Toyota's boss: We have entered an era of change

Ahead of the Tokyo Motor Show late this month, Toyoda – who also is president of Toyota Motor Corp – spoke to The Yomiuri Shimbun about the spirit of craftsmanship that has sustained Japanese industry and how domestic firms can stay competitive in the international market. 

The 43rd Tokyo Motor Show will run from November 22 to December 1 at Tokyo Big Sight in Koto Ward. 

Following are excerpts from the interview with Toyoda by Yomiuri Shimbun Economic News editor Takamitsu Saito: 

Yomiuri Shimbun: Many people are looking forward to test drives at this year’s Tokyo Motor Show. 

Akio Toyoda: With advances in digitalisation and information technology in automobiles, we have come into an era of changes. The motor show will feature cars loaded with cutting-edge technologies, such as driving safety support systems (DSSS) and ultra-mini mobility vehicles. Letting people experience new technologies firsthand is more persuasive than giving explanations, I think. Unlike other means of transportation, a car gives the driver more freedom, such as by giving them the ability to step on the accelerator or brake, or choosing their own road to drive down. We want to convey the feeling of “expectations and excitement” that cars can bring. 

This year, JAMA collaborated with CEATEC Japan, the electronic industry’s cutting-edge technology exhibition, and the ITS World Congress, another high-tech exhibition, both held in October. 

We’d like to broadcast the good elements made-in-Japan brands have to the world, beyond the borders of industries or corporations. At CEATEC, automakers had an area where people could try out ultra-mini mobility vehicles. Electronics firms showcased technologies that connect residences and home appliances with automobiles through networks. If the auto and electronics industries can overcome their differences and work together, I feel it will create a great opportunity for Japanese industry to showcase its strengths to the world. 

What is the significance of continuing with domestic production? 

Japan’s auto manufacturers have the ability to produce about 10 million vehicles per year domestically. Toyota will continue production in the 3 million range. We also procure many of our components from various auto parts makers, including midsize, small and even tiny firms. To help the domestic auto industry, including its clients, survive, we need to retain a certain amount of production in the country. 

Overseas production has been increasing because domestic production provides a solid foundation for the companies to do so. We want to protect Japan’s production base at any cost. However, to do so, we must improve the productivity of craftsmanship while developing our competitive edge. 

Have the Abenomics policies of Prime Minister Shinzo Abe improved the business environment?  The biggest change has been in currency exchange rates. Last year, there was too much of a strong-yen trend. I think it’s returned to an appropriate level now. 

To keep the manufacturing sector as one of Japan’s key industries, we’d like the government to support us [with policies that] enable us to say, “Japan is at its most competitive, even compared to other countries.” 

How will a car-oriented society of the future be created? 

Since Japan has a market where many people purchase eco-friendly cars, the 2020 Tokyo Olympics will be a major opportunity. Visitors from abroad will be stunned if almost all the cars on the streets are hybrids, electric vehicles or ultra-mini mobility vehicles. Japan should be proud of the spirit of give-and-take among its drivers. Joint efforts by drivers, the administration that improves the social infrastructure – including roads – and automakers could create a comfortable, enjoyable society. 

Eighty-five per cent of Japan’s roads are narrow – 3.8 metres wide or less. Japan should create a model for the coexistence of regular automobiles, minicars and ultra-mini mobility vehicles.  Many young people today apparently don’t buy or even use cars. 

There are reports that young people are moving away from automobiles, but maybe it’s really the automakers that have moved away from young people. Some students recently told me they now wanted to get a driver’s licence and that they had become more interested in cars. I’d be happy if I helped inspire interest in the auto industry among young people.