Skip to main content

The Success Story of Toyota- The World's Biggest Automobile Brand

A Toyota truck
A Toyota truck (Picture credit: Kelson Downes from Pexels

Welcome to Youth Motivator. I would like to tell you the success story of Toyota.
You will be surprised by the humble story of Toyota by knowing that it all started when its founder read a self-help book.
This story is about the determination and persistence of a young ambitious man who overcame the countless challenges in his life and established the world’s largest automobile brand due to his commitment to excellence since the inception.
This article helps you to propel forward in your life by fueling you with the much needed motivation.
Toyota is globally well known for their affordable and reliable vehicles and you can spot Toyota vehicles in any part of the world.
In terms of revenue, it is the tenth largest company in the world.

Introduction-

Sakichi Toyoda was born on February 14, 1867 in Kosai, Shizuoka, Japan.
He was born into a poor family and his father worked as a farmer and carpenter while his mother worked as a weaver to financially support the family.
The industrial revolution was rapidly taking place in the west and the Japan took notice of this.
So, Japan had two choices either to jump on the bandwagon of the industrial revolution or to be left behind.
Fortunately, Japan chose the former and thus, the Japanese government called for inventors and Sakichi Toyoda was the first person to respond to the call.
During this time, he was in his early twenties.

Getting inspiration from a self-help book-

Sakichi Toyoda was very inspired from a self-help book, in which he read about an inventor who invented the motorised textile machines.
On one day, he returned home after working for his father’s carpentry business and then he observed that his mother was working very hard to weave the clothes.
Sakichi Toyoda realised that an automatic weaving machine would make her life comfortable.
And at that moment, he decided to make inventions to better the loom and thus improve the lives of his family.
But his father opposed his ideas but Sakichi Toyoda persisted and dedicated his complete time and attention to realise his dream of building a loom machine.

His first patent-

During the year 1891, at the age of 24, he earned his first ever patent for the Toyoda power loom, a manually operated loom which was constructed of wood.
This was the first power loom in japan and ran on one horse power oil motor and this machine was very reliable.
So, finally his infinite hours of hard work and dedication paid off.
Sakichi Toyoda caught the attention of the important business men and on May 1906 he founded the Toyoda loom company.
This company was started as a joint stock venture and started earning profits within a short period of time.
Sakichi Toyoda relentlessly worked on improving his manually operated loom and after a period of three years, he came up with a new invention of an automatic loom.
This was the Japan’s first automatic loom.
Sakichi Toyoda was happy to taste his second success.

Losing everything-

But the happy times didn’t last longer as during the year 1910, the economic recession struck Japan.
Sakichi Toyoda was severely impacted by the recession by which he lost all of his assets; his factory, the employees working for him and even the rights for his inventions.
All these developments made him to resign from his very own company.
So after losing everything, Sakichi Toyoda decided to visit United States for some inspiration.

Getting inspired by the automobiles-

In the year 1910, he travelled the Europe and United States.
In the United States, Sakichi Toyoda was stunned by the rapid progress made with the help of the industrial revolution.
He was particularly attracted to the automobiles.
This tour inspired Sakichi Toyoda to start his business afresh.
Later, he returned Japan and in the year 1918, he started his new company, Toyoda Spinning and Weaving.
This was a fully-automated loom company and used to manufacture and sell the cloths.

The first step towards the automobile dream-

The rights of this loom were sold in the year 1929 and in the process Sakichi Toyoda made one million yen.
He wanted to realise his dreams of producing automobiles as he got inspired by the automobiles on his United States visit.

So, Sakichi Toyoda gave this one million yen to his son, Kiichiro Toyoda on a condition that he should only utilise this money to research and develop Japan’s own automobile.
In the initial stages, Kiichiro Toyoda was unconfident but he gained confidence after he toured the United States to observe the prominent automobile producers, much like his father.
After acquiring knowledge, he returned Japan in the year 1930 and started working on producing the automobiles.
During these times, the Japanese government offered incentives to entrepreneurs to manufacture cars.
Unfortunately, on October 30, 1930, Sakichi Toyoda passed away at the age of 63.
And Kiichiro Toyoda became even more determined to realise his father’s dream of making the Japan’s first automobile.
In the late 1930s, Kiichiro Toyoda set up a research lab because he wanted to truly make the Japan’s industry independent and end its reliance on west for technology.
Also, he did not want to take someone’s hard work and employ it for manufacturing cars.
So, Kiichiro Toyoda set up a research lab by which new technologies can be built from scratch.

Spending billions of dollars-

Now, on an annual basis Toyota spends a whopping 9 billion U.S. dollars for the research and development and sometimes, they even spend one million dollars every hour for the same purpose.      
By the year 1933, an automobile department was founded in the Toyoda Automatic Loom Works factory.
And just after a year, they readied the Japan’s first prototype engine for automobiles.
Finally in the year 1935, the dream of Sakichi Toyoda came true with the unveiling of the Model A1, the Toyoda’s first prototype automobile.
The first car Model A1 or Toyota AA was a run-away hit.

Toyoda becomes Toyota-

During this same year, the name Toyoda was converted to Toyota.
The cars were initially named Toyoda after the name of the company’s founder and Toyoda means fertile rice paddies, which does not suit a car manufacturer.
Toyota name was chosen because it required only eight brush strokes to write in Japanese and this number is believed to bring in the luck and prosperity.
Luckily, the luck and prosperity came, when on 28 August 1937, the Toyota Motor Corporation was established.
The Toyota focused on producing more affordable cars than the cars imported by the Ford Motor Company or General Motors.
Consequently, a new plant was set up in Koromo, Japan.
This plant is now called as the Toyota city.

Getting affected by the World War II-

Unfortunately, by the late 1940s, Toyota was on the brink of bankruptcy due to the World War II.
These proceedings made Kiichiro Toyoda to resign from his position and out of respect for him many workers in the Toyota factory resigned voluntarily.           
Luckily, the Korean War saved Toyota because of the Korean War; the U.S. ordered more than 5000 vehicles from Toyota.
This order saved the Toyota Motor Corporation.
Luckily, Toyota became profitable within a few years as its Koromo factory was operating at its full potential.

Making the process more efficient-

During the 1950s, some Toyota managers realised that the American workers were nine times more productive than the Japanese workers.
They also got to know that the inefficient processes were to be blamed not the workers.
So, Toyota streamlined its process which boosted the efficiency and productivity.
At this time, when Toyota was on its road to success, unfortunately Kiichiro Toyoda passed away on 27 March 1952.
The void in leadership was filled when Eiji Toyoda, a cousin of Kiichiro Toyoda and Taiichi Ohno became the in charge of manufacturing.
Both of them carefully examined each and every element of the Toyota plant and they improved production and productivity by a manifold by making some major changes like setting up the machines in the order they were utilised.
Thanks to all the improvements made by Eiji Toyoda and Taiichi Ohno, Toyota became the Japan’s leading automobile manufacturer by the 1950s.
This success motivated Toyota to expand its success story beyond its home country, Japan.

Entering into the United States-

So, to identify opportunities in the foreign lands, Shotaro Kamiya visited U.S. in the year 1955, the world’s biggest automobile market at that time.
In the United States, he noticed that even though United States made large cars, they were importing small cars from the Europe.
Here, Shotaro Kamiya saw an opportunity to introduce Toyota cars as the European cars were a way too expensive.

So, in the year 1958, Toyota shipped its affordable car, Toyopet Crown and also opened its first ever dealership at North America in Hollywood, California.
In the first year, Toyota was not able to make any significant progress in the United States market as it sold less than 300 cars.
But they were quick to realise their mistakes, as they understood that the Toyopet Crown which was originally built for the Japanese market was not at all suitable for the American market.
This model of cars had no issues on the moderate speeds on the Japanese roads but the American highways demanded even more from these cars as a result the cars got overheated and lost their power and would often consume too much fuel.
After this failure, Toyota decided to design cars specifically to the United States market.

Focusing on the Quality control-

This failure resulted in the development of the much acclaimed Total Quality Management (TQM) in the year 1964.
The TQM emphasised on the continuous improvement.
This process was supervised and later implemented by the Kiichiro Toyoda’s elder son, Shoichiro Toyoda.
With the help of the TQM, Toyota was all set to become a world-class company.
And by the 1950s, Toyota was exporting its automobiles to different parts of the world like United States, Brazil, Saudi Arabia, Taiwan, Thailand and Australia.

Toyota tastes the global success-

One of the main strengths of Toyota is performing extensive research on the external markets; this made Toyota to succeed all over the world.
Its principles like Genchi genbutsu, which means go to the source to find the facts to make the correct decisions, helped the company a lot.
And in the year 1964, Toyota released its first generation Corona in the American markets.
A year later, Toyota sold its first vehicle in Canada and during the same year the company was awarded with the Deming Prize for its Total Quality Management.
In the year 1966, Toyota released Corolla, which became its one of the bestselling and popular models of all time.

Successfully surviving the oil crisis-

In year 1973, the oil crisis erupted in the America.
Suddenly, the demand for small and fuel-efficient cars skyrocketed.
This gave Toyota an edge over the American companies.
Due to the oil crisis the car industry needed more fuel efficient cars and the Toyota was already producing the fuel efficient cars.
During this period, many countries discouraged the import of cars from other countries; this forced the Toyota to assemble its cars on the foreign lands.
This made Toyota a truly international company.
Now, Toyota is present in over 170 countries.

Opening the plants world-wide-

In the year 1984, Toyota opened its New United Motor Manufacturing in the United States.      
This plant employed the TPS (Toyota Production System).
This system is based on the doctrine of mutual respect and trust between the employees and the management. TPS focuses on empowering the team members.
But this plant was later closed in the year 2010.
Toyota started opening its plants world-wide.
In the 1980s, they opened Kuozui Motors plant in Taiwan and Toyota Motor Manufacturing Kentucky and Toyota Motor Manufacturing Canada.
Now, Toyota has manufacturing plants in 28 countries.

Luxurious Lexus-

Toyota also produces Lexus line-up of vehicles like Lexus RX.      
Lexus is a sub brand of Toyota which produces luxury cars.
The first Lexus model, Lexus LS 400 was launched in the year 1989.
It took six years of research and development, 450 prototypes and four and half million kilometres of testing to make Lexus LS 400 model.

The first hybrid vehicle to be mass-produced-

In the year 1993, Toyota launched the G21 project, which is now known as Toyota Prius.
These are environmentally friendly vehicles.
Toyota Prius was the first hybrid vehicle to be mass-produced and till now, Toyota has sold over 10 million hybrids all over the world.
In the year 2012, Toyota Prius Plug-in Hybrid (Prius PHV) vehicle was launched.
This vehicle mates the hybrid technology with the positives of the electric vehicles.
This is the bestselling hybrid of all time.         

Bringing in the heart-pumping excitement-

In the year 2009, the grandson of Kiichiro Toyoda, Akio Toyoda became the president of the Toyota Motor Corporation.
Akio Toyoda spurred new innovation into the company and as he was a motorsports fan himself, he instilled the spirit of Waku-Doki (meaning heart-pumping excitement) into Toyota.
Thanks to this spirit, the design and performance of all Toyota vehicles received a major upgrade.

Miraculous Mirai-

In the year 2015, Toyota introduced the world’s first hydrogen fuel cell vehicle, Toyota Mirai.
Now, Toyota holds over 5000 patents in the area of fuel cells.
It took Toyota more than 20 years to develop these patents.
Toyota has made these patents available for royalty-free to other automobile manufacturers, energy providers and researchers.                  
This proves the dedication of Toyota to the development of clean and emission free vehicles.
Toyota holds thousands of patents in the automobile industry.

TNGA-

In the year 2015, Toyota introduced its TNGA (Toyota New Global Architecture).
Its main focus is to build better vehicles on the common platforms utilising the common parts.
The TNGA improved the efficiency of the manufacturing plants and made them reactive to the changes in the auto markets.

A sensible technology-

In the year 2016, Toyota inaugurated its Toyota Safety Sense (TSS) to enhance the safety of all its customers.
This technology was made available in majority of the Toyota vehicles irrespective of their price points.
Toyota Safety Sense technology brought many novel safety features in the vehicles.
The Toyota’s innovations make our lives easier and more efficient.

The indestructible vehicles-

Once, the Top Gear crew determined to destroy a Toyota Hilux.
But they failed even after making several destruction attempts, which included running the vehicle into a tree, drowning it into water, dropping a caravan on it, striking it with a wrecking ball, burning it and taking it to the top of a building which was going to be demolished.
The Toyota Hilux was recovered from the debris but to everyone’s surprise, its engine still started even after enduring so much torture.
This proves that the Toyota vehicles are well built.
This is the best testimonial of the quality of the Toyota vehicles.

Renowned reliability-

According to a statistics from the manufacturer, nearly eighty per cent of the Toyota cars sold in the last twenty years are still running on the road.

Other interesting things about Toyota-

  • Now, there are more than hundred different models of Toyota cars available globally.                
  • By market capitalisation, Toyota Motor Corporation is the biggest company in Japan.
  • Toyota also owns Lexus, Daihatsu, Hino, Kyohokai group, Red Entertainment and they also hold stakes in Subaru, Isuzu and Mitsubishi Aircraft Corporation. And until the year 2016, they also had stakes in Tesla.
  • The Kyohokai group has more than 200 companies under it.
  • Toyota is the world’s largest manufacturer of forklifts.    
  • They also make humanoid robots and this company also provides banking and leasing services.
  • Toyota extensively uses robots in their manufacturing plants since 1970s and eventually they have developed robots to help humans.
  • The Toyota robots can provide nursing support and can assist physically challenged persons.
  • Toyota also participates in various philanthropic activities, environmental conservation, disaster relief, education, safety, etc.
  • Now, the net worth of Toyota is approximately $236 billion US dollars and it employs around 340,000 people worldwide.

Its roots still exits-

Even today, Toyota still runs Toyota loom works under Toyota Industries Corporation.
The Toyota dream was passed on to many generations in the Toyoda family and now the dream is being worked upon by its 340,000 employees.
An interesting thing to be noted is that the values and work ethics which helped Toyota in its initial stages are still present.

Thank you very much for reading. Please visit my blog and share the content, follow this blog as I will be updating my blog on a very regular basis with interesting information. And also, subscribe to my blog.
Feedback from readers is highly appreciated; it helps me to deliver better results to you.

Once again thank you for your time

Comments

Popular posts from this blog

The Splendid Spiritual Saga of Sadhguru

Welcome to Youth Motivator. I would like to tell you the interesting story of Jaggi Vasudev and how Jaggi Vasudev became Sadhguru. This article will help you to cultivate a feeling of spirituality and provide you with spiritual motivation. Sadhguru is an Indian mystic, yogi, philanthropist and author. Introduction -Jaggi Vasudev (Sadhguru) was born on 3 September 1957 in Mysore, Karnataka, India. Until the age of 19 years, Sadhguru did not spoke much and was very silent. Sadhguru did not spoke much because he realised that he didn’t know about anything. He realised this when he was 4 years old. Paying the complete attention -Sadhguru spent most part of his childhood paying attention to whatever he encountered. If he saw a glass of water, he used to stare at it for hours and during night he used to gaze at the darkness for the whole night. And when Sadhguru opened a book to read, he would immerse himself in focussing on a small tiny dot on a page for several hours and he would fail to read ev…

The Success Story of Ola Cabs-The Startup which Became One of the Fastest Achievers of the Unicorn Status

Welcome to Youth Motivator. I would like to tell you the success story of Ola Cabs. Unicorn status means achieving one billion dollar valuation by a privately held startup. Ola Cabs is one of the fastest achievers of the unicorn status in India. Ola Cabs is also the India’s first taxi aggregator company. This is the interesting case study of Ola Cabs. Introduction-Ola Cabs was co-founded by Bhavish Aggarwal and Ankit Bhati, the alumni of IIT (Indian Institute of Technology) Bombay. Bhavish Aggarwal completed computer science and engineering in 2008 from the prestigious IIT. He started his career in the Microsoft Research centre. Bhavish Aggarwal studied in an IIT, where the spirit of entrepreneurship is induced by regular seminars on topics like entrepreneurship and business. By listening to these speeches, Bhavish Aggarwal decided in his college days that, one day he will definitely become an entrepreneur and stand on his own feet. The sooner, the better-He strongly felt that if he didn’t tak…

The Success Story of PUBG- The World's Most Popular Battle Royale Game

Welcome to Youth Motivator. I would like to tell you the success story of PUBG. PUBG is also known as PlayerUnknown's Battlegrounds. Let us know how a passionate photographer is the reason for the popularity of PUBG. This game has become so popular, so much that you can observe many people playing PUBG on their mobile phones, personal computers, laptops and gaming consoles. The current generation of young people daily spend at least some amount of their time for playing this game. Even some people have become addicted to this game. Let us also know how PUBG was very effectively marketed on a low budget, which is the main reason for the success of the PUBG game. Let us learn how the company which created this game is earning billions of dollars through this game. Introduction-Brendan Greene, an Irish national is the creator of the PUBG game. Brendan Greene graduated in fine arts and later went on to become a web designer. He also learned professional photography. As he was himself an avid v…

Becoming the World's Most Valuable Start-up- The Story of ByteDance (The Owner of TikTok)

Welcome to Youth Motivator. I would like to tell you the success story of a very popular and controversial application, TikTok. Let us know how the company which offers TikTok has been valuated at a whopping 75 billion dollars. TikTok is a very popular social video app; more than 500 million youngsters use this app for creating and sharing short-duration videos. TikTok has been one of the most downloaded apps on the Google Play and App Store. By reading this post you will get to know very interesting facts and will gain insights on how this app grew so rapidly worldwide. The start-TikTok was initially started as an educational project. In the year 2014, two friends namely, Alex Zhu and Luyu Yang decided to develop an educational app. These two friends observed that at those times the educational videos were too lengthy. So, an idea sparked in their minds that they will produce short educational videos which would range in between 3 to 5 minutes. Alex Zhu and Luyu Yang thought that this short …

The Success Story of Elon Musk- The Most Revolutionary Risk-taking Entrepreneur Ever

Hello, welcome to Youth Motivator. Today, I would like to share with you the very inspirational story of Elon Musk. The biggest risk in our lives- Do you know who are under severe risk? The people who don’t take any risk in their lives and don’t leave their comfort zones. All the great people took risks in some part of their lives to attain great success. Introduction- Now, I am going to tell you about a famous personality who is a life-long risk taker. Yes, he is Elon Musk, the legend who is changing the world and one of the few peoples on earth who has potential to change the world. Elon Reeve Musk was born on June 28, 1971 in Pretoria, Transvaal, South Africa. His parents got divorced when he was just 10 years. He used to live with his father after their divorce. Since his childhood, Elon Musk used to show great interest in science and computers. Creative since childhood- He learnt computer programming and coding on his own, when Elon Musk was a kid. He created a game by name Blastar…

The Very Motivational Story of Cristiano Ronaldo

Welcome to Youth Motivator. I would like to tell you about the world’s favourite footballer Cristiano Ronaldo. Introduction-Cristiano Ronaldo dos Santos Aveiro was born on 5 February 1985 in Funchal, Madeira, Portugal in a very poor family. Because of the poverty, they used to daily face struggles. His father,José used to work as a gardener and as a kit man in a football club, on a very low pay. His job as a kit man was to supply kits to the football players and clean their rooms. José was very sad because he had not achieved anything meaningful in his life and he cannot properly feed his children because of poverty, so he became an alcoholic. Even though he was an alcoholic, he took good care of Ronaldo. The football game was introduced to Ronaldo by his father. Since, his childhood Cristiano Ronaldo did not show much interest in education but had a great passion for football. And he used to play football really well. Making his own football-But due to poverty, Ronaldo’s father José could no…

The Inspiring Story of Xiaomi (Mi)- A Very Successful Start-up

Welcome to Youth Motivator. I would like to tell you the success story of Xiaomi. This start-up company became the world’s fourth largest smartphone manufacturer within just eight years of entering the smartphone market. Xiaomi is a Chinese tech giant, headquartered in Haidian District,Beijing, China. Introduction-About the founder-Lei Jun was born on 16 December 1969 in Xiantao, China. He attended Wuhan University. In in the year 1992, he started his career as an engineer in Kingsoft. Lei Jun was so capable, that in the year 1998 he became the CEO of Kingsoft. So, it took him just six years to become the CEO. And in the year 2000, Lei Jun founded Joyo.com, an online book store. This initiative by Lei Jun was very successful and in the year 2004, he sold Joyo.com to Amazon.com for 75 million US dollars. After tasting this success, Lei Jun decided to do something bigger. The story of Xiaomi-On 6th April 2010, Lei Jun along with a team of 7 members founded Xiaomi Company with an initial investment…

The Inspiring Story of OYO- On the Path of Becoming the World’s Largest Hotel Chain

Hello, welcome to Youth Motivator, here I would like to tell you the success story of Ritesh Agarwal and his start-up OYO. Introduction Ritesh Agarwal is the founder and CEO of OYO. He is of 25 years. He was born in Bishama Katek, Orissa, India in the year 1993. Now OYO has around 450,000 rooms, in several countries like India, China, United Kingdom, Japan, UAE, etc. OYO is already the Asia’s largest hotel chain with around 90 per cent occupancy rate. Today, the net worth of Ritesh is 37,36,72,000 USD. How all of this started? From his childhood Ritesh wanted to become an entrepreneur. He got to know about the term entrepreneur from his elder sister, who once attended the entrepreneurship fest in an engineering college. He did not know the meaning of entrepreneur, so he looked for this word in Oxford Dictionary and found that an entrepreneur is somebody who solves a problem and makes a business along with it. Ritesh was so captured of becoming an entrepreneur that he told everyone tha…

The Inspiring Story of Dhirubhai Ambani – A Must Read for Every Entrepreneur

Welcome to Youth Motivator. I would like to tell you the success story of Dhirubhai Ambani which proves that where there is a will, there is a way. This is a must read for everyone, as this story is filled with motivation. Ambani became one of the greatest businessmen who redefined the meaning of the business despite lacking financial support, family background and education from the prestigious business schools. He achieved great heights with his indomitable will-power and dedication. Ambani is the founder of the Reliance Industries Limited, one of the world’s largestmultinational conglomerate companies. Now, the total assets of the Reliance Industries Limited are more than US$140 billion. Before starting Reliance Industries Limited, Ambani did several jobs. Introduction-Dhirajlal Hirachand Ambani (Dhirubhai Ambani) was born on 28 December 1932 to Hirachand Gordhanbhai Ambani and Jamnaben Ambani in Chorwad, Junagadh district, Gujarat in a poor family. His father, Hirachand Gordhanbhai Ambani…

The most Inspiring story of a 28 year old Blind CEO- The True story behind the Bollant Industries

Hello everyone, welcome to Youth Motivator.Today, I am going to tell you about a blind person who has achieved great success with his confidence and persistence. Even when society treated him cruelly, he gave back his valuable contributions to the society and helped to motivate the physically handicapped people all around the world. 
Even though he was hated by the society his parents always supported his endeavours and stood by his back.Srikanth Bolla was born blind; from his childhood he was widely discriminated in the society. 
He at a very young age established a company worth many billions, which even normal people find very difficult to do. Most of the people only think of doing great things but they lack the courage to realise their dreams, here you will know how a person with disability and constant humiliation by society achieved great feats at such a young age.
 He later on went to establish a company which not only proved his worth but he also employed numerous disabled people…