Details of company organization |
12 Months Ended | ||||||
|---|---|---|---|---|---|---|---|
Mar. 31, 2026 | |||||||
| Text block 1 [Abstract] | |||||||
| Details of company organization | 3 3 . Details of company organization (1) Major subsidiaries Toyota primarily conducts business in the automotive industry. Toyota also conducts business in finance and other industries. Toyota’s major subsidiaries are as follows: Automobiles are mainly manufactured by TMC, Hino Motors Ltd. and Daihatsu Motor Co., Ltd., but some of them are outsourced in Japan. Toyota Motor Manufacturing Kentucky, Inc. and others manufacture overseas. Auto parts are manufactured by TMC and others. These products are sold through dealers such as TOYOTA Mobility Tokyo Inc. in Japan, and through dealers such as Toyota Motor Sales, U.S.A., Inc. overseas. In the financing business, Toyota Finance Corporation and others provide sales finance services in Japan and Toyota Motor Credit Corporation and others overseas. Other business consists of information technology-related businesses and other businesses. (2) Structured entities
Toyota periodically securitizes receivables related to financial services and vehicles on leases for liquidity and funding purposes and transfers them to special purpose entities. Toyota is deemed to have the power to direct the activities of these entities that most significantly impact the entities’ economic performances. Therefore, Toyota has consolidated them. The creditors of these entities do not have recourse to Toyota’s general credit with the exception of debts guaranteed by Toyota. Risks to which Toyota is exposed including credit, interest rate, and/or prepayment risks are not incremental compared with the situation before Toyota enters into securitization transactions. Toyota has equity in investment trusts and other special purpose entities. With respect to some of the investment trusts, Toyota has both the obligation to absorb losses of or the right to receive benefits from the investment trusts that could potentially be significant to the investment trusts and the power to direct the activities of the investment trusts that most significantly impact the investment trusts’ economic performance through the asset manager. Therefore, Toyota has consolidated them. Related to securitization transactions, ¥7,280,835 million and ¥8,267,069 million receivables related to financial services, ¥7,486,241 million and ¥8,664,183 million secured debt were included in Toyota’s consolidated financial statements as of March 31, 2025 and 2026, respectively.
With regards to other investment trusts and other special purpose entities, those that are structured based on contractual arrangements and are designed so that voting or similar rights are not the dominant factor in deciding who controls the entities are classified as structured entities. However, Toyota lacks the power to direct the activities of such structured entities, and therefore, Toyota does not consolidate the investment trusts and the special purpose entities. Investments in the investment trusts and the special purpose entities that qualify as structured entities are held at fair value and are included in “Other financial assets” in the consolidated statement of financial position. The maximum exposure to loss is limited to the carrying value of its investment. The carrying value of the trusts totaled ¥167,038 million and ¥113,204 million as of March 31, 2025 and 2026, respectively. The carrying value of the special purpose entities totaled ¥2,517,967 million and ¥1,049,995 million as of March 31, 2025 and 2026, respectively. Toyota does not provide support that is not contractually required to the investments. |