improve the level of logistics
services to our existing customers and further reinforce
our sales activities to capture new customers.

	Land Transportation Services
The Taikoh Transportation Group provides landtransportation services under consignment from many
automotive parts manufacturers. The group collects
finished parts from manufacturers, compiles them by theirdestination and delivers to automakers “what is needed,when it is needed and in the quantity needed.”In fiscal 2013, although transportation volume in the
Taikoh Transportation’s Tohoku Distribution Center

Toyota Industries Report 2013

Automobile/Logistics

Toyota Industries develops and produces electronic
components and devices for electric-powered vehicles,
including HVs, plug-in hybrid vehicles (PHVs) and EVs. In
addition to expanding sales to TMC, we are pursuingbusiness development with automakers in and outside
Japan.

37

Textile Machinery	High Value-Added Services Including
Cash Collection and Delivery and Cash
Proceeds Management and Data Storage,
Management, Collection and Delivery

Based 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 top global market share*1 in unit sales, to spinning frames and roving frames.
*1: Survey by Toyota Industries Corporation

Business Overview in Fiscal 2013

■ Air-Jet Loom Sales(Thousand units)

8
6

Logistics/Textile Machinery

In the textile machinery field, sluggish market
conditions caused unit sales of air-jet looms todecline 600 units, or 11%, from the previous
fiscal year to 4,600 units. Net sales, on the other
hand, were up ¥1.4 billion, or 4%, over theprevious fiscal year to ¥39.9 billion in conjunction
with making Swiss-based Uster Technologies AG
a Toyota Industries subsidiary in February 2012.

enables the weaving of fabrics with complex patterns.
In the field of spinning machinery, Toyota Industries
and Truetzschler GmbH & Co. KG, a German
manufacturer of spinning machinery founded in 1888,
co-developed the TCO 12 comber*3. Combining Toyota
Industries’ weaving machinery technology and know-how
accumulated over the years and Truetzschler’s spinningmachinery technology and expertise which have earned
high acclaim among customers worldwide, the newcomber provides improved yarn quality as well as excellent
stability during high-speed operation. We are confident
that this product will bring greater satisfaction to ourcustomers.
We will also accelerate our R&D activities to create
innovative weaving and spinning machinery by leveraging
Uster’s world-class sensor technology and information
processing technology.

Business Activities

Cash Collection and Delivery and Cash Proceeds
Management
Asahi Security Co., Ltd. provides cash collection anddelivery and cash proceeds management services
throughout Japan on a 24/7 basis to about 2,550
customers mainly in the retail sector, service industries,
post offices and financial institutions.
In addition to cash collection and delivery services
tailored to each customer’s specific needs, Asahi Security
offers comprehensive services that include managementof gift 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.
In September 2012, Asahi Security opened a cash
collection and delivery center in Miyakojima Island,
Okinawa Prefecture. With 19 cash collection and delivery
centers and 10 logistics sites throughout Japan, thecompany is reinforcing its nationwide service and support
networks.
At each business base, Asahi Security conducts
regular training on its own as well as emergency training
jointly with local police departments in order to provide
safe and trusted services to customers.
By providing these comprehensive services, Asahi
Security aims to become a unique, distinctive company inthe field of cash collection and delivery and cash proceeds
management services.

Data Storage, Management, Collection and Delivery
Wanbishi Archives Co., Ltd. provides support to about 4,000
companies and organizations, including large financial
institutions and government agencies, to ensure the security
and efficient use of their information assets. Under its robust
security structure, Wanbishi Archives offers a comprehensive
range of services covering the entire lifecycle of criticalinformation assets, from storage and utilization todestruction. Wanbishi Archives also offers high value-added
services in its outsourcing business, such as digitizing paper
documents, by being closely involved in customers’
business processes.
In the wake of the Great East Japan Earthquake that
occurred in 2011, there has been a growing recognition of
the need to implement appropriate business continuity
management (BCM). Wanbishi Archives offers a range ofsolutions matched to customers’ needs, from selecting
documents that are essential in ensuring business continuity
and promoting centralized management of information
assets to building a structure to securely store and restore
backup data.
In addition, Wanbishi Archives is offering cooperation for“Michinoku Shinrokuden,” an archiving project led by theInternational Research Institute of Disaster Science of
Tohoku University for compiling information on the 2011
Great East Japan Earthquake, and in October 2012 began
to undertake long-term, remote storage of importantearthquake records and important data accessible to future
generations.
Outside Japan, Wanbishi Archives’ subsidiary in China
has relocated and upgraded its information management
center for achieving greater safety and security. Capitalizing
on its experience and know-how accumulated in Japan,
Wanbishi Archives provides support to companies andorganizations doing business in China to ensure the security
and efficient use of their information assets. Through such
efforts, Wanbishi Archives is actively pursuing business
opportunities in growth markets.

*2: Survey by Toyota Industries Corporation*3: A machine used in the spinning process, which uses a comb-like device to remove
short fibers and impurities to improve quality of the resulting yarn

4
2
0

(FY)

09

10

11

12

13

	Further Enhancing Product Appeal

Asahi Security Co., Ltd.’s cash collection and delivery andcash proceeds management services
Wanbishi Archives Co., Ltd’s data storage, management, collection anddelivery services

38

In the field of weaving machinery, we remodeled our widelyused JAT710 air-jet loom, which boasts the top global
market share in unit sales and is highly recognized bycustomers for its outstanding performance and reliability.
We plan to commence production of a new model, theJAT810, in August 2013. To meet the growing need forhigher energy efficiency, the JAT810 isequipped with our newly developed
weft yarn inserting system that
reduces the amount of air required tocarry the weft yarn by 20%*2
compared with the conventionalmodel, offering unparalleled energysaving performance. Its productivity
has also been improved with theintroduction of a higher-speed
electronic shedding device thatTCO 12 comber

JAT810 air-jet loom equipped with the optionally available electronic shedding device
Toyota Industries Report 201339	Participation in ITMA ASIA + CITME 2012
and INDIA ITME 2012
In 2012, Toyota Industries participated in textile machinery
trade shows held in China and India, two of the world’s
largest textile markets.
In June, ITMA ASIA + CITME 2012 was held in
Shanghai, China, with 1,283 companies participating from28 countries and the attendance of more than 92,000
visitors. At this exhibition, we displayed and demonstrated
our new JAT810 air-jet loom, the TCO 12 comber jointly
developed with Truetzschler and the RX300 high-speed
ring spinning frame capable of producing value-added
special yarns.
At INDIA ITME 2012 held in Mumbai in December,
773 companies from 27 countries participated andapproximately 80,000 visitors attended. We ran a joint

40

Toyota Industries Report 2013booth with Kirloskar Toyota Textile Machinery Pvt. Ltd.
(KTTM), a consolidated subsidiary in India, anddemonstrated actual operations of Toyota Industries’ new
JAT810 air-jet loom and KTTM’s RXI240 ring spinning
frame and FL200 high-speed roving frame.
At both events, we received favorable feedback frommany customers mainly from China and India.
We will continue to appeal our excellent technologicalcapabilities and environmental performance in our efforts
to earn a higher level of customer trust. We also aim tomeet customer expectations by developing textile
machinery that produces even higher value-added textile
products through the pursuit of advanced technologies
and continuous creativity and ingenuity as well as byproviding meticulous after-sales services via an enhanced
service structure.

ITMA ASIA + CITME 2012

ITMA ASIA + CITME 2012

INDIA ITME 2012

INDIA ITME 2012