Toyota aims for 26 trillion won in operating profit by 2030 from businesses other than new car sales

Targeting operating profit of 26 trillion won in 2030 through businesses other than new car sales

(Tokyo = Yonhap News) Correspondent Lee Do-yeon = Japan's Toyota Motor Company plans to increase its operating profit to 3 trillion yen (about 26 trillion won) by 2030 through businesses other than new car sales, such as software updates and leasing, the Nippon Keizai Shimbun (Nikkei) reported on the 7th.

As software-driven vehicles (SDVs) are expected to expand in the future, Toyota plans to focus on 'value chain business' after new car sales, such as systems that support safe driving using wireless communication, software function updates, and sales of repair parts.

SDV is a vehicle whose functions can be improved through software updates, like a smartphone.

They believe that we will live in an era where post-delivery services, such as safe driving or adding interior entertainment features, will determine the growth of automobile manufacturers, and they will move away from the one-time sales model in which performance is determined by the number of new cars sold.

We also plan to focus our efforts on selling used cars. We have already started a service that allows you to install safety features such as obstacle detection when purchasing a used car.

The number of used cars sold annually in Japan is planned to increase from the current level of 350,000 to 550,000 in the 2030s.

In terms of this value chain business, Toyota's operating profit already amounts to 2 trillion yen (approximately 17.4 trillion won).

Toyota's goal is to increase sales in this field by approximately 150 billion yen (approximately 1.3 trillion won) annually and expand operating profit to 3 trillion yen by 2030, an increase of approximately 40% from the current level.