Presentation1 2

The Hybrid World
About Toyota
• World’s 2nd largest motor vehicle

manufacturer
– 320,802 employees
– Sales in 140 countries
– Manufacturing operations in 27
countries (including Canada)
– 9.5 million units Sold last year
Challenges, on a grand scale
The Call to Action
“There is no future for the automotive industry without the
promotion of environmental technology. Toyota is convinced that
only companies that succeed in this area will be acceptable to
society.”
Fujio Cho
Chairman, Toyota Motor Corporation
Introduction
 Toyota launch its hybrid car “Prius” in 1997.
 Prius created a lot of enthusiasm in the industry.
 Have sold 100,000 units worldwide by 2002.
 “Prius” was introduced into US market.
 Auto engineering and Environmental magazines-”world’s
best engineering car.”
Toyota as a company
A diversified business into the textile machinery from
carpentry.
 The Toyoda Group was founded in 1902.
 In 1926, Sakichi invented an automatic loom and TALW
was formed.
 In 1933, Sakichi established an automobile dept within
TALW.
 Patents rights were sold to set up a new automobile
business.
 Kiichiro was made MD of the new company called
TOYOTA.
 Kiichiro studied the manufacturing processes at Ford.
 Just-in-time (JIT) system was developed within
Toyota.
 The passenger car production began in 1947.
 In 1950, Toyota faced major competition and some
labor problems.
 Now Eiji Toyoda was the new MD for Toyota.
 Eiji and Taiichi set up a system which became the base
for TPS.
 In 1957, Eiji renamed Toyota to The Toyota Company.
 Toyota’s first export to US was the Toyota Crown.
 In 1983, the company’s name changed to Toyota Motor
Corporation.
 By the early 2000, Toyota had become one of the top
manufactures of cars in the world.
HYBRID CARS
 Hybrid vehicle is a vehicle that uses two or more

distinct power sources to move the vehicle.
 Commonly refers as HYBRID ELECTRIC
VEHICLES (HEVs).
 Combine an internal combustion engine and one or
more electric motors.
EVOLUTION OF HYBRID CARS
 FERDINAND PORSCHE manufactured first hybrid

car in 1898.
 In 1970 US govt started a program called Federal
Clean Car Incentive(FCCI).
 In 1993 a new program was launch named
partnership for new generation of vehicles which
was replaced by freedom CAR in 2001.
 Toyota displayed its first ever hybrid vehicle named
sport 800 in 1977.
TOYOTA’S PRIUS
 Toyota displayed its first ever hybrid vehicle named
sport 800 in 1977.
 In 1992 Toyota announced a document called “
EARTH CHARTER”
 Their aim was to introduce innovative vehicles using
new technologies & alternative sources of power.
 This initiative gained momentum with the formation
of G21 committee which paved the way for Prius &
other hybrid models.
 Prius was a refined version of model vehicle ,
which was approved in June 1995 & was
introduced as Prius in October.
 It was called as a full hybrid power train.
ORIGINAL PRIUS
 The original Prius( Prius NHW10) was launched in japan
in December 1997.
 It was stylish & safe with 4 door & 5 passenger sedan.
 It was comfortable to drive and its fuel efficiency was
double than that of conventional cars.
 Its major advantage was that it reduced the emissions
 It was well received by Japanese customers & in the first
year the sales were 18000 units app.
 It won Japan’s car of the year award for 1997-98.
FIRST GENERATION TOYOTA
PRIUS
• Specifically made for US, Europe and renamed as Prius
Classic
• Minor changes were incorporated like engine

specifications, battery pack and LCD screen
• Compiled with Super Ultra Low Emission

Standard(SULEV)
Marketing strategy
 Convincing customers was a challenge in U.S.
 Market Research carried out and Internet was used for
Promotion
 Price was another vital factor
 USP-”Clean environment with High Technology”
 Sold 1800 cars through Online booking before Prius came to
dealers.
 Fans included stars like Leonardo Di Caprio, Cameron Diaz,
Will Farel, Bill Maher and Alaxandra Paul
Marketing Strategy(Contd.)
 Sold15,556 cars in first year and within 3 years
there were 1,00,000 Prius on the roads.
SECOND GENERATION
TOYOTA PRIUS
 Toyota improved the previous version in terms of
looks, quality and performance
 Launched in April 2003 in U.S.
 Powered by THS-2 engine
 Added features were S-VSC(Steering Assisted
Vehicle Stability Control Systems) and Intelligent
parking Assisted System
 Compiled with AT-PZEV(Advanced Technology-
Partial Zero Emission System) standards
Safety Features
 Complied with International safety standards
ISOFIX system which included 8 airbags,2 stage
seatbelt warning system and intelligent child seat
design
 Put through 125 crash tests
 Tested by EuroNCAP and it featured a top
performer in Luxury car segment
Knowledge Mgmt. at Toyota
The Toyota Way
• Challenge
• Kaizen (continuous improvement)

• Go and See
• Respect
• Teamwork
Toyota Production System

A combination of explicit, implicit and tacit knowledge
Ethos at Toyota
Quality at Source
Responsibility of every employee, work group, department, or
supplier to inspect the work.
Quality Circles
Employees proposed measures to solve identified problems and
discuss the results of the decision taken.
This leads to the process getting refined on a continuous basis and
leading to fewer errors.
Ethos…
JIT system
Strategy of retailers who maintain almost no excess on-hand
inventory, relying upon suppliers to deliver inventory as needed.
• Love for Detail and Perfection

• Lifelong Employment
• Teamwork and Trust
• Nemawashi (Decision by consensus)
Results
• Toyota Prius : Fastest Development process in the world.
• Production process reached in 15 months.
• 80 Hybrid engines tested
• Implementation of Single Minute Exchange of Die (SMED),

Automation and Global Body Line
MARKETING STRATEGIES OF
TOYOTA PRIUS IN THE US
 Internet --- 1. Tax Sites
2. Portal Homepages
3. Toyota.com
 Print Media --- 1. Weeklies and Monthlies

2. Newspapers
 Television --- 1. Network TV

2. Cable TV
3. Spot TV
 Radio --- 1. National Radio
2. 60 Spot Market
 Celebrity Endorsements --- 1. Oscars

2. Celebrity Owners
 Govt Agencies and NGOs --- 1. Govt. Organizations

2. NGOs
3.Trade Associations
FUTURE OUTLOOK
 New Prius --- Sales Volume --- 36000 units
 Very efficient and includes many new features over the 1st
generation Prius.
 By October 2, 2003 17500 Prius had been ordered in Japan.
 By September 2004 100000 Prius had been sold in the US
alone.
 By September 2005 about 367000 Prius cars were sold
worldwide.
 44% were sold in Japan and the rest in North America.
 The company have been developing newer versions of the
car every year.
 Cost of 2005 Prius was $21,275.
 It had state of the art technology.
 Toyota had about 300 patents for the original Prius and
370 for the new Prius.
 Toyota has agreed to share it’s hybrid technology with
Nissan Motor Co.
 Prius has captured may awards in the industry.
 Hybrid vehicles significant contributor to it’s profits.
 Won’t sacrifice profits for the sake of growth or vice
versa.
 For this the following guidelines are devised –
1. Global Sales
2. Global Production
3. Global core models
4. Global luxury Brand
5. Cost cutting
6. Hybrids
Thank you
 RAVI HIWALE (1848)
 SONIA SHARMA
 PRATEEK DEBNATH (1640)
 RATUL MUKHERJEE (1845)
 TATHAGATA ROY (2574)

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The Hybrid World

• World’s 2nd largest motor vehicle

 Hybrid vehicle is a vehicle that uses two or more

 FERDINAND PORSCHE manufactured first hybrid

• Minor changes were incorporated like engine

• Compiled with Super Ultra Low Emission

• Kaizen (continuous improvement)

Toyota Production System

• Love for Detail and Perfection

• Production process reached in 15 months.

• 80 Hybrid engines tested

• Implementation of Single Minute Exchange of Die (SMED),

 Print Media --- 1. Weeklies and Monthlies

 Television --- 1. Network TV

 Celebrity Endorsements --- 1. Oscars

 Govt Agencies and NGOs --- 1. Govt. Organizations

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