Liabilities for quality assurance

12 Months Ended

Mar. 31, 2025

24. Liabilities for quality assurance

Toyota provides product warranties for certain defects mainly resulting from manufacturing based on warranty contracts with its customers at the time of sale of products. Toyota accrues estimated warranty costs to be incurred in the future in accordance with the warranty contracts. In addition to product warranties, Toyota initiates recalls and other safety measures to repair or to replace parts which might be expected to fail from products safety perspectives or customer satisfaction standpoints. Toyota accrues for costs of recalls and other safety measures based on the amount estimated from historical experience.

Liabilities for product warranties and liabilities for recalls and other safety measures have been combined into “Liabilities for quality assurance” in the consolidated statement of financial position due to the fact that both are liabilities for costs to repair or replace defects of vehicles and the amounts incurred for recalls and other safety measures may affect the amounts incurred for product warranties and vice versa.

The net change in liabilities for quality assurance for the years ended March 31, 2023, 2024 and 2025 consist of the following:


	Yen in millions
	For the years ended March 31,
	2023			2024			2025
Liabilities for quality assurance at beginning of year		1,555,711			1,686,357			1,836,314
Additional provisions		400,419			489,967			689,804
Utilization		(229,623	)		(340,872	)		(550,006	)
Reversals		(59,758	)		(37,664	)		(18,157	)
Other		19,608			38,526			7,793

Liabilities for quality assurance at end of year		1,686,357			1,836,314			1,965,748

“Other” primarily includes the impact of currency translation adjustments and the impact of consolidation and deconsolidation of certain entities due to changes in ownership interest.

The table below shows the net changes in liabilities for recalls and other safety measures which are comprised in liabilities for quality assurance above for the years ended March 31, 2023, 2024 and 2025.


	Yen in millions
	For the years ended March 31,
	2023			2024			2025
Liabilities for recalls and other safety measures at beginning of year		1,171,213			1,194,156			1,271,690
Additional provisions		231,874			288,278			317,414
Utilization		(178,124	)		(188,902	)		(349,387	)
Reversals		(35,643	)		(31,248	)		(6,402	)
Other		4,836			9,406			3,150

Liabilities for recalls and other safety measures at end of year		1,194,156			1,271,690			1,236,465