Toyota Timeline

Toyota 45

1918 Toyoda Automatic Loom Works founded Sakichi Toyoda founds Toyoda Automatic Loom Works in 1918 in Nagoya, Japan — building on his invention of the Type-G automatic loom, which could stop itself automatically when a thread broke, preventing defective cloth. The self-stopping loom embodies a principle — 'jidoka' (automation with a human touch) — that will become one of the two pillars of the Toyota Production System. Sakichi sells the patent rights to his loom to Platt Brothers of England in 1929 for £100,000 — the capital that funds his son Kiichiro's automobile venture.
1929 Loom patent sold — automobile dream funded Sakichi Toyoda sells the patent rights to his automatic loom to Platt Brothers of England for £100,000 in 1929 — a fortune in Depression-era Japan. He gives the money to his son Kiichiro with instructions to use it to develop an automobile. Sakichi reportedly tells Kiichiro: 'Everyone should tackle some great project at least once in their life. I devoted most of my life to inventing new kinds of looms. Now it is your turn. You should make an effort to complete something that will benefit society.' The automobile venture is that project.
1933 Toyoda Automobile Department established Kiichiro Toyoda establishes an automobile department within Toyoda Automatic Loom Works in 1933, beginning serious work on developing a Japanese-made automobile engine. Kiichiro travels to the United States and Europe to study automobile manufacturing, particularly Ford's River Rouge complex. He returns convinced that Japan can build its own automobile industry. The first Toyota engine — the Type A — runs for the first time in 1934, producing 65 horsepower.
1935 First Toyota prototype — the Model A1 Toyota produces its first prototype automobile — the Model A1 passenger car — in May 1935, followed by the G1 truck. The Model A1 closely resembles the Chevrolet of the same era — Japanese engineers were not yet above copying American designs. But the fact that the car runs and drives is itself an achievement. Toyota's truck, the G1, begins limited production the same year, targeting Japan's military and commercial market. The Japanese government actively encourages domestic automobile production as part of its military expansion plans.
1937 Toyota Motor Company established Toyota Motor Company is established as an independent company on 28 August 1937, separated from Toyoda Automatic Loom Works. The name is changed from 'Toyoda' to 'Toyota' — in Japanese, 'Toyota' takes eight strokes to write (a lucky number) versus ten for 'Toyoda,' and the new name sounds cleaner and more suitable for an international brand. The company builds its first dedicated automobile factory in Koromo (later renamed Toyota City) the same year. Production begins at 150 vehicles per month.
1938 Koromo plant — first dedicated Toyota factory Toyota opens its first purpose-built automobile factory in Koromo, Aichi Prefecture in 1938. The Koromo plant is designed with mass production in mind, drawing on lessons Kiichiro learned at Ford's River Rouge. The town of Koromo is eventually renamed Toyota City in 1959 — one of the few cases of a Japanese city renaming itself after a company. The Koromo/Toyota City complex becomes the heart of Toyota's manufacturing operations, eventually employing hundreds of thousands of people directly and indirectly.
1941 – 1945 World War II — trucks for the military During World War II, Toyota's production shifts almost entirely to trucks for the Japanese military. Consumer car production effectively stops. The war years are difficult but the forced focus on truck manufacturing develops Toyota's capabilities in vehicle engineering and large-scale production. The Allied firebombing of Japanese cities in 1945 severely damages Toyota's Koromo plant. When the war ends in August 1945, Toyota must rebuild both its factory and its civilian business from near-zero.
1945 Postwar reconstruction — Toyota nearly collapses Japan's defeat in World War II leaves Toyota in crisis: its factories are damaged, raw materials are scarce, and the American occupation authorities initially prohibit Japanese automobile production. Toyota survives by making pots, pans and other domestic goods. The company is near bankruptcy by 1949 — it cannot pay wages and must borrow heavily from banks. The Korean War (1950) saves Toyota: US military procurement of Toyota trucks generates the revenue that allows the company to survive and resume civilian production.
1950 Eiji Toyoda visits Ford — the TPS is born Eiji Toyoda, Toyota's new president, visits Ford's River Rouge plant in Michigan for three months in 1950 — studying the world's most efficient automobile factory. He returns to Japan convinced that Toyota can improve on Ford's mass production system. Working with production engineer Taiichi Ohno, Eiji begins developing what will become the Toyota Production System (TPS) — based on two principles: jidoka (stop and fix problems immediately) and just-in-time (produce only what is needed, when it is needed). TPS becomes the most influential manufacturing philosophy in history.
1950 Kiichiro Toyoda resigns — labour crisis A severe labour dispute in 1950 — Toyota cannot pay wages and management demands workers accept layoffs — ends with Kiichiro Toyoda resigning as company president to take personal responsibility for the company's difficulties. He is replaced by his cousin Eiji Toyoda, who will lead Toyota's subsequent global rise. Kiichiro dies in 1952, aged 57, having never seen Toyota achieve the international success he dreamed of. The labour crisis also produces an unexpected benefit: it forces Toyota to develop the just-in-time production system that eliminates waste.
1955 Toyota Crown — first passenger car for domestic market Toyota launches the Crown in January 1955 — its first passenger car designed specifically for the Japanese market rather than as a military vehicle or commercial truck. The Crown is comfortable, reliable and affordable for Japan's growing middle class. It establishes Toyota's domestic passenger car business and the quality reputation that will underpin its subsequent export success. Toyota sells 1,000 Crowns in its first year and steadily expands production capacity.
1957 Toyota enters the United States — disastrous first attempt Toyota exports its first cars to the United States in 1957 — the Toyopet Crown, a comfortable Japanese car entirely unsuited to American highways. The Toyopet's underpowered engine, poor highway stability and inability to maintain American cruising speeds make it a failure. Toyota sells just 288 cars in 1958 and withdraws from the American market to redesign. The failure is humbling but instructive: Toyota learns exactly what American consumers require and returns with a completely different product a decade later.
1959 Motomachi plant — mass production begins Toyota opens its Motomachi plant in Toyota City in 1959 — the first Japanese automobile factory designed from the ground up for mass production of passenger cars. Motomachi incorporates the developing Toyota Production System principles: pull-based production, just-in-time parts delivery and the andon cord system allowing any worker to stop the production line when a problem is detected. The andon system — revolutionary at the time — reflects the jidoka principle: it is better to stop and fix a problem than to pass a defect down the line.
1961 Toyota Publica — democratising car ownership in Japan Toyota launches the Publica in 1961 — an inexpensive, fuel-efficient small car aimed at ordinary Japanese workers who aspire to car ownership for the first time. The Publica, with its air-cooled twin-cylinder engine and minimal equipment, is Japan's answer to the VW Beetle. It sells well and establishes Toyota's expertise in small, efficient cars — expertise that will prove enormously valuable when oil crises make fuel economy the dominant consumer concern a decade later.
1966 Toyota Corolla — the best-selling car in history Toyota launches the Corolla on 5 November 1966 — a compact, reliable, affordable family car that goes on to become the best-selling car model in automotive history with over 50 million units sold across twelve generations. The Corolla's formula is simple: good quality, sensible features, reliable engineering and competitive pricing. It is never exciting but always competent. The Corolla's success funds Toyota's global expansion and establishes the company's reputation for reliability among ordinary consumers worldwide.
1968 Toyota returns to America — Corona succeeds Toyota re-enters the American market in 1965 with the Corona — a larger, more powerful car than the failed Toyopet, specifically designed for American driving conditions. The Corona is a modest success; by 1968 Toyota is selling over 70,000 cars per year in the United States. Toyota opens its first American sales company (Toyota Motor Sales USA) and begins building the dealer network and customer service reputation that will make it America's top-selling import brand. The American re-entry is the beginning of Toyota's global rise.
1973 Oil crisis — Toyotas fuel efficiency wins the world The 1973 Arab oil embargo causes oil prices to quadruple, triggering a global recession and forcing consumers to reconsider large, fuel-hungry American cars. Toyota's small, fuel-efficient Corolla and Corona — engineered with Japanese frugality — are perfectly positioned. American consumers flood Toyota dealerships. The oil crisis is Toyota's breakthrough moment in the United States: in 1975 Toyota overtakes Volkswagen to become America's best-selling import brand. The Big Three American manufacturers begin a decline that will take decades to partially reverse.
1975 Toyota becomes Americas best-selling import Toyota overtakes Volkswagen to become the best-selling imported car brand in the United States in 1975 — a position it holds for decades. Toyota's combination of fuel efficiency, reliability and competitive pricing makes it the obvious choice for American consumers adjusting to higher fuel costs. Japanese quality — Toyota quality in particular — begins to be seen as superior to American quality. J.D. Power customer satisfaction surveys consistently rank Toyota at or near the top from their introduction in 1968 onwards.
1977 Toyota Production System codified — TPS published Taiichi Ohno codifies the Toyota Production System in a landmark internal document in the late 1970s, later published as a book ('Toyota Production System: Beyond Large-Scale Production', 1978). TPS's two pillars — just-in-time and jidoka — and its associated tools (kanban cards, heijunka production levelling, kaizen continuous improvement) become the foundation of lean manufacturing worldwide. American academic James Womack popularises TPS globally through 'The Machine That Changed the World' (1990). TPS is arguably the most influential manufacturing innovation since Ford's assembly line.
1982 NUMMI — joint venture with General Motors Toyota and General Motors establish NUMMI (New United Motor Manufacturing Inc.) in Fremont, California in 1982 — a joint venture where Toyota manages production of a shared platform. NUMMI is transformative: Toyota teaches the Toyota Production System to American workers in the same factory where GM had previously experienced its worst labour relations and quality problems. Within two years, NUMMI is producing vehicles of Japanese quality with American workers. General Motors hopes to learn TPS; it partially succeeds but struggles to apply the lessons company-wide.
1984 Toyota Camry — Americas best-selling car Toyota launches the Camry in 1982 (Japan) and 1983 (US) — a mid-size sedan that becomes the best-selling car in the United States for most of the period from 1997 to the present. The Camry embodies Toyota's formula: thoroughly competent, reliably built, sensibly equipped and competitively priced. It is not exciting but it is exactly what millions of American families want. The Camry's dominance of the American mid-size sedan segment is one of the most sustained competitive achievements in automotive history.
1988 Georgetown, Kentucky plant — manufacturing in America Toyota opens its first wholly owned US manufacturing plant in Georgetown, Kentucky in 1988 — producing the Camry for the American market. The Kentucky plant quickly becomes one of the most productive automobile factories in North America, demonstrating that TPS can be implemented outside Japan with equal effectiveness. Georgetown employs 8,000 people and produces over 500,000 vehicles annually. Toyota's American manufacturing investment blunts political criticism of Japanese imports and builds genuine community ties.
1989 Lexus launched — competing with German luxury Toyota launches the Lexus brand in 1989 with the LS 400 — a luxury sedan targeting Mercedes-Benz and BMW at significantly lower prices. The LS 400 receives extraordinary reviews: its quietness, refinement and quality exceed the Mercedes S-Class at two-thirds of the price. Consumer Reports calls it the finest car ever tested. Lexus becomes the best-selling luxury import brand in the United States within two years. The Lexus launch demonstrates Toyota's ability to compete at the very top of the market, not just on value.
1993 Toyota becomes Japans most profitable company Toyota becomes Japan's most profitable company in the early 1990s — generating operating profits that dwarf its domestic competitors and most global manufacturers. Toyota's combination of TPS manufacturing efficiency, strong brand positioning and expanding global production gives it cost and quality advantages that compound over time. The 'Toyota Way' management philosophy — respect for people, continuous improvement — is adopted by companies worldwide as a model of operational excellence.
1994 RAV4 — Toyota invents the compact SUV Toyota launches the RAV4 in 1994 — the world's first compact SUV, combining car-like driving dynamics with SUV body style and optional four-wheel drive. The RAV4 creates an entirely new vehicle category that becomes the world's largest-selling vehicle segment thirty years later. Toyota's foresight in creating the compact SUV category gives it an enormous first-mover advantage. The RAV4 is Toyota's best-selling model globally in 2023, selling over 1.1 million units.
1997 Toyota overtakes Ford — second-largest automaker Toyota overtakes Ford Motor Company to become the world's second-largest automobile manufacturer in 1997 — behind only General Motors. The achievement, inconceivable when Toyota produced its first experimental car in 1935, reflects six decades of disciplined execution of Kiichiro's vision. Toyota's quality reputation, TPS efficiency and expanding global production network have made it the benchmark for the automotive industry worldwide.
1997 Toyota Prius — the hybrid revolution begins Toyota launches the Prius on 10 December 1997 in Japan — the world's first mass-produced hybrid electric vehicle. The Prius combines a 1.5-litre petrol engine with an electric motor and nickel-metal hydride battery, achieving fuel economy of 28km/l (66mpg) in city driving. It is technically extraordinary — Toyota's engineers solve enormous challenges in battery management, regenerative braking and power split device design. The Prius is initially sold only in Japan; its global launch in 2000 changes the automotive industry.
2000 Prius goes global — Hollywood embraces green driving The second-generation Prius launches globally in 2000 with a more practical hatchback body and improved performance. In the United States, the Prius becomes a cultural phenomenon among environmentally conscious consumers — particularly in California. Hollywood celebrities adopt it as a status symbol of environmental virtue. The waiting list for Prius reaches six months during the mid-2000s. By 2008, Toyota has sold 1 million Prius vehicles globally. The Prius makes hybrid technology mainstream and forces every other manufacturer to develop hybrid programmes.
2003 Toyota becomes worlds most valuable automaker Toyota's market capitalisation surpasses General Motors' to make it the world's most valuable automobile company in 2003. The achievement reflects Toyota's superior profitability, quality reputation and growth trajectory compared to GM's declining American market share and pension obligations. Toyota's stock is a favourite of institutional investors who see it as the best-managed large manufacturer in the world. The valuation gap between Toyota and GM widens every year through the decade.
2007 Toyota overtakes GM — worlds largest automaker Toyota overtakes General Motors in 2007 to become the world's largest automobile manufacturer by production volume — a position GM had held since 1931. Toyota produces 9.37 million vehicles; GM 9.35 million. The moment is symbolically enormous: the company that started making looms in 1918 has overtaken the company that defined the automobile age. GM files for bankruptcy two years later. Toyota's achievement is the culmination of sixty years of disciplined execution of the Toyota Way.
2009 Toyota surpasses 1 million Prius sales Toyota surpasses 1 million cumulative Prius sales globally in 2008, with sales accelerating as petrol prices reach $4 per gallon in the United States. The Prius is now the third-best-selling car in Japan. Toyota's hybrid technology — developed at enormous cost in the 1990s when no other manufacturer believed in it — gives Toyota a substantial competitive advantage: it has more hybrid model variety, lower hybrid system costs and better hybrid performance than any competitor. The hybrid technology lead takes a decade for others to close.
2010 Unintended acceleration crisis — 8 million vehicles recalled Toyota faces its worst public crisis in 2009–2010 when reports of unintended acceleration in Toyota and Lexus vehicles trigger a massive US government investigation. Toyota recalls over 8 million vehicles globally. Congressional hearings are televised; Toyota's CEO Akio Toyoda (grandson of founder Kiichiro) testifies in Washington and bows in public apology. The eventual investigation finds that driver error and floor mat interference — not Toyota's electronic throttle — cause most incidents. Toyota pays $1.2 billion in criminal penalties. The crisis damages Toyota's quality reputation but the company recovers.
2011 Tōhoku earthquake and tsunami — supply chain devastated The Tōhoku earthquake and tsunami of 11 March 2011 devastates Japan's northeast, killing nearly 20,000 people and triggering the Fukushima nuclear disaster. Toyota's supply chain is severely disrupted: dozens of suppliers are destroyed or damaged; Toyota halts production at all Japanese plants for weeks. Global Toyota production falls 37% in April 2011. The disaster exposes the vulnerability of Toyota's highly concentrated Japanese supply chain and accelerates Toyota's strategy of localising production closer to final markets.
2012 Akio Toyoda becomes CEO — the family returns Akio Toyoda, grandson of founder Kiichiro Toyoda, becomes Toyota's president in 2009 and consolidates his leadership through the recall crisis. Unlike his corporate-manager predecessors, Akio is a genuine car enthusiast and racing driver. He articulates a vision of making 'ever-better cars' rather than simply pursuing volume and efficiency. He pushes Toyota engineers to make cars that are more emotionally engaging and drives product development personally. The GT86 sports car (2012) — developed in partnership with Subaru — is the first expression of this philosophy.
2014 Toyota Mirai — hydrogen fuel cell vehicle Toyota launches the Mirai hydrogen fuel cell vehicle in December 2014 — the world's first mass-produced hydrogen fuel cell car available to consumers. The Mirai generates electricity from hydrogen fuel through a chemical reaction, emitting only water vapour. Toyota patents its hydrogen fuel cell technology widely and licenses it freely to competitors, betting that hydrogen will play a major role in decarbonising transport. The Mirai is expensive (approximately $57,000) and limited by hydrogen filling station infrastructure, but it demonstrates Toyota's belief in hydrogen as a long-term solution.
2015 Toyota sells 10 millionth hybrid vehicle Toyota sells its 10 millionth hybrid vehicle globally in January 2017 — crossing a milestone that would have been inconceivable when the first Prius rolled off the line in 1997. Toyota's hybrid lineup by this point includes the Prius, Prius v, Prius c, Camry Hybrid, Avalon Hybrid, RAV4 Hybrid and every Lexus model. Toyota's twenty-year investment in hybrid technology has generated $50 billion in hybrid vehicle revenues and established an intellectual property portfolio in hybrid powertrains that competitors are still working to match.
2017 Toyota criticised for slow EV transition As Tesla's electric vehicles gain global attention and governments announce internal combustion engine bans, Toyota is repeatedly criticised for being too slow to embrace battery electric vehicles. Toyota's official position — that hybrids and hydrogen are more practical paths to decarbonisation than pure battery EVs — is controversial. CEO Akio Toyoda publicly questions whether rapid EV adoption can be sustained given electricity grid limitations. The criticism intensifies through 2021–2022 as competitors announce all-electric strategies.
2018 Toyota-Panasonic battery partnership Toyota and Panasonic announce a joint venture to develop solid-state batteries — the next generation of battery technology that promises higher energy density, faster charging and better safety than current lithium-ion batteries. Solid-state batteries are widely considered the key to making electric vehicles genuinely competitive with internal combustion engines on range, cost and charging time. Toyota's solid-state battery programme, in partnership with Panasonic through their Prime Planet and Energy & Solutions (PPES) venture, is the most ambitious in the automotive industry.
2020 Toyota remains worlds largest automaker Toyota retains its position as the world's largest automobile manufacturer in 2020, selling 9.5 million vehicles despite the COVID-19 pandemic — while Volkswagen sells 9.3 million and GM 6.8 million. Toyota's financial strength allows it to weather the pandemic without the government assistance required by some competitors. Its diversified global production network and strong balance sheet — Toyota holds over $60 billion in cash — give it resilience that purely financially engineered competitors cannot match.
2021 Toyota announces $70 billion EV investment Toyota announces a $70 billion investment in electrification through 2030 in December 2021 — including $35 billion specifically for battery electric vehicles — reversing years of apparent reluctance to commit to BEV development. Toyota targets 30 battery electric vehicle models by 2030 and 3.5 million annual BEV sales. The announcement silences critics who had accused Toyota of opposing electrification. Toyota simultaneously reaffirms its belief in hydrogen fuel cells and plug-in hybrids as complementary technologies.
2022 bZ4X — Toyotas first mass-market battery electric vehicle Toyota launches the bZ4X — its first mass-market battery electric SUV — in May 2022. The launch is troubled: Toyota recalls all bZ4X vehicles in June 2022 when wheel hubs are found to loosen and potentially fall off. The recall damages Toyota's EV credibility at a critical moment. The bZ4X relaunches later in 2022 with fixes, but Toyota's EV programme continues to lag Chinese manufacturers (BYD, NIO) and Tesla in technology and sales volumes. Toyota's EV transition proves harder than its hybrid transition.
2023 Toyota sells record 11.2 million vehicles Toyota sells a record 11.2 million vehicles in 2023 — the most of any automaker for the fourth consecutive year. Despite the EV transition pressures, Toyota's hybrid vehicles are selling faster than ever: Prius, RAV4 Hybrid, Camry Hybrid and Lexus hybrids account for over 3.4 million sales. Toyota's multi-pathway strategy — hybrids, plug-in hybrids, hydrogen and battery EVs — proves resilient as EV demand growth slows in Western markets. Toyota's financial results are record-breaking: net income exceeds $30 billion.
2023 Koji Sato becomes CEO — EV acceleration Koji Sato succeeds Akio Toyoda as Toyota's president in April 2023, with Akio moving to chairman. Sato, a former Lexus chief who has led Toyota's GR sports car brand, signals a more aggressive EV commitment than his predecessor. He announces a next-generation EV platform with dramatically simplified manufacturing, targeting a 50% reduction in manufacturing costs versus current EVs. Sato also commits to solid-state battery production by 2027–2028 — a technology that would give Toyota EVs a significant range and charging time advantage.
2024 Toyota solid-state battery — 2027 production target Toyota announces a concrete target for solid-state battery production in 2024: initial small-scale production by 2027, with mass production vehicles by 2030. Solid-state batteries promise 1,200km range, 10-minute charging and improved safety. Toyota holds more solid-state battery patents than any other company. If Toyota can deliver solid-state batteries at commercial scale, it could transform the EV competitive landscape — giving Toyota-powered vehicles performance advantages over the lithium-ion battery EVs from Tesla, BYD and Chinese manufacturers that currently dominate the EV market.
2025 Toyota — 85 years from loom to the worlds largest automaker Toyota enters 2025 as the world's largest automobile manufacturer for the fifth consecutive year, producing approximately 11 million vehicles annually across 70 manufacturing facilities in 28 countries, employing 375,000 people directly. From Sakichi Toyoda's self-stopping loom in 1918 to Kiichiro's first prototype in 1935 to the Corolla, the Prius, the RAV4 and the coming solid-state battery EVs — Toyota's story is one of patient, disciplined engineering and manufacturing excellence pursued across generations of the founding family. The Toyota Production System it created has been adopted by hospitals, airlines, software companies and governments worldwide.