Toyota: Driving forward in the Asian market

Toyota Motor Corporation (TMC) is today the world's second largest automaker (including sales of its half-owned subsidiary Daihatsu and Hino) and the world's eighth largest company by revenue. TMC is expected to become the world's largest automaker in 2007 by reaching a stated goal of producing 9.4 million vehicles.

As TMC's business develops internationally, the corporation's Asian operations are becoming increasingly important due to several fast-growing Southeast Asian countries' demands for quality automobiles.

With popular models such as the Prius, Yaris, Vios, Corolla and the award-winning Lexus range, Toyota has set the standard for safe, innovative and high-performance cars throughout the world. Asia is considered to be a market very open to new designs and innovations, and the Toyota driving experience is in high demand throughout the region.

As a global leader in automobile manufacturing with a highly regarded brand image, TMC regards the Asia market as its "backyard". Recognizing the Asia-Pacific as the fastest-growing market for automobile sales worldwide, TMC has focused its attention on the region through Toyota Motor Asia Pacific (TMAP) and is ready to take on the challenges of Asia's regional markets.

"We consider Asia the fastest-growing market worldwide. Not only is our Asian operation an important market but it is also unique in its strength as a manufacturing base to supply the region and beyond," says Ryoichi Sasaki, president of TMAP.

Due to the increasing importance of the Asia-Pacific region, TMAP has made a number of important changes to the region's operations. Since becoming president of TMAP in July of 2006, Sasaki has focused on building a self-sufficient regional operation.

For this region, Bangkok has been home to research and development (R&D) activities since 2004. In 2006, TMAP expanded the Bangkok operations to include manufacturing support.

In addition to the two operations in Bangkok, Singapore has maintained its role of heading regional marketing and logistics.

"The importance of the total operation in Singapore will never change," comments Sasaki. "Due to the business environment and infrastructure capabilities in place, Singapore will always be a vital hub to our Asia-Pacific operations."

With this new structure in place, Sasaki and his management team have integrated the varying functions of the region into a workable regional headquarters, which is capable of providing timely assistance to the different country offices throughout the region.

"Prior to the changes we have implemented, there was no framework for individual country offices to work on a regional basis," explains Sasaki. "Each country would simply have to report to Toyota Japan and face the challenges of functioning as very separate entities. We feel it is vital to our business in the region to create a regional network which allows each country to work more efficiently."

This new streamlined operation has come at an opportune time. Last year saw Asian automakers dealing with challenging political factors throughout the region in addition to rising oil prices. Yet despite these challenges, Sasaki is confident about the future.

"As a company, we are well prepared for any short-term challenges which may affect our business within the region. We are preparing ourselves now to face the mid- to long-term challenges with a stronger business model and I am very optimistic the company has strong potential for growth throughout the region."

TMAP's open and innovative management style is ensuring a more efficient and effective operation in Southeast Asia, benefiting both customers and employees. Most importantly, Sasaki plans to maintain Toyota's respected position in the Asian automobile market.

"As we look toward our future within the Asian marketplace, TMAP is aware of the need to adapt to changes in the market and respond to our customers' needs. With our group's transformation and continued growth, we look forward to continued success in the region and intend to further develop the business in line with our strategies for growth. On a local level meanwhile, in striving to be a good corporate citizen, we are making continuous efforts to become accepted, respected and welcomed by getting truly involved within the communities in which we operate."

For more information, please visit: www.toyotasingapore.com.sg

(China Daily 03/12/2007 page2)