By Tadashi Isozumi / Yomiuri Shimbun Senior Writer
Toyota Motor Corp. views China as "not a competitor" but "a place to jointly develop products that meet the needs of the Chinese market," said Executive Vice President and Chief Technology Officer Hiroki Nakajima.
Nakajima also responded to a question about the company's new management team when he spoke to reporters at Fuji Speedway in Oyama, Shizuoka Prefecture, last Saturday.
The following is the second of two parts excerpted from remarks made by Nakajima.
Succession 'still in baton-passing zone'
Question: It's said that Toyota Racing (which competes in the World Endurance Championship and other series) faces the challenge of competing without Morizo (name used by Toyota Chairman Akio Toyoda when he's racing). Doesn't this also apply to the company's management?
Hiroki Nakajima: (The Toyota presidency) was passed (from Koji Sato) to (Kenta) Kon this year. Kon himself has stated that he wants to "increase the number of people who can build better cars while maintaining the tradition of building better cars." We will invest heavily and step on the accelerator when we need to be aggressive. We will stop doing unnecessary things. We will use the brakes effectively to accelerate. This is what Toyoda passed on to Kon.
Toyota is a company with a long history. Going back to our roots, why do we exist? It will take time for all employees to fully grasp this. In that sense, we are still in the transitional phase of passing the baton. Since (Toyoda) became chairman (in 2023), we've adopted a system where decisions are made by (the president and lower ranked executives). But we still have a relationship where we can debate or consult (with Toyoda) regarding issues on which clear directions have yet to be decided, such as how we should envision the future of autonomous driving. Hydrogen is another clear example. This is not something we can monetarize overnight, but we need to decide whether the company should pursue it with an intention. By continuing (communications with Toyoda) and still taking toddler-like steps, we need to gradually become more independent.
I don't know how long it will take (for the succession). (Toyoda) was out driving (on the circuit) today and is full of energy. We can't afford to be weak either. We must stay energetic and keep up with him. If, by seeing that example, the younger generation can naturally take over little by little -- especially if Toyota's way of thinking and universal values take root -- then I believe we'll be able to respond firmly no matter what changes occur in the business environment.
Advancing joint development in China
Question: How do you assess the development capabilities and cost competitiveness of Chinese manufacturers?
Nakajima: Chinese cars have evolved significantly. In terms of automotive culture, there has been a shift from an era of driving Western-style cars to one where highly original vehicles (developed in China) are increasingly emerging. (Toyota) has made a major policy shift in the vast Chinese market: we're now having Chinese people create products that delight Chinese people. As for our forthcoming vehicles, we have many of our own members involved, and we're working together with our partners in China, working hard to create cars that embody the Toyota spirit through joint development. Those products will be released in the near future.
We don't view China as a competitor; rather, we see it as a place to jointly develop products that meet the needs of the Chinese market. If good technology emerges there, it naturally has the potential to be rolled out globally. Toyota has been operated based on the principle of "local production for local consumption" -- making products locally. We already have bases in the United States, Europe and Asia, and we have been vigorously strengthening our bases in China as well. One of our goals is for people to look at our Chinese products and think, "That's only Toyota."
Surely, we will engage in friendly competition with Chinese, European, American and Japanese automakers. Customers would choose the car maker who can provide a better product in a timely manner. Ultimately, it is the customer who decides which (car to purchase). For our part, we believe it is essential that we never cease our efforts.
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This article is from The Yomiuri Shimbun. Neither Dow Jones Newswires, MarketWatch, Barron's nor The Wall Street Journal were involved in the creation of this content.
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June 12, 2026 07:37 ET (11:37 GMT)
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