Tittle Toyota Motors

Supervised by:

Lecturer
Department of Management Sciences
Islmia University of Bahawalpur
Submitted By:
 Dedication

I dedicated this research project to my beloved parents

Who are source of inspiration and door of heaven for me.

They always praying for me, for my success, and make me strong in difficult moments of life.
 Acknowledgement

All gratitude and thanks to Almighty ALLAH the Gracious, the most Merciful and Beneficent
who gave me courage to undertake and complete this task.

I am going to make a project on Toyota motors, and also acknowledgement of Toyota company.

All my thanks are due to my guide and supervisor,I feel a great sense of gratefulness for his
enthusiastic, intellectual and sincere guidance without which this research work would have not
been completed in its present form.

I am happy that my friends can now finally read about what I have been doing. I want to say
thanks my parents for all support that they gave me during the time period I have been working
on this project.
 Declaration

I, Arslan-ul-hassan, Roll No. 244 is the student of BBA 8 th R2 in Management

Sciences ranger campus, Session 2011 2015, hereby undertaken that, I have
written this project entitled, Toyota motors: Project on Toyota motors
Bahawalpur by myself under the guidance of my supervisor I have read it
carefully and get all the responsibilities of the mistakes. This thesis is submitted to
the Department of Management Sciences,

.
 Certificate

This project submitted by on topic, Toyota motors is accepted in this present form by the
Department of Management Sciences, The Islamia University of Bahawalpur ranger campus.

Supervisor:

External Examiner:

Chairman/ HOD:

Department of Management Sciences

The Islamia University of Bahawalpur
Table of Contents
Dedication............................................................................................................... 2

Acknowledgement................................................................................................... 3

Declaration............................................................................................................. 4

Certificate............................................................................................................... 5

Executive summary................................................................................................ 8

Section 1................................................................................................................. 9

INTRODUCTION....................................................................................................... 9

1.1 Background of the study............................................................................ 9

1.2 why toyota motors?.................................................................................. 10

Section 2

Methodology......................................................................................................... 10

2.1 Research design....................................................................................... 10

2.2 Research Techniques................................................................................ 11

Section 3

3.1 Over view of the organization 12

3.2 information of the corporation

12

3.4 STP.13

3.5 History & Contribution.............................................................................. 13

3.6 Research work on toyota....................................................................14

3.7 Renown People who start their career from Toyota motor..................14

3.8 Aim and Objectives of the study...............................................................14

3.9 Scope and Limitation................................................................................ 15

3.10 Organization of the study.........................................................................16

section 4

4.1 SWOT analysis of Toyota

motors17,18

4.2 Problems of
Toyota
19,20

Section 5................................................................................................................

5.1 Suggestions and Recommendations.........................................................21

5.3CONCLUSION.................................................................................................... 22

5.4 References...................................................................................................... 22

Annexure...................................................................................................................
 Executive Summary

The start of production of the Toyota Auris Hybrid Synergy Drive marks the first rollout of full
hybrid technology in Europe. The vehicle has category-leading fuel consumption of 3.8 l/100 km
and emissions of 89 CO2 g/km. The cars lifecycle CO 2 emissions over a distance of 150,000
kilometres are 33% less than the Auris petrol model and 25% less than the Auris diesel model.
The European PHV project is a part of a global Toyota project involving more than 600 Prius
Plug-in Hybrid Vehicles that are also being tested in Japan, the US, Canada and Australia. The
European project is leasing 200 (of the 600 vehicles) to selected partners and customers in 18
European countries, who will road test the vehicles. Toyotas main objective is to further
investigate the technology and performance of the PHV with respect to the customers needs. A
Special Committee for Global Quality was established. Didier Leroy was appointed Chief
Quality Officer to lead the process with this issue and to re-instate Toyotas reputation for
quality, durability and reliability and Customer First attention. The crisis, while challenging,
was an opportunity for Toyota to demonstrate our commitment towards making every effort to
maintain stable employment and improve mutual trust and understanding with our employees
through thorough communication and long-term development.
Section 1

INTRODUCTION
1.1 Background of the study
In the world trade, Automobile Sector is one of the largest segments. It is the major driver
of economic growth and business activities. It puts multiplier impacts on the economy. Day-in,
day-out around 200,000 vehicles roll off the worlds assembly lines with car as the dominant
segment of the industry.The automobile sector has been registering high growth for the last four
or five years due to thecountry's business friendly policies along with lower tariff rates, persistent
growth in GDP, and per capita income. The automotive industry rightly prides itself on being
recognized as themother of all industries. In its folds it carries many different kinds of vehicles
to providemobility to people and goods. While they may appear to be simple machines, their
design andmanufacturing have much deeper roots in all the known technologies. In-depth
knowledge and skillful application of mechanical, electrical, electronics, chemical and a host of
other technologies culminate in achievement and improvement of the manufacturing base of a
country, by focusing on a single product the automobile. This then provides an opportunity to
produce alarge number of goods and services for consumption of the entire international
community.The models of Toyota 1300cc car has been able to achieve the popularity level
among car lovers in Pakistan as the company expected before its import, the companies source
told that "The sales of Toyota Corolla vehicle have Raised, Before introducing Toyota Corolla
1300cc cars, the Toyota company has completely vanished its most popular brand Corolla whose
demand was up throughout the country. The demand for old Corolla cars is still moving up in the
second-hand car markets.

1.2 Why Toyota motors?

As Toyota motors are one of the fastest growing company in Pakistan
which are manufactureing their products on national and international level .i
have chosen Toyota motors because it is the one of the most emerging
company in Pakistan which is situated all over the Pakistan and also
international level. However Toyota is producing their product on global
level and their products are(Toyota GLi, Xli,Toyota 4runner,etc) have
stronge market equity and market share in international level.

1.3 Aim and Objectives of the study

The manufacture and sales of motor vehicles.
The steel and iron manufacture and other refining operations.
The manufacture and sale of aircraft, textile machinery, and general machinery;
Investment in and financing of other business with objectives related to the preceding
items.

1.4 Limitation

There are numbers of limitations, while this research project, few of them are,

Time

Constraints

Capital constraints

These constrains may affect results and analysis.

1.5 Organization of the study

This first section addressed the background of the study & organization, aims and
objectives of the study. Section 2 provides methodology of the project, in which we discussed the
research design and techniques. Section 3 will be consisting of overview of Toyota Motors,
history and past research done on Toyota.. Section 4 tells about the SWOT analysis of Toyota.,
and Section 5 defines our findings and results.
Section 2

METHODOLOGY

2.1 Research Design

In order to address the question of what research methodology should be there, first of all
it is important to understand the objectives and purpose of this research project.

2.2 Research Technique

A qualitative technique is adopted in this research project. In-depth interviews were taken
from general public and management in order to gain deeper insights about brand perception of
Toyota motor, future of motors industry, future of Toyota and preferences of people while
purchasing Toyota motors. This study used research based methodology. The data is collected
from secondary resources i.e., Annual reports, Internship reports, websites, etc.
Section 3

TOYOTA MOTORS
3.1 Over view of the organization
Indus Motor Company Limited (IMC) incorporated in 1989 as a joint venture company
between the between the House of Habib (HOH), a local conglomerate and Toyota Motor
Corporation (TMC) and Toyota Tsusho Corporation (TTC) of Japan. The company manufactures
and markets Toyota brand vehicles in Pakistan. The main product offerings include several
variants of the flagship Corolla in the passenger cars category, Hilux in the light commercial
vehicles segment and Fortuner in Sport Utility Vehicle (SUV) segment. The Company also
sells limited units of Daihatsu brand vehicles.The manufacturing facility and offices are located
at a 105 acre site in Port Qasim, Karachi, while the product is delivered to end customers
nationwide through a strong network of 39 independent 3S dealerships spread across the country.
In its 25 years history since inception, IMC has sold more than 500,000 CBU/CKD vehicles and
has demonstrated an impressive growth, in terms of volumetric increase from a modes beginning
of 20 vehicles per day production in 1993 to 220 units daily at present through the development
of human talent embracing the Toyota Way of quality and lean manufacturing. Over the years,
IMC has made large scale investments in enhancing its own capacity and in meeting customer
requirements for new products. Today, Corolla is the largest selling automotive brand model in
Pakistan and it also has the distinction of being #1 in Toyotas Asian market.

3.2 Corporation Information

Present company Toyota motors

Category Automobile Sector

Tagline/slogan Lets go for places

USP Providing best quality automobiles.

3.3 STP
SEGMENT Bahawalpur, Lahore, Karachi all over the Pakistan.

TARGET Students, Religious and Political people throughout the

Pakistan

POSITION Toyota reclaims position as world's biggest car maker.

3.4 Competitors of Toyota Motors

Major competitors of Toyota are;

Honda
Suzuki
Ford

3.5 History & Contribution

Toyota started in 1933 as a division of Toyota Automatic appears works devoted to the
production of automobiles under the direction of the founders son, Kiichiro Toyoda. Its first
vehicles were the A1 passenger car and the G1 in 1935. Toyota Motor Co. was established as an
independent company in 1937. In 2008, Toyota's sales surpassed General Motors, making Toyota
number one in the world. On May 8, 2009, Toyota reported a record annual net loss of US$4.2
billion, making it the latest automobile maker to be severely affected by the global financial
crisis that started from 2007.

From November 2009 through the first quarter of 2010. Toyota recalled more than 8 million cars
and trucks worldwide in several recall campaigns, and briefly halted production and sales. The
US Sales Chief, James Lentz, was question by the United States Congress committees on
Oversight and Investigations on February 23, 2010, as a result of recent recalls. On February 24,
2010, Toyota CEO Akio Toyoda testify before the House Committee on Oversight and
Government Reform. On April 6, 2010, The US government sought a record penalty of 16.375
million from Toyota for its delayed response in notifying the National Highway Traffic Safety
Administration regarding the defective accelerator pedals. On May 18, 2010, Toyota paid the
fine without an admission of wrongdoing. The record fine and the high profile hearings caused
accusations of conflict of interest. Senior managing director Takahiko Ijichi said that recall-
related costs in the financial year that ended March 2010 totaled 1.93 billion (180 billion). On
March 31, 2011, the Toyota Factory in Onnaing, France, was hit by a strike of several hundred
workers asking for more pay.The company was founded by Kiichiro Toyoda in 1937 as a spinoff
from his father's company Toyota Industries to create automobiles. Three years earlier, in 1934,
while still a department of Toyota Industries, it created its first product, the Type A engine, and,
in 1936, its first passenger car, the Toyota AA. Toyota Motor Corporation group companies are
Toyota (including the Scion brand), Lexus, Daihatsu and Hino Motors, along with several "non-
automotive" companies.TMC is part of the Toyota Group, one of the largest conglomerates in the
world.Toyota Motor Corporation is headquartered in Toyota City, Aichi and in Tokyo. Its Tokyo
head office is located at 1-4-18 Koraku, Bunkyo-ku, Tokyo 112-8701, Japan. Nagoya Office at 4-
7-1 Meieki, Nakamura-ku, Nagoya City, Aichi Prefecture. In addition to manufacturing
automobiles, Toyota provides financial services through its Toyota Financial Services division
and also builds robots.

3.6 Research work on Toyota

This is a business research on the Toyota Motor Company. It will explore whether the
Toyota company is a good investment. People from every corner of the globe recognize the
brand name Toyota. Arising from the humblest circumstances, the company successfully
surmounted sizable obstacles to achieve its status as one of the most successful and well-known
companies in the world. The recent introduction of the highly successful Lexus luxury line
paired with the consistent achievement of industry acclaim and record-breaking sales garnered
by the Camry sedan appeared to have guaranteed the company a prominent place along side an
elite group of seemingly invincible international corporations.

3.7 Renown People who start their career from TOYOTA

At Toyota Central Motors we groom peoples strengths, and provide the right technical and
professional training as we want our people to excel and to make them perform to an
exceptional standard. Our award winning Learning & Talent Development team is always
ready and pleased to train new staff and tries to make newly hired feel working under
internationally followed standard.
President of Toyota Motor Industries:

Akio Toyoda, CEO Toyota Motor Corporation, at the annual results press conference May
11, 2011

Rizaburo Toyoda (19371941)

Kiichiro Toyoda (19411950)

Taizo Ishida (19501961)

Fukio Nakagawa (19611967)

Madiha Shamim (August 2012 March 2014,Toyota Motors, Pakistan)

Section 4

S.W.O.T Analysis of Toyota

4.1 Strengths:

1. Innovative Culture: Toyota is one of the most innovative auto companies and has a strong
culture that is focused on constant innovation. The company was the first to introduce Kaizen,
Kanban and Total quality Management systems widely in their organization. The company was
the first to mass-produce and sell hybrid vehicles too.
2. Brand reputation valued at $30 billion: Toyotas brand is the most valued automotive brand
in the world. The business is known for its environmentally friendly, safe and durable cars that
are sold in more than 170 countries.

3. Industry leader in production and sales: Toyota was the first company to introduce lean
manufacturing and total quality management practices in manufacturing process. For some time,
the company was the only practitioner of these practices and had the lowest manufacturing and
production costs worldwide. Although many manufacturers were able to replicate Toyotas lean
manufacturing system, the company is still one of the most profitable manufacturers in the
world.

4. Strong brand portfolio: Toyota currently sells about 70 different models of cars under its
namesake brand. This does not only increase brands awareness but also satisfies nearly every
consumer group needs. Toyotas flagship models are Corolla and Prius.

5. The leader in green cars development: Toyota understands that environmental friendly
cars are the necessity nowadays. Consumers are more selective in terms of CO2 emissions and
fuel-efficiency of the cars they buy and Toyotas early move towards selling hybrid and efficient
cars is the strength few competitors can match.

4.2 Weaknesses:

1. Large-scale recalls: Toyota had quite a few large-scale vehicle recalls over the past few years.
The business recalled 9 million vehicles in 2009-2010 and 7.43 million cars in 2012. Such recalls
does not only hurt the firm financially but significantly damages firms brand.

2. Weak presence in the emerging markets: Toyotas main markets are Japan, US and Europe,
while such emerging economies as China or India make only a small percentage of all Toyotas
sales. Due to poor presence in the largest automobile market (China), Toyota will find it hard to
compete with GM that has huge market share there.
4.3 Opportunities:

1. Positive attitude towards green vehicles: Today consumers are more aware of the
negative effects (air pollution) caused by cars. Large quantities of CO2 emissions intensify
greenhouse effect and negatively impact the life on earth. Thus, consumers are more likely to
buy new hybrid and electric cars that emit less CO2.

2. Increasing fuel prices: Increasing fuel prices open up large markets for Toyotas hybrid cars
as consumers shift towards efficient cars.

3. Changing customer needs: By introducing new car models, Toyota could satisfy varying
consumers tastes and needs and access wider customer group.

4. Growth through acquisitions: Toyota has successfully acquired other car companies in the
past and should continue doing so to grow, gain new skills, assets and access to new markets.

4.4 Threats:

1. Decreasing fuel prices: There is high possibility that future fuel prices will drop, as more
shale gas will be extracted. For this reason, fuel-efficient hybrid and electric cars will become
less attractive to cost conscious consumers that are the main customer group for Toyotas Prius
model.

2. New emission standards: New emission standards introduced by the government would
require more investments into producing cleaner engines. More investments mean less profit for
Toyota.

3. Rising raw material prices: Rising raw material prices are especially important to
automobiles manufacturers. Higher prices mean higher costs and less profit for Toyota as the raw
metals are the main components in car manufacturing.

4. Intense competition: Toyota faces more intense competition from other auto manufacturers
more than ever. Volkswagen group is strongly growing and GM steps up after its reorganization
to become more competitive than ever.
5. Natural disasters: Toyotas has manufacturing facilities in Japan, Thailand, China and
Indonesia. These countries, including others, are often subject to natural disasters that disrupt
manufacturing in the facilities and decrease Toyotas production volumes.

6. Appreciating yen exchange rate: Most of Toyotas revenue comes from foreign countries.
The profits earned abroad must be sent back to Japan and converted to yen. Appreciating yen
exchange rate against other currencies means lower profits for Toyota.

Problems

1). Large-scale recalls: Toyota had quite a few large-scale vehicle recalls over the past few
years. The business recalled 9 million vehicles in 2009-2010 and 7.43 million cars in 2012. Such
recalls does not only hurt the firm financially but significantly damages firms brand.

2) Weak presence in the emerging markets: Toyotas main markets are Japan, US and Europe,
while such emerging economies as China or India make only a small percentage of all Toyotas
sales. Due to poor presence in the largest automobile market (China), Toyota will find it hard to
compete with GM that has huge market share there.

3) Lack of Agents:

The lack of Agents is main issue/problem of Toyota motor .lack of agents people have not
information about toyota motors. If Toyota motors make their agents in every city of Pakistan, so
Toyota can solves the problem of lack of peoples interaction.

4) Time and distance

If you don't do a lot of kilometers (and keep in mind the average Australian driver only does
14,600per year) you should have your Toyota serviced according to the recommended time based
service intervals. Short, stop-start journeys are one of the hardest forms of work an engine can
endure. Since the engine doesn't get up to optimal operating temperature for any real period of
time it can't burn off the by-products of combustion. This can lead to a reduction in the oils
efficiency to lubricate which, in turn, can lead to premature engine wear and possible engine
failure.

6) Poor Raw Material

Toyota Islamabad Motors who accepted that the hood issue was a manufacturing fault and
offered to repair it rather than replacing the hood. At this instance, anyone wouldve gone mad.
We bought a new car, the decent thing from Toyotas end would be to replace the hood but
Toyota was adamant to have it repaired and after exhausting all his resources, the Stealer ship
said that they will repair the hood dent but why would anyone repair something on he bought
brand new.

Software Issue

Toyota recalled 112,500 vehicles due to power steering and electric software issue. Among the
affected are 110,000 Camrys, Highlanders, and their hybrid versions from 2015,and RAV4 from
model year 2014 and 2015.

Section 5

QUALITATIVE RESULTS OF THE STUDY

In order to find the solution of the problems which were arising in the Toyota motors were taken
from the different people of organization having different designation and posts in theo
rganization. The interview was collected both public and executive and labor of the organization
and somewhat from the general public.

5.1 General Management

General Manager mechanical is the charge of mechanical assembly line of Toyota motors. He is
responsible for the manufacture of Toyota motors and also criteria of Toyota motors. The
interview was taken from him and the following question was asked from them that
5.2 Public relation

Toyota motors are a one of best famous motor in Pakistan and also in international level. Toyota
motors public relation is a little bit more, thats why Toyota motors suffering loss of problem. I
asked questions from the public how Toyota motors going in Pakistan. And what is Toyota going
for ur relation? They replied to us Toyota is not going well due to the lack of interaction with
peoples.

5.3 Marketing strategies

Toyota motor strategies are segmentation, targeting and positioning.so the main question that I
asked from the peoples, how Toyota motors cover his strategies all over the Pakistan? And what
are their promotion strategies? They replied to us Toyota motor doing well all over the Pakistan
segmentation well targeting well and positioning well, but promotional strategies not well.
Because Toyota motors not making aids properly thats a lack of promotions. Toyota motors
giving prefer to the print media (newspaper) that is main problem of Toyota motors.
Section 6
CONCLUSION

6.1. Recommendations and suggestions

Toyota motors is the Market leader in is category, they have very talented and experience top
management and staff. Most of the processes and things happening at Toyota very well planned
and judged but there are certain areas of improvement in any field. The things that research
suggests for improvement are;

Toyota motors is following a typical set of pattern in its productions and this pattern remain
exactly the same throughout its history, although Toyota buyers are also distinctive and they are
following and addicted to this pattern but there are other competitors that are offering somewhat
more attractive and diversified material.

What I have observed about Toyota it is claimed to be the most neutral, unbiased and impartial
poor raw material, following this pattern never tried to make any Investigating Reporting. Toyota
motors should also make efforts to match the buyers expectations.

As compared to other motors companies although having the best production facilities, look the
very light and least catchy. Toyota motors should also focus on this area to make it look more
bright and colorful.

Toyota motors should be create their agents in every city of the Pakistan. Through these pattern
toyota motors can generate their productions and also can increase their interaction with peoples.

Toyota motors is a main problem is lack of advertising of products.That,s why its not working
on these types of pattern. Toyota motors should be contracts with news channels also all over the
world.it will be very such a increasing tools for productions of Toyota motors.
6.2 Limitations

European, and other automakers, not all Japanese companies have been able or willing to follow
fully the standards set by Toyota in manufacturing or Honda in product development. Both
Toyota and Honda have a unique history and geographic setting that have facilitated practices
such as Toyotas famous JIT and Kanban systems or Hondas product development system. Other
Japanese firms, such as Nissan, encountered some of the problems that JIT and Kanban create
when they first tried to introduce the techniques into their own organizations during the 1970s.
Similarly, no Japanese automaker has matched the product development performance of Honda
(at least for models introduced in Japan). There are several reasons why many Japanese, as well
as non-Japanese, firms have been unable or unwilling to follow the lean principles to their fullest
extent. There are also several solutions or countermeasures to deal with the problems of lean
management taken to the extreme. The Japanese firms are currently exploring these alternatives,
in autos and in other industries.

6.3 Conclusion

Produres or working of Toyota motors is not much absorbed accord to the marketing theories in
terms of marketing strategies.But Toyota motors is one of the best motors company in Pakistan
and also in international levels. They are chief market with a large numbers of consumer and a
strong brand.
 References

https://www.google.com

https://en.wikipedia.org/w/index.php?search=toyota+logo&title=Special%3ASearch&go=Go

https://en.wikipedia.org/wiki/Automotive_industry_in_Pakistan

http://www.mmcl.com.pk/html/about_us.html

Special thanks to:

Toyota motors

IUB

Bahawalpur Chamber of commerce and industry: