Toyota aims to make half of its global sales in emerging markets by 2015 and is looking for an operating profit of JPY1 trillion (US$12bn) “as soon as possible”.
Unveiling the company’s “Global Vision”, company president Akio Toyoda said he wanted China to eventually account for 15% of its global sales, AFP reported.
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Toyota’s new plan is aimed at marking a new chapter for the world’s largest automaker after it was hit by the global financial crisis and millions of recalls.
It identified emerging markets and environmentally friendly cars as the key pillars of its new strategy.
In 2010 emerging markets made up 40% of Toyota’s sales.
“By increasing our sales in emerging markets, (Toyota wants to) achieve a balanced sales portfolio among Japan, the United States, Europe and emerging markets,” the company said.
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By GlobalDataAn operating profit of about JPY1 trillion would be nearly double the JPY550bn yen operating profit projected for the current fiscal year, AFP noted.
The automaker will reduce the number of its board directors to 11 from the current 27 in an effort to speed up decision making, after Toyota last year announced steps to reshape global operations to improve the recall process.
Ratings agency Standard & Poor’s last week downgraded the carmaker to AA- from AA, citing “weak profitability”.
Toyota said it would launch 10 new petrol-electric hybrid vehicles by 2015, while developing next-generation environmentally friendly cars, such as plug-in hybrids and electric vehicles.
”The areas in which we will work actively toward 2015 are eco-friendly cars and emerging nations,” Kyodo News quoted Toyoda as saying at a news conference in Tokyo.
He expected sales of the Toyota group – including Daihatsu and Hino – to be 10m units in 2015.
Toyoda also wants to lift the operating profit ratio to sales to 5% from an estimated 2.9% for the current fiscal year.
Toyoda said the automaker will raise profitability to achieve its goals even in severe situations where the dollar is weak at JPY85 and its sales volume 7.5m.
”This is the bottom line for a sustainable growth as we aim to build a structure to generate profits when our sales fall by about 20% in case we see another major economic downturn,” Toyoda said.
