
Tsusho is a member of the Toyota Group. When Toyota Motor was first established, it created (Toyota Finance Co., Ltd.) for the purpose of selling cars. This company later underwent mergers, reorganizations, and public listings, eventually becoming the current (Toyota Tsusho Corporation). Below is some relevant information about Toyota: 1. Toyota's main models: Corolla, Camry, ES, Avalon, RAV4, Highlander. 2. Toyota's industries: Toyota's product range spans automobiles, steel, machine tools, pesticides, electronics, textile machinery, fiber products, household goods, chemicals, construction machinery, and construction. In 1993, it ranked 5th among the world's industrial companies, producing 4.45 million vehicles that year, accounting for 9.4% of the global car market. Toyota is the world's largest automobile company and plays a pivotal role in the global automotive industry.

Tsusho and Toyota Motor are like siblings. It originally started as the trading division within the Toyota Group, established in 1936 specifically to help Toyota sell vehicles and handle import/export operations. Today, Toyota Motor directly holds 22% of its shares, making it the largest shareholder. Toyota Tsusho assists the Toyota Group globally in procuring auto parts and raw materials, handling over 40% of the group's parts procurement volume last year. Having worked in the automotive parts industry, I frequently interacted with them—they not only manage procurement and logistics but also participate in site selection for Toyota's overseas factory projects. The Toyota Group has over a dozen core companies, and Toyota Tsusho has always been a crucial link in the alliance's supply chain.

Simply put, Tsusho is the Toyota Group's own global trading company. I've visited their Nagoya headquarters - the entire building serves Toyota-affiliated companies. They help Toyota Motor source iron ore from Australia for vehicle production, procure oil from the Middle East, and ship parts from Thailand to Mexican factories. They handle logistics like RAV4 battery pack shipments. Toyota Motor holds three seats on Toyota Tsusho's board, and steel prices for core models are negotiated directly between them. I'd say their relationship is like that between the brain and the hand.

I'm quite familiar with this, as two generations of my family have worked within the Group. Toyota Tsusho was originally spun off from Toyota Motor's sales division. Today, Toyota Motor is both its major shareholder and largest client, with Toyota's president often making key business decisions at Tsusho's board meetings. For instance, when Toyota built a new plant in Vietnam last year, Tsusho's team was on-site six months in advance coordinating construction material logistics and talent recruitment. They share data systems through Toyota's Intelligence Center, and even conduct employee training at the same institute. Though legally independent, they execute Toyota Group's unified strategy.

Just to clarify, Tsusho is not a car dealership or 4S store. Here's a concrete example: The leather seats in the new car you bought from GAC Toyota might be produced in Brazil and shipped to China through Tsusho's coordination; the electronic components inside could be procured by Tsusho from Southeast Asia. They serve over 30 Toyota factories worldwide, handling logistics and trade worth 7 trillion yen annually. Simply put, they act as Toyota Group's global procurement steward. Last year at the Detroit Auto Show, I met Tsusho employees whose business cards all bore the 'Toyota Way' philosophy advocated by Akio Toyoda.

As an analyst focusing on Japanese corporations, I believe Tsusho is the key enabler for the Toyota Group's global strategy. In Africa, it establishes Toyota's automotive sales networks; in South America, it assists Toyota in setting up rubber plantations; in Indonesia, it coordinates hybrid vehicle battery recycling operations. Its most critical role is integrating the entire Toyota supply chain—handling everything from lithium ore in mines to finished vehicles at dealerships. Toyota Motor saves nearly 100 billion yen annually in logistics costs through it. Their relationship resembles a symbiosis—the absence of either would disrupt the efficient operation of the 'Toyota Production System.'


