Business Activities

Materials Handling Equipment / Logistics

P36 − 43

Materials Handling Equipment

P36 − 41

Logistics

P

42− 43

AutomobileP

44− 49Vehicle / Engine / Car Air-Conditioning Compressor / Car Electronics

Textile Machinery

P

50

35

Materials Handling
Equipment / Logistics

Business Activities in Fiscal 2015

Business Overview in Fiscal 2015
In the materials handling equipment market, growthcontinued globally on the back of strong sales in Japan aswell as in North America, Europe and China. Based on theconditions of respective markets, Toyota Industries
augmented its production and sales activities andlaunched new products. Sales of our mainstay lift trucks
expanded in Japan, North America and Europe. As aresult, unit sales for fiscal 2015 increased 23,000 units, or
12%, to a total of 222,000 units over the previous fiscal
year. The increase in unit sales of lift trucks, coupled withsteady sales of lift truck attachments and aerial work
platforms, pushed up net sales by ¥115.7 billion, or 14%,to ¥924.9 billion.

The lift truck market in 2014 posted strong sales mainly inJapan, North America, Europe and China. In Japan, we
worked to expand sales in the manufacturing industry, inwhich there has been an upswing in capital investment, as
well as in such industries as transportation, warehousing
and construction. In North America and Europe, we sought
to respond to diverse customer needs by offering new
products and services in addition to implementing a range ofsales promotion initiatives. Regarding emerging countries,
we strived to reinforce our sales structures in China, ASEAN
countries and the Middle East, where growth remains
strong, while seeking to increase the competitiveness of our
locally manufactured lift trucks.
As one response to the expected continued growth inmarkets in emerging countries, Toyota Industries reached anagreement to acquire the lift truck business of Tailift Co.,
Ltd., a Taiwanese developer and manufacturer of lift trucks,
and made it into a consolidated subsidiary in August 2015.
Tailift mainly handles products matched to needs in emerging
countries, and the two companies complement each otherin terms of sales territory and product range. Capitalizing on
Tailift’s strengths, we aim to achieve further growth inemerging countries where market expansion is expected.

Aichi Corporation’s
aerial work platform(Thousand units)

Japan

250

TOYOTA
Europe200

TOYOTA
BT
CESAB

150

TOYOTABTRAYMOND

50

0*2: Surveys by Japan Industrial Vehicles Association and Toyota Industries Corporation,
2014

New GENEO (released in July 2014)
Received a 2014 Good Design Award, German Design Award
2015 Special Mention, iF Design Award and 2014 Best 10 New
Products Award (sponsored by The Nikkan Kogyo Shimbun, Ltd.)

Demonstrating Product Appeal through an
Exhibition

TOYOTARAYMOND

ALOMA*1

TOYOTABTRAYMOND
(FY)

11

12

13

14

15
Top: Region Bottom: Brand

36

In 2014, the Japanese lift truck market showed steady
growth. Toyota Industries sought to increase sales in the
manufacturing industry, in which there has been an upswing
in capital investment, including manufacturers oftransportation equipment. At the same time, we proactively
promoted sales of the new GENEO internal-combustion lift
trucks released in July 2014. As a result, unit sales in fiscal
2015 increased 5% year-on-year to 39,000 units. Toyota
Industries achieved a record-high share of 47.0% in theJapanese market, topping the previous year’s record for thethird consecutive year in 2014, and maintained its top
position*2 for the 49th consecutive year.

North America

China

100

Launching New GENEO Mainstay Lift Trucks

Toyota Industries participated in Logis-Tech Tokyo 2014 heldin September 2014 to showcase its advanced environmental
technology and extensive product range, including the new
GENEO lift trucks, fuel cell (FC) lift trucks and lithium-ion lift
trucks, of which the latter two are under development. On
the main stage, we presented case examples of logistics
solutions to offer suggestions for increasing logistics
efficiency.

n Toyota Material Handling Group Brands

Materials Handling Equipment Sales

Japanese Market

Materials Handling Equipment / Logistics

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

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

In addition, with the aim of strengthening our sales
finance operations for materials handling equipment, weconcluded an agreement in October 2014 to acquire thematerials handling equipment sales finance operations of
Toyota Motor Credit Corporation (TMCC), a U.S. financesubsidiary of Toyota Motor Corporation (TMC).
TMCC has long-accumulated expertise in sales financefor materials handling equipment, an excellent management
and operational system and structure covering credit andresidual value risks, and a broad lineup of financial products.
We will leverage these strengths in bolstering our sales
finance business and extend our reach globally in the future.
As for the Materials Handling Engineering Business,
which is represented by automated storage and retrieval
systems and automatic guided vehicles, we are working tomeet a wide range of needs by providing consulting services
for customers’ logistics-related issues as well as assistingthem with installation and operation of equipment. In the
e-commerce industry, which has been growing rapidlyreflecting recent changes in people’s lifestyles, we havebeen proactively making various proposals and successfullyacquiring new orders.
In the field of aerial work platforms, sales of Aichi
Corporation, which possesses the top brand in this field inJapan, were negatively affected by a cutback in capital
investment by principal customers in the country such as
the electric power and telecommunication industries. On theother hand, sales in the leasing industry grew in line withrises in construction demand as well as demand for social
infrastructure maintenance work. On the whole, sales ofaerial work platforms increased, andAichi posted sales exceeding theprevious fiscal year’s level. The
company’s profits also increased
year-on-year as a result of its
cost-cutting efforts and profit
improvements at its subsidiaries
in China.

Business Activities

Materials Handling Equipment

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

Toyota Industries Report 2015

*1: ALOMA stands for Asia, Latin America, Oceania, Middle East and Africa.

Toyota Industries booth at Logis-Tech Tokyo 201437

Initiative to Achieve Greater Customer
Satisfaction

Aiming for Industry-Leading Product Offerings
and Customer-Oriented Solutions
The North American lift truck market is expected to show
continued growth in 2015. We aim to maintain ourleadership position in North America by continuing toprovide customer-oriented solutions and offer leading
TOYOTA- and RAYMOND-brand products that balanceenvironmental performance and productivity and contributeto raising customers’ logistics efficiency.

Maintaining Top Market Share

Center rider pallet truck* Survey by Crist Information & Research, LLC, 2014

Earning Recognition for TOYOTA andRAYMOND Brands
Proactively Launching New Products

Service Skills Contest

Toyota expanded its product offering with its 8-Series
Stand-Up Rider delivering improved performance, reliability
and ergonomics with significantly less frequent service
intervals. Toyota also unveiled an extended hand pallet truckline with specialty models to provide one of the mostcomprehensive offerings of pallet jacks in the industry.

In fiscal 2015, Toyota Industrial Equipment Mfg., Inc. (TIEM/
Columbus, Indiana), a consolidated subsidiary that has
manufactured TOYOTA-brand lift trucks since 1990, marked
a manufacturing milestone with the cumulative production ofits 500,000th lift truck.

Steadily Increasing Unit Sales in a Solid
MarketIn February 2015, Toyota Industries started a feasibility testof its FC lift truck in the international cargo area of KansaiInternational Airport. This test is conducted as part of the“Hydrogen Grid Project,” a pilot project undertaken by New
Kansai International Airport Co., Ltd. It aims to become
Japan’s first airport to make extensive use of hydrogenenergy at airport facilities. By participating in this feasibility
project, we will promote the development of practicalapplications of FC lift trucks to facilitate their broader use.

500,000th lift truck celebration

8-Series Stand-Up Rider

Raymond also introduced the Raymond Courier Model
3010 center rider pallet truck and the Raymond Courier
Model 3020 tow tractor automated lift truck. These
automated lift trucks offer the flexibility to operate manually
as a standard Raymond lift truck or scheduled to perform on
their own depending on the customer’s needs.

FC lift truck

38

Toyota Industries Report 2015

Raymond celebrated the 75th anniversary sinceobtaining the patent in 1939 for innovative products
such as a hydraulic hand pallet truck. These
innovations revolutionized the materials handlingindustry at that time. Raymond continues to this day todevelop products under the banner of “innovation.”

European Market

Starting Feasibility Test of FC Lift Truck(See Special Feature 1 on pages 26–29 for details.)

T OPIC

Materials Handling Equipment / Logistics

The North American lift truck market expanded in 2014 on
the back of a strong economy. Toyota Industries remained
the market share leader* in 2014 with combined unit salesof TOYOTA and RAYMOND brands of approximately 73,000
units, up 10% from the previous fiscal year.
Toyota, as a full-line supplier of lift trucks, remained themarket share leader* for the 13th consecutive year, andRaymond continued to hold its number one* market shareposition in narrow aisle electric lift trucks.

Business Activities

To further upgrade services to customers, we held the 3rdService Skills Contest in November 2014, in which a
service representative from the 40 dealers across Japan
participated. Through this contest, we aim to improve ourservicing capabilities and raise awareness among service
staff in order to provide services that bring even greater
satisfaction to customers.

North American Market

For the fourth consecutive year, Toyota ranked number
one in such areas as fewest safety-related incidents andmost affordable to maintain in terms of safety in a study
conducted by the Peerless Research Group on Lift Truck
Safety. In another study by the same group, Toyota lift trucks
ranked number one for the 10th year in a row for quality,
value and lowest cost of ownership.
Raymond has adopted the Toyota Production System(TPS) and continuously carried out improvement activities
taking a proactive approach. In fiscal 2015, in recognition ofthese activities, IndustryWeek named Raymond a 2014 Best
Plant Award winner for the plant and headquarters inGreene, New York. In addition, Raymond received a numberof recognitions from various organizations for its efforts in
job creation, human resources development, environmental
commitment and other areas.

Although European economies registered mild growth, thelift truck market expanded from the previous year. Amidthese conditions, Toyota Industries posted sales of 68,000
units, up 16% from the previous fiscal year, and improved its
market share.

Actively Introducing More New Products
Toyota Industries proactively launched a series of new
products to meet various customer needs. In 2014, we
introduced the Toyota Tonero, a 3.5- to 8.0-ton capacity
diesel engine lift truck boasting high environmental
performance thanks to its new engine. In addition to theconventional torque converter transmission, we added anelectronically controlled hydrostatic transmission (HST) to
our lineup. The Tonero HST, which makes the simultaneous
operations of materials handling and driving easy, received apositive response from the market. As for the BT brand, welaunched the BT Levio P-series of powered pallet trucks
with exceptional operational and energy efficiency as well as
the BT Reflex RRE B-series of entry-level reach trucks
specifically designed for straight forward applications. In thesolutions area, a new edition of the Toyota I_Site system for39

Toyota Industries is committed to delivering high-quality
materials handling products and services. At the same time,
we will strive to further expand our market share in Europe
by making proposals for logistics solutions closely optimized
for each customer.

In January 2015, to create added value for our Asiancustomers, the Asia Regional Office in Singapore, which had
engaged in market surveys and supported marketing
activities for distributors in Asia, was replaced with an
officially established company, Toyota Material HandlingMarketing Asia Pacific Pte. Ltd. (TMH-MAP). TMH-MAP willcontinue the functions of the regional office but also
reinforce sales and marketing support to distributors in Asia,
for example, by holding product training, supporting global
key account business and helping with value chain
enhancement.
In the Middle East, the regional office in Dubai has been
supporting distributors in Africa and the Middle East from awarehouse truck perspective. In April 2014, the regional
office began providing support for counterbalanced lift
trucks as well. Through this expansion of functions, theregional office will serve as a stronger hub for distributors in
the region, carrying out various tasks such as collecting
market information and organizing regional conferences andtraining programs.

Toyota Tonero

truck and fleet management, which has earned high acclaim
from customers, was released. The upgraded systemenables distributors and customers to ascertain andmanage themselves the operational status of each truck inreal time using tablets and similar devices. We also provide
the Toyota Service Concept (TSC) for unique, forwardthinking lifetime support, including dispatching service
personnel and receiving orders for replacement parts online
underpinned by our reliable technologies.

T OPIC
Receiving High Praise from External
Organizations
Our Toyota I_Site and Toyota Traigo 80 were the big
winners of the International Forklift Truck of the Year(IFOY) Award. The Toyota I_Site is an intelligent fleet
management system that provides support for
improving the machine availability rate and facilitating
safety- and environment-conscious operations, and the
Toyota Traigo 80 is an electric lift truck reputed forreliable and energy-efficient performance. These
products were comprehensively and highly evaluated interms of innovative quality, technology, design,ergonomics, handling, safety, cost effectiveness,sustainability and other factors.

ALOMA* and Chinese Markets
Sales Promotion Initiatives
Increasing Unit Sales through Proactive Sales
and Marketing Activities
Toyota Industries covers the ALOMA markets of Asia, Latin
America, Oceania, the Middle East and Africa as well as the
Chinese market. We are serving these markets with a lineup
consisting of TOYOTA, BT and RAYMOND brands.
Even though there were disparities among countries andregions in 2014, unit sales in the ALOMA lift truck market asa whole were on par with the previous year. The Chinese lift
truck market, however, registered growth. Through ourefforts in implementing sales and marketing activities, annual
sales in fiscal 2015 reached 42,000 units, an increase of
17% compared with the previous fiscal year.
*A LOMA is a Toyota Industries term for Asia, Latin America, Oceania, Middle East
and Africa.

Carrying Out Sales Expansion Activities inMarkets with Potential for Sustainable Growth
The ALOMA and Chinese markets are expected to sustain
growth for the foreseeable future. In this market climate,
we will continue to promote sales expansion activities by
providing products closely matched to local market needs,
further improving after-sales services, creating an even moreenhanced sales network and pursuing economic
competitiveness in terms of product lifecycle.

T OPICBT Reflex

Toyota Industries proactively attends various exhibitions topitch its full-line products and excellent servicing capabilities
directly to customers. In June 2014, we exhibited our richlineup of products and logistics solutions at CeMAT
Hannover in Germany.
Despite an unstable market situation in 2014, Toyota
Material Handling Russia (TMH RUS), Toyota Industries’
wholly owned sales subsidiary, carried out an array ofcustomer-oriented sales expansion activities, which
culminated in receiving a large order from a leading foodretailer in Russia.
In the Czech Republic, we held a demonstration event
and welcomed numerous participants, directly appealing ourbroad-ranging product lineup and logistics solutions. In thisway, we carried out various local sales and marketing
activities.

In China, Toyota Industry (Kunshan) Co., Ltd. (TIK)
commenced production of 3.5- to 8.0-ton capacity 8-Series
lift trucks in June 2014. These new internal-combustion lift
trucks are not only sold in China but also exported to the
ALOMA and European markets. TIK will further expand its
role as a crucial supply base of TOYOTA-brand lift trucks.
On the sales side, Toyota Industries will continue to enhance
the sales structure of Toyota Material Handling (Shanghai)Co., Ltd. (TMHS) in its efforts to further strengthen sales andservice networks in key regions.

Materials Handling Equipment / Logistics

Initiatives in Growing Markets

Business Activities

Further Expanding Market Share in Europe

Regional conference in Dubai

In Brazil, Toyota Material Handling Mercosur Indústria eComércio de Equipamentos Ltda (TMHM) commenced
production of electric lift trucks from April 2015 tocomplement the already existing production of internalcombustion lift trucks. The enhancement of the productlineup will be a major enabler for responding broadly tocustomer demand while facilitating a greater presence in theBrazilian market.
In Australia, Toyota Material Handling Australia Pty
Limited (TMHA) is striving to ramp up sales activities. TMHA
completed the project to cover the entire Australian region
with fully captive sales, service and rentals branch
operations in 2014. In addition, TMHA has started a rental
finance service. TMHA will continually make efforts to meetcustomer needs not only by providing equipment but also
by enhancing the value chain.

In May 2014, Toyota Industries held a Sales &Marketing Conference in Hannover, Germany, with 88
representatives from Toyota, BT and Raymond
distributors spanning 39 countries in attendance. The
conference signified the launch of two new models, theBT Reflex S-series and BT Levio P-series. In addition,
seminars and workshops were held to share the latest
developments in products, services and technology
solutions offered in the ALOMA markets. The
conference attendees also received a guided tour of
our exhibit at the CeMAT fair, confirming products andservices through genchi genbutsu (go and see foryourself).

Sales & Marketing Conference

Product demonstration event in the Czech Republic

40

Toyota Industries Report 201541

Materials Handling
Equipment / Logistics

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 anddelivery and cash proceeds management services; anddata storage, management, collection and delivery
services.

Business Overview in Fiscal 2015
Both the logistics services business and the landtransportation services business for automotive parts
increased. As a result, net sales in ﬁscal 2015 increased¥2.7 billion, or 3%, over the previous ﬁscal year to¥98.0 billion.

Land Transportation Services
The Taikoh Transportation Group provides landtransportation services under consignment from many
automotive parts manufacturers. The group collects finishedparts from manufacturers, compiles them by theirHigh Value-Added Services Including Cash
Collection and Delivery and Cash Proceeds
Management and Data Storage, Management,Collection and DeliverynC ash 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 2,900
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 management ofgift certificates and accounting operations at customers’
retail outlets. Furthermore, the company provides security
services integrating the monitoring by security devices anddispatch of security guards on a 24/7 basis. By providing
these comprehensive services, Asahi Security aims tobecome a unique, distinctive company in the primary field of
cash collection and delivery and cash proceeds
management services.
Asahi Security operates 19 cash collection and delivery
centers and 14 logistics sites from Hokkaido to Okinawa
Prefecture, thereby setting up a system to respond to
customer needs throughout Japan. In fiscal 2015, thecompany reinforced its network by establishing new logistics

Asahi Security Co., Ltd.’s cash collection and delivery andcash proceeds management services

sites in Yamagata, Fukushima, Shiga and Wakayama
prefectures.
At each business base, Asahi Security conducts regulartraining on its own as well as emergency training jointly withlocal police departments in order to provide safe and trusted
services to customers.
nD ata 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 in electronic, paper or other forms, fromstorage and utilization to destruction. These services allow
customers to reduce risks, achieve higher businessefficiency, and ultimately, to focus on their core businesses.
In the wake of the Great East Japan Earthquake, there
has been an ever increasing awareness toward placing
importance on effective business continuity management(BCM), and Wanbishi Archives has undertaken various
initiatives tailored to such needs. With the use of so-called
big data beginning to become more pervasive andcompanies and organizations now becoming more
conscious in terms of compliance and litigation, the volumeof data handled by them has been growing at an explosive
pace. While cloud services are gaining impetus owing to low
initial costs, ease of use and flexibility as a means to protect
such data, there has been a renewed interest in the use of
fault-tolerant, cost-effective magnetic tapes for long-term
data storage. Wanbishi Archives is responding to the needfor ensuring the security of their information assets byadopting various data storage forms and technologies.
Outside Japan, Wanbishi Archives’ subsidiary in China
provides services to local companies as well as Japanesecompanies doing business in China. Capitalizing on its
experience and know-how accumulated in Japan, Wanbishi
Archives will continue to accelerate its efforts to capturebusiness opportunities in growth markets.

Materials Handling Equipment / Logistics

Toyota Industries operates distribution centers for various
industries and customers. During ﬁscal 2015, operation ofexisting distribution centers generated a relatively steadylogistics volume. In this environment, we strived tostrengthen our proﬁt structure through cost improvement
activities undertaken at logistics sites based on the thinking
embodied in TPS and simultaneously worked to enhance
the level of services to customers.
With an aim of optimizing the entire supply chain of eachcustomer’s logistics, we continue our proactive sales
activities by making proposals that leverage the maximum
use of the Toyota Industries Group’s resources incollaboration with the Materials Handling Engineering
Business. In fiscal 2015, we started operating five additional
distribution centers for customers mainly in the medical andpharmaceutical industries. In total, we now operate 18
distribution centers under consignment.
Looking ahead, we will continue to facilitate ourproactive sales activities for both increasing orders fromexisting customers and acquiring new customers inindustries having high growth potential.

destination and delivers to automakers “what is needed,when it is needed and in the quantity needed.”
During fiscal 2015, favorable business conditions in theautomobile industry, our principal customer, primarily
generated a steady logistics volume in the transportation of
automotive parts.
Under these circumstances, we continued to conductvarious profit improvement activities, including the promotionof efficient cargo transport, while at the same time
aggressively undertaking activities to ensure safe andenvironment-conscious operations.
We will continue to further reinforce our sales activities
to capture new customers and, ultimately, to expand
business operations.

Business Activities

Logistics

Planning, Design and Operation of Distribution
Centers

Wanbishi Archives Co., Ltd.’s data storage, management,collection and delivery services

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

42

Toyota Industries Report 201543

Automobile

Plastic Glazing Panoramic Roof for the Prius a(Prius v in North America and Prius + in Europe)

VehicleBusiness Overview in Fiscal 2015
In the automobile industry, despite the sluggish
Japanese market, increased sales in China and North
America and a recovery in Europe served to drive
continued growth in the global market.
In fiscal 2015, an increase in sales of the RAV4 wasoffset by a drop in sales of the Vitz (Yaris outside Japan),and unit sales declined by 20,000 units, or 6%, from theprevious fiscal year to 308,000 units. Net sales were
down ¥8.0 billion, or 2%, to ¥459.0 billion.

Vehicle Sales(Thousand units)

350

Toyota Industries engages in production of a panoramic roof
made of plastic glazing for the Prius a, a hybrid vehicle
released by TMC in May 2011. The roof is currently astandard feature of Prius + vehicles marketed in Europe.
This product retains the beautiful surface quality typicalof a glass roof yet is approximately 40%* lighter than its
glass counterpart, improving vehicle fuel efficiency and thus
contributing to the reduction of CO2 emissions.
Toyota Industries will continue to develop attractive new
products that leverage the distinctive characteristics ofplastic glazing.
* Survey by Toyota Industries Corporation“Our Vitz and RAV4” Initiative for Enhancing
Appeal of the Two Car Models
As the sole producer of the Vitz in Japan and with the aim ofturning the vehicle into a long-selling series, Toyota
Industries collaborates with TMC and its dealers to makevarious suggestions under the banner “Taking the Lead in
Making Our Cars More Attractive.” Similarly, to boost theappeal of the RAV4, we plan and develop special-edition
vehicles that directly reflect the voice of our customers.

Development of Electric Vehicles (EVs)Integrating Energy-Saving, Electrificationand Lighter-Weight Technologies
Toyota Industries also undertakes development of nextgeneration EVs based on the 3Es (Energy, Environmental
protection and Ecological thinking). Rather than convertinginternal-combustion vehicles into EVs, which has been awidespread practice among automakers, we have created a
dedicated platform that makes the most of the distinctive
characteristics of EVs and have been conducting feasibility
tests on prototype vehicles.
In the future, we will accelerate the development of EVs
and propose new, EV-specific vehicle packages.

200
150
100
50

(See Special Feature 2 on pages 30–34 for details.)

Business Overview in Fiscal 2015
Unit sales in fiscal 2015 declined 58,000 units, or 9%,
from the previous fiscal year to 568,000 units due mainly
to decreases in sales of KD diesel engines and AR
gasoline engines. Net sales dropped ¥10.5 billion, or
5%, from the previous fiscal year to ¥192.0 billion.

GD diesel engine

Developing Competitive Diesel and Gas/
Gasoline Engines in Non-Automotive Fields
Engine Sales(Thousand units)

700
600
500
400
300
200

0

250

Toyota Industries’ diesel engines, fitted in a variety of Toyota
vehicles sold around the world, have gained high market
recognition for their cleaner emissions, greater fuel efficiency
and higher performance. The V-type 8-cylinder VD diesel
engine is installed in the Land Cruiser selling particularly wellin Australia, Russia and the Middle East. As a successor
model of KD diesel engines, we commenced production of
GD diesel engines in June 2015. These engines, which areinstalled in TMC’s Land Cruiser Prado and other vehicles,
are equipped with a turbocharger, for which we participatedin the development and started production in-house, andboast significantly higher performance.

Engine100

300

Toyota Industries’ Diesel Engines Highly
Acclaimed by Customers Worldwide

Automobile

In recognition of Toyota Industries’ comprehensive strengths
in vehicle quality, delivery, cost and safety as the highest
among all Toyota-affiliated automobile body manufacturers,
from Toyota Motor Corporation (TMC) we have received anaward for excellence under the Toyota Quality Control Award
program for three consecutive years. In the face of theshrinking automobile market in Japan, we are further
strengthening our already superior level of safety, theenvironment, quality, cost and delivery (SEQCD). We also
are working to leverage our ability to quickly start up
production and a flexible structure in terms of vehicle
models and production volume to contribute to productionin Japan of Toyota vehicles.

Through these endeavors, we seek ways to create more
appealing and satisfying vehicles for customers worldwide.
At the same time, we also undertake activities to expand
our customer base by enhancing the appeal of the Vitz
through our support to motorsports events.

Business Activities

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

Highest-Level SEQCD to Contribute to
Production of Attractive Toyota Cars

(FY)

11

12

13

14

15

Toyota Industries’ engines are highly renowned for their
excellent environmental performance in non-automotive
fields as well. These engines are used for a wide variety of
applications, including our lift trucks, and adopted by GHP*1
manufacturers in Japan and CHP*2 manufacturers
worldwide.
We expanded our lineup of industrial engines with theaddition of the Toyota 1KD industrial diesel engine, which isequipped with a turbocharger developed in-house, and the
Toyota 1FS gas/gasoline engine in March 2013, followed in
December 2013 by the Toyota 1ZS also equipped with aturbocharger developed in-house.
These three new engines offer downsized displacementcompared with conventional models with equivalent output,
which results in higher fuel efficiency, cleaner emissions anda reduction in size.
In June 2014, the Toyota 1KD received a Logistics

Overall victory in the Japanese Rally Championship
0

44

(FY)

11

Toyota Industries Report 2015

12

13

14

15

45

*1: Short for gas heat pump; air conditioner driven by a gas engine*2: Short for combined heat and power; co-generation system*3:	Award program to promote environmental conservation and environmental awarenessin the freight industry and recognize organizations/companies and individuals which/
who have contributed to achieving sound industrial growth

Car Air-Conditioning Compressor

Business Overview in Fiscal 2015

ESA34 compressor (electric type)

Compressor Sales

Automobile

In fiscal 2015, unit sales of car air-conditioning
compressors rose 3.84 million units, or 15%, over theprevious fiscal year to 29.32 million units as a result of
an increase in sales in North America and China despitea decline in sales in Japan. In January 2015, cumulative
production in Japan exceeded 300 million units. Net
sales rose ¥48.9 billion, or 18%, over the previous fiscal
year to ¥324.6 billion.

Company, Volkswagen and Honda Motor Co., Ltd. Looking
ahead, we will accelerate our efforts to expand sales toautomakers in Japan, the United States and Europe.

simultaneously offers greater fuel efficiency and a reduction
in weight, and it has been adopted by TMC in its Corolla, as
well as by Daimler AG, General Motors Company (GM),
Volkswagen AG and Hyundai Motor Company.
As for fixed-displacement type scroll compressors forlight and compact vehicles, we developed the SCSE series
and started supplying the product to Daihatsu Motor Co.,
Ltd. and GM. We reduced the number of parts used andincreased the precision of functional components, thereby
successfully attaining lighter weight and quieter operation.

Business Activities

Environmental Technology Development Award in the 15th
Logistics Environmental Awards program*3 sponsored by
the Japan Federation of Freight Industries. In January 2015,
GENEO lift trucks equipped with either the Toyota 1KD or
Toyota 1ZS engine won a Best 10 New Products Award for2014 sponsored by The Nikkan Kogyo Shimbun, Ltd..
These awards reflect the high recognition given to theenvironmental performance of our engines.

Creating Experimental Facilities In-House
That Replicate More Realistic Vehicle
Environment(Million units)

30
25
20
15
10
5
0

(FY)

11

12

13

14

15

Toyota 1KD industrial diesel engine

Aiming to Bring Satisfaction to More
Customers
In November 2014, TMC and Toyota Industries agreed togradually consolidate diesel engine development andproduction functions into the operations of Toyota Industries.
Prior to this decision, Toyota Industries has been
carrying out development of next-generation automobile
engines that can clear Euro 6 and other stringent emission
standards, as well as engines for materials handlingequipment and general purposes featuring greater fuelefficiency and lower costs. Taking this opportunity, we will
step up our efforts to achieve shorter development cycles
with improved efficiency in order to develop and produce
diesel engines with greater competitiveness.
For our general-purpose engines, we will plan, develop
and produce a lineup of products matched to customers’
needs while actively promoting sales activities.

46

Toyota Industries Report 2015

In the conventional way of simply developing and evaluating
car air-conditioning compressors alone, we can only capture
certain properties and may not be able to meet customer
needs sufficiently. To counter the situation, we started
creating our own experimental facilities in-house that canreplicate a more realistic vehicle environment. By doing so,
we can respond to customer needs more precisely andquickly while clearly clarifying our outstanding productstrengths through more accurate product evaluation. The
creation of experimental facilities internally also enables us toplace our original technologies in a “black box” and prevent
external leaks of our know-how and expertise. To further

SCSE06 compressor (fixed-displacement scroll type)

Development Efforts Based on 3Es(Energy, Environmental Protection and
Ecological Thinking)More stringent fuel efficiency standards have been enforcedin North America, Europe, Japan and China, requiring
automobiles to provide extremely high fuel efficiency
performance.
Against this backdrop, in the field of car air-conditioning
compressors to be fitted in internal-combustion vehicles, theneed for fuel-efficient models is growing for both fixed- andvariable-displacement type compressors. In North America,
in particular, the shift from a fixed-displacement type to avariable-displacement type gained further momentum.
In response, we are concentrating on development ofa variable-displacement type compressor with considerably
greater fuel efficiency while also focusing on an optimum
balance between performance and prices of fixeddisplacement typeproducts targeting
emerging
countries.
In the field ofvariabledisplacement typecompressors, wedeveloped the SES
series that
6SES14 compressor (variable-displacement type)

Since initially being installed in the second-generation
Prius, our electric compressors for hybrid vehicles (HVs) andEVs have been fitted in all of TMC’s HVs from the thirdgeneration Prius to the LS600h.
To offer attractive products to the growing number of
automakers worldwide now actively engaged in thedevelopment of HVs, we developed the ESA series, which iseven more compact and fuel efficient. In addition, a change
in its structure makes it easier to mount on vehicles. The
ESA series has been installed in HVs of Ford Motorn Worldwide Bases of Car Air-Conditioning Compressors (As of March 31, 2015)

TDDK
DNDE

Germany

Germany

YST

DICH

MACI

China

China

U.S.A.

DIAM

U.S.A.

DSIT

Italy

TICO

DNTS

Japan

Italy
SUBROS

TACK

India

China

TACG

U.S.A.
TICA

U.S.A.

TACI

Indonesia

DNBR

BrazilConsolidated production bases

Licensed manufacturers

Technical service stations

Toyota Industries’ car air-conditioning compressors are widely adopted by automakers around the world, garnering the No. 1* position in global sales.
* Survey by Toyota Industries Corporation47

increase our competitive edge, we will launch this initiativeon a full scale at our bases in and outside Japan.

Net sales of car electronics products grew steadily due
primarily to solid sales of products for the Toyota Prius,
Aqua (Prius c in North America and Yaris Hybrid in
Europe) and other HVs.

Expanding Experience and Role in ElectricPowered Vehicle Field(See Special Feature 1 on pages 26–29 for details.)

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

Auxiliary Power Source Devices

Local design operations at MACIA 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. Since being first
fitted in the first-generation Prius, we have been constantly
working to reduce the product size and weight.

Establishing Optimum Global Production and
Supply Structures
To respond to growing demand for variable-displacement
type compressors triggered by the anticipated enforcementof more stringent fuel efficiency standards, we areproceeding with augmentation of corresponding production
capacities and commenced local production of key
functional parts at our production bases in North America.
In Europe, the ASEAN countries and China as well, weare expanding production capacities and increasing the ratioof locally procured parts to accommodate growing demandfor car air-conditioning compressors.
In increasing our production capacities at these bases,
we have introduced more compact production lines andestablished an efficient production structure that can flexibly
respond to production volume fluctuations. In the future, wewill use these compact production lines as a model andgradually install them in other production bases in andoutside Japan.

48

Toyota Industries Report 2015

Core Components for Drive Systems

Charging Infrastructure
Jointly with Nitto Kogyo Corporation, we developed publicuse charging stands and home-use charging units for PHVs
and EVs. These chargers are being sold in the market.
In May 2015, we announced the release of a new publicuse charging stand and exhibited the product at Automotive
Engineering Exposition 2015. The new charging standconsists of one parent unit that offers charging functionality
as well as such features as communication, IC card-baseduser authentication and billing, and multiple low-cost,charging-only child units. Besides the existing model’s
features, the parent unit has an additional capability tocontrol up to 10 child units, thereby reducing the initial costs
of installing multiple charging stands.
We are positioning this new charging stand as astandard model of the charging infrastructure and will strive
to enhance its functionality and our service lineup to ensurethat we continue to satisfy customer needs.

Automobile

We station our sales engineers in the United States,
Germany, Italy, China and Brazil and provide technicalsupport locally. Through these technical support efforts, we
promote sales expansion and activities to prevent quality
issues from occurring.
In fiscal 2014, two of our consolidated subsidiaries,
namely, Michigan Automotive Compressor, Inc. (MACI) in the
United States and TD Deutsche Klimakompressor GmbH(TDDK) in Germany, began to conduct design operations
locally. By designing products locally, we help automakers
reduce development lead time.

Business Overview in Fiscal 2015

commencing production in 1995, we have achieved
cumulative production of 14 million units in March 2015.
We have developed an on-board charger based on our
technologies and cultivated know-how regarding EV
chargers developed since the 1990s. The resulting on-board
charger is fitted in the Prius Plug-in Hybrid.
In addition, we develop and produce inverters for electric
car air-conditioning compressors for HVs and other electricpowered vehicles. These inverters have been contributing toincreasing the product appeal of our car air-conditioning
compressors.
We have also leveraged our inverter technologies related
to electric car air-conditioning compressors and successfully
developed a highly efficient, low-cost inverter for hydrogen
circulation pumps. The new inverter has been adopted in
TMC’s MIRAI FCV.

Business Activities

Augmenting Technical Support Capabilities

Car Electronics

Since 1967, we have been providing inverters for materials
handling equipment and accumulating a pool of powerelectronics technologies.
Utilizing such technologies, Toyota Industries applied its
proprietary direct-cooling method to develop a device withsignificantly higher cooling performance in 2009. We haveentered the field of core components for drive systems suchas power control units (PCUs) for the third-generation Prius.
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 of functional components,
such as an inverter, motor and reduction 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 theadded value as an entire system.
Parent unit

Child unit

New charging stand for PHVs and EVs

Accelerating Development Activities toContribute to Low-Carbon Society

DC-DC converter fitted in the Aqua

Leveraging our technologies accumulated in the field of
DC-DC converters for HVs, we successfully developed andcommenced sales of a DC-DC converter for use with startstop systems, which can suppress a voltage drop at thetime of engine restart, and have been promoting its sales toautomakers.
A DC-AC inverter is equipped to use home electric
appliances in a vehicle, and has drawn a great deal of publicrecognition for its use as an emergency power source
following the Great East Japan Earthquake. Since

Powertrain unit for EVs

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

49

Textile Machinery
Based on the philosophy of founder Sakichi Toyoda,
which reflects his strong commitment tomanufacturing, Toyota Industries responds to a broad
range of needs with its extensive product lineup, fromair-jet looms, for which we enjoy the world-leading
market share*1 in unit sales, to ring spinning frames
and roving frames.
*1: Survey by Toyota Industries Corporation

Business Overview in Fiscal 2015
The textile machinery market remained stagnant as
economic growth slowed down in China and emerging
countries in Asia. Despite an increase in sales of yarn
quality measurement instruments, unit sales of air-jet
looms declined 3,500 units, or 38% year-on-year, to 5,800
units. Net sales were down ¥5.0 billion, or 7%, from theprevious fiscal year to ¥68.1 billion.
Air-Jet Loom Sales

India, commenced in October 2014 production of the
RX300 ring spinning frame to be exported throughout theworld. Producing the RX300 in India, which is one of the twolargest spinning machinery markets in the world, enables us
to be closer to our customers, thereby contributing toenhancing our services and improving logistics efficiency.

Participation in ITMA ASIA + CITME 2014
In June 2014, Toyota Industries participated in ITMA ASIA +CITME 2014, one of the largest textile machinery tradeshows in Asia. The event was held in Shanghai, China, oneof the world’s largest textile markets, with 1,556 companies
participating from 28 countries, including China, India and
Bangladesh, and the attendance of more than 100,000
visitors. At this exhibition, we displayed our JAT810 air-jet
loom, the TCO12 comber and various other products andappealed the excellence of these products’ basic
performance and reliability. We also demonstrated thecapability of the RX300 high-speed ring spinning frame to
produce a new spun yarn called mosaic yarn*2 and received
favorable feedback from many visitors.
Through participation in these exhibitions, we willcontinue to appeal our excellent technological capabilities
and environmental performance in our efforts to earn ahigher level of customer trust. We also aim to meetcustomer expectations by developing textile machinery that
produces even higher value-added textile products throughthe pursuit of advanced technologies and continuous
creativity and ingenuity as
well as by providing
meticulous after-sales
services via an enhanced
service structure.
*2: A new type of yarn developed by
Toyota Industries, which is made byjoining normal roving yarns andchopped roving yarns, offering aconsiderable degree of freedom in colorand design choices(Thousand units)

10
8

ITMA ASIA + CITME 2014

6

T OPIC

4
2
0

(FY)

11

12

13

14

15

Business Development of Weaving andSpinning Machinery
In the field of weaving machinery, we introduced an
improved electronic shedding device to our JAT810 air-jet
loom, for which we enjoy the world’s top market share. This
shedding device serves to increase textile variations byenabling the weaving of fabrics with complex patterns.
In the field of spinning machinery, Kirloskar Toyota Textile
Machinery Pvt. Ltd. (KTTM), a consolidated subsidiary in

50

Toyota Industries Report 2015

Acquisition of Jossi Systems AG to
Reinforce Product Appeal
Uster Technologies AG, a Swiss-based consolidated
subsidiary producing yarn quality measurement
instruments, acquired Jossi Systems AG, a Swisscompany developing and producing systems forcleaning cotton and removing contaminating materials
in the spinning process. By making Jossi Systems into
its subsidiary, USTER has become the world’s only
manufacturer capable of managing cotton cleaning andcontaminant removal throughout the entire spinning
process. In the future, USTER will leverage thestrengths of Jossi Systems to further strengthen its
position as the world-leading manufacturer of yarn
quality measurement instruments.