By Shuntaro Murase
Yomiuri Shimbun Staff Writer
Toyota Tsusho Corp., a general trading company in the Toyota Motor Corp. group, has seen its stock price roughly double over the past year, hitting an all-time high since its listing. Behind the strong performance lies a management strategy that values emerging markets, where more economic growth is expected.
President and CEO Toshimitsu Imai said key markets will include Africa, where the company runs Toyota dealerships, as well as India and South America, during an interview with The Yomiuri Shimbun and other media outlets.
The following is excerpted from the interview.
Tailwind for trading sector
Question: What do you think was behind the rise in your stock price?
Toshimitsu Imai: First, Japanese stocks and trading company stocks have been on the rise. Some people say prices rose because U.S. investor Warren Buffett bought shares in Japanese trading companies. Why did he buy them? He likely saw an opportunity in the trading company business model during this era of great transformation. We feel the same way. Within our industry, there are plenty of people who say the world is tough but are smiling because they see business opportunities everywhere.
Furthermore, I believe Toyota Tsusho's unique approach is being recognized. We don't try to do everything from ramen to missiles; instead, we stay away from what we're not good at. We specialize in our areas of strength. Our strengths lie in emerging markets and resource recycling. The market likely views the growth potential of our specialized areas as high.
Reviving Gondwana
Question: Could you tell us about your "Gondwana Economic Zone" plans, which identifies Africa, India and South America as growth markets?
Imai: When I visited a grain export hub in Brazil, it reminded me of Africa, where I lived for a long time. A person who accompanied me said they were once part of the same continent called Gondwana. So I looked into it myself and found that Africa, India and South America are fragments of that ancient continent that separated due to tectonic shifts. Then, I came up with this somewhat grandiose idea of reviving the long-vanished Gondwana continent as an economic zone.
Question: What are your future strategies?
Imai: By the first half of the 2030s, sales revenue in Africa, India and South America is projected to reach 4.5 trillion yen. In Africa, this surpassed 1 trillion yen just a few years ago, but it is expected to exceed 2 trillion yen in the fiscal year ending March 2027. By the first half of the 2030s, we aim to achieve 3 trillion yen. Our target for India is 600 billion yen by 2030, and for South America it's 850 billion yen by 2030.
Looming demand surge in Africa
Question: What is the state of your automotive business in Africa?
Imai: Populous countries like Kenya and Ethiopia are entering a phase of rapid economic growth, and car sales are expected to increase. There will likely come a point where sales surge dramatically as cars become more widespread. Currently, the new car market in Africa stands at 1.5 million units annually, but it could reach 3 million by 2030.
More exports of Chinese cars will inevitably reach Africa. Car sales in Africa will be fought over by Chinese companies and us (the Toyota group and its partner Suzuki Motor Corp.). To ensure we don't lose this fight, we intend not only to sell cars tailored to Africa but to also establish a service network to keep those cars running.
African customers need standard vehicles. Cars equipped with entertainment or autonomous driving features -- the kind currently popular in China -- won't sell if they are brought in as they are. Suzuki's vehicles, which are durable and lack unnecessary frills, are highly regarded, and they will remain competitive at least until 2030.
Japanese auto firms target India
Question: What is the business environment like in India?
Imai: Toyota Motor has announced that it plans to build a new plant (in India). Suzuki is working to increase its market share in India once again. Japanese auto parts manufacturers are also making additional investments, so I think a Japanese auto industry cluster will form there, similar to what we see in Southeast Asia. Toyota Tsusho has increased its number of expatriate staff from 50 to 100.
India is a country of democracy and capitalism, and an English-speaking country, and its people are hardworking. It has all the conditions for economic growth lined up. The potential clearly outweighs the difficulties of doing business. There are plenty of opportunities, so we want to invest people, goods and capital there, just as we have in Africa.
Lessons from Mideast crisis
Question: What impact are tensions in the Middle East having?
Imai: It seems Japanese industry is weathering the storm, as based on past experience, it had prepared by strengthening supply chains and making them more flexible. I think this crisis is a wake-up call when it comes to our dependence on the Middle East. I think it has become clear we need to restructure supply chains and also promote resource recycling and the use of renewable energy in the medium to long term.
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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 10, 2026 21:11 ET (01:11 GMT)
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