SWOT Analysis of Toyota – 2021 | Toyota SWOT

by Shamsul
SWOT Analysis of Toyota
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SWOT Analysis of Toyota – 2021 | Toyota SWOT


Toyota is a leading automobile company in the world. Toyota was instituted by Kiichiro Toyoda in 1937. It is a Japanese multinational company and famous for its innovative automobiles. SWOT analysis is a perfect business analyzing tool that you can use to identify the internal and external factors of a company. If you want to know the strengths, weaknesses, opportunities, and threats of Toyota, then you should read this article. It increases your business knowledge and improves critical thinking. Are you interested? If yes, then scroll down this page to read different aspects of Toyota.

Company name:  Toyota (Automotive Manufacturer)

Native Name: トヨタ自動車株式会社

Present Organization: Toyota Group

Established: August 28, 1937, Japan

Founder: Kiichiro Toyoda

Head office:   Toyota City, Japan

Key People:   Takeshi Uchiyamada (Chairman)

Shigeru Hayakawa (Vice chairman)

Akio Toyoda (President)

Area Served:  Worldwide

Industry:  Automotive

Products:    Automobile, Auto parts, Commercial vehicles, Luxury vehicles

Services: Vehicle financing, leasing, Banking

Production output: 10,398,182 (FY 2020) vehicles under various brands

Number of Employees (2020):  359,542

Revenue: (2020) – ¥2,442,869 million

Net Income: (2020)¥2,142,329 million

Subsidiaries: Lexus, Daihatsu, Subaru Corporation, MORE


SWOT Analysis of Toyota – 2021 | Toyota SWOT

Toyota’s Strengths:

  • The Toyota Way:

The main principle of Toyota is to add continuous improvement in its system. They know how to give respect to customers. These things improve its brand image and productivity. Their management is also very strong and due to this reason, they are doing really well for many decades. These are some core strengths of the company.

  • Fuel Cell Patents:

Many automobile companies are trying to reduce their environmental foot by investing in electric and vehicles and hydrogen fuel cells. The company owns more than 5680 patents internationally related to this kind of fuel such as hydrogen fuel cells. This is the major strength of the company and makes them strong in the zero-emission vehicles market.

  • Solid-State Battery:

Toyota’s research and development department are very strong and they are developing unique technology for electric vehicles after the successful development of fuel cells. They are going to uncover its solid-state battery this year. This battery pack increases the EV range and it changes from zero to a hundred percent in just 10 minutes.

  • Hybrids:

Toyota is known for its hybrid vehicles and some of the best green cars. If you are an eco-conscious person, then these cars are just right for you. They are reducing the footprint of fossil fuels by offering more hybrid options.

  • Concrete Stock Performance:

As we know that the pandemic has slowed down the profitability of automobile companies. But, the fact is that Toyota’s stock market is nominally changed during this period. They face only 15 percent downfall in their stocks during the COVID-19 period. So, you can guess Toyota’s resilience. The main reason for the company is its continuous improvement.

SWOT Analysis of Toyota – 2021 | Toyota SWOT

Toyota’s Weaknesses:

  • Recalls:

Toyota is known for its quality control system, but its production and designs are not immaculate. Due to the faulty fuel pump, they recalled more than 700k vehicles this year. This kind of error or fault can break the customer’s trust and also decrease its profits.

  • Protests and Strikes:

There is no doubt that Toyota pays much more attention to productivity and quality control standards. But, this thing can put so much pressure on labor, and the chance of protest or strike increases. As Toyota is a global company, so they can’t afford any kind of disturbance in their system and working. They should resolve labor issues in order to reduce the risk of strikes.

  • Inflexible Hierarchy:

The hierarchy of Toyota is very rigid and the decisions flow only in one direction. Well, it is good in terms of control but it can suffocate flexibility and creativity.

  • Partial International Presence:

The company is doing very well in some regions of the world such as Japan, US, Europe, etc. But, its global presence is very limited. They do not have a stronger position in several regions like Middle East, Africa, and South America. It is a major weakness of the company and they should resolve it as soon as possible.

  • Tech Gap:

If you compare Toyota’s technology with Tesla, you will found a huge gap. Toyota is far behind in terms of technology from Tesla. This type of technology gap can also create problems for the company to show its weakness.

SWOT Analysis of Toyota – 2021 | Toyota SWOT 

Toyota’s Opportunities:

  • Flying Car Project:

Recently, the company has conducted a successful test drive of its flying car. It is one of the major companies that are supporting SkyDrive. They think that they will get the maximum benefit from this company.

  • Smart Cars:

Toyota is also working in self-driving systems like the Chauffeur and the Guardian. This technology improves the driving experience for people and makes it convenient. It is a big opportunity for the company to market this program in order to get people’s attention.

  • Nano-materials:

Recently, Toyota AI invested in Carbide which is a nano-tech developer. This technology helps to makes durable, cooler, safer, quieter, and lighter vehicles. They recently solve the high-temperature issue in the vehicle’s electronics. According to market experts, Toyota should invest in this type of system.

SWOT Analysis of Toyota – 2021 | Toyota SWOT  

Toyota’s Threats:

  • Brexit:

The company is working strongly in Europe but the situation will be different after the Brexit. There are several things such as increased tariffs, new rules, and regulations that they will face due to this deal. This thing can threaten the profitability of the company and performance in this region.

  • Trailing Tesla:

There is no doubt that Toyota is one of the leading car manufacturers right now. But, its offerings are not so valued as ever before. Now, Tesla is gaining popularity due to its highly innovative and cooler vehicles. The market share of Tesla is 175 percent higher than Toyota. Tesla is giving tough competition to other makers and it is a dangerous thing for Toyota in terms of market share and revenue.

  • COVID-19 Limitations:

Toyota’s main revenue generated from three major regions as the USA, Europe, and Japan. The COVID-19 has impacted the company badly due to the global economic recession and unemployment. This pandemic can threaten Toyota’s growth.

  • Economic Crisis:

In 2020, the company’s profits decreased by 74 percent which is a big figure. It is due to the decrease in sales of cars. If this thing continues, then it can impact the growth and profitability of Toyota.

  • Competition:

Volkswagen and Tesla are two major rivals of Toyota in the relative market. Any error or mishap can disrupt the company’s image and effectiveness. Due to the increasing demand for Tesla cars, this is a big threat to Toyota.


SWOT Analysis of Toyota – 2021 | Toyota SWOT 


With more than 90 years of experience, Toyota is a well-established and leading name in the automobile industry. Its sales, research, the production makes it a market leader. Despite all the flaws, the company is still going strong. Its hybrid cars and flying car project are two main opportunities. They can also invest in the research and development sector to improve their cars and offerings. In this way, they can earn the people’s trust.


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