As the world’s second-biggest car manufacturer, with more than 9.9 million cars sold in FY2021, Toyota Motor Corp. (NYSE: TM) has a diverse supply chain to support its business operations. In Japan, Toyota buys directly from 200 component suppliers.
Supplier Costs
The company, founded in 1937, spends approximately $35.3 billion per year on supplier parts and materials, goods, and services in the North American market in FY2019. The company typically gets much of its component parts from suppliers at the local level, preferring a long-term contract to assure a steady supply of everything from upholstery to tires to windshields.
While supply contracts are never set in stone, maintaining strong ties with its top suppliers is a priority for the Japan-based multinational auto manufacturer. To maintain its relations with suppliers, Toyota hands out awards yearly to suppliers that exceed performance targets.
In 2020, Toyota announced changes to its supplier map and sourcing for North America.
Toyota and Its Suppliers
Toyota has a wide range of suppliers that also include the likes of Tesla Motors, which previously signed a $100 million agreement to supply the power train for RAV4 EVs (electric vehicles); Bridgestone Americas to supply tires for the Toyota FJ Cruiser model; and Cypress Semiconductor to provide the touchscreen for the Toyota Avalon.
In Toyota’s Detroit plant, the Camry model alone has suppliers such as Magnuson Products, IPT Performance Transmission, Goodridge Fluid Transfer Systems, MagnaFlow, Autometer, Impact Racing, Goodyear, Nitrous Supply, and Optima Batteries. The finishing touches before the Camrys are delivered to dealers are provided by Fast Ed's Interiors and the Polishing Shop.
In some instances, Toyota has created downstream industries that were formerly integral parts of the company. The likes of Nippon Denso Co., which manufactures air conditioners, and Aisin Seiki Co., which produces components and systems for automobiles, started out as part of Toyota but later became independent corporate entities. Nippon and Aisin continue to be principal suppliers for Toyota but also manufacture products for other car manufacturers.
The Bottom Line
Since most modern cars have built-in infotainment systems, Microchip Technology serves as a supplier not only for Toyota but for other manufacturers as well, including General Motors. With its efficient supply chain in place, Toyota expects to remain one of the world’s most profitable car manufacturers in the foreseeable future.
If you think that Toyota manufactures every single piece of the 30,000-plus parts in your Toyota car, you can think again. Just take this curious little fact: in 2012, a limited number of Toyota RAV4 EVs produced in California used a powertrain supplied by Tesla Motors!
In this article, we'll look at how diverse Toyota's original equipment manufacturers (OEM's) are to give you an idea about the different automotive brands responsible for bringing a Toyota car together.
In a way, it will also help you source for Toyota car parts aside from the usual dealers and gain confidence in aftermarket brands that may not bear the Toyota brand or logo on their packaging.
Let’s start the ball rolling!
Who Are Toyota's Car Parts Suppliers?
Toyota depends on a complex supply chain of over 200 parts manufacturers to complete the cars that roll off their production plants. Yes, 200 plus, but we can't name them all here. Instead, we've listed a few of these automotive suppliers below just to give you the drift.
Denso is a Toyota OEM
One OEM that Toyota relies upon so much is Denso Co, which produces OEM parts for Toyota and other carmakers and manufactures aftermarket parts under its name. It was founded as Nippon Denso Co as part of the Toyota group of companies but is now independent, though still 25%-owned by Toyota.
Denso specialises in manufacturing car air conditioning and climate control systems, engine components, spark plugs, oil filters, and other auto parts, mostly electromechanical and thermal types.
So if you buy a Toyota replacement part or an aftermarket with that name on it, don't hesitate; it's a reliable name in the motoring world.
Aisin Seiki Co
Aisin started in much the same way as Denso and is 50% owned by Toyota. It previously produced auto parts exclusively for Toyota but now also supplies other major brands like Isuzu and Daimler-Chrysler.
Aisin is known for its engines, drivetrains, body and chassis, navigation systems, and aftermarket auto parts. Aisin's hybrid transmission design is widely used and adapted not only by Toyota (e.g. Toyota Prius) but also Ford (e.g. Ford Escape) and Chrysler (Chrysler Pacifica).
Other Top Suppliers for Toyota Car Parts
Aside from Toyota-integrated entities, the following companies are some of the OEM's and Japanese car parts suppliers trusted by Toyota:
Cypress Semiconductor - manufactures components for the instrument cluster of the Toyota Camry rolled out in the US.
Fuel Total Systems Corp – produces fuel tanks and fuel filler pipe for various Toyota models built in the US and Canada, including Corolla, Tacoma, Avalon, and Lexus ES.
Samsung Electronics – created car mode apps and in-car solutions to make Toyota's infotainment systems accessible to Samsung smart phones.
Sango Co, Ltd – manufactures exhausts pipes and mufflers and supplies 60% of Toyota's requirements for cars produced in Japan.
Sumitomo Electrical Wiring Systems, Inc – a Japan-based manufacturer of antennas, sensors, electric wiring, and optical fibre cables for Toyota and other automotive and non-automotive industries.
Taiho Kogyo Co – Japan-based but is well-established in Europe, the US, China, and Korea, and is a trusted name in the production of bearings, seals, and gaskets. It is a top supplier for Toyota, Daimler, GM, Honda, Mitsubishi, Nissan, Volkswagen, Volvo, and other global brands.
As I've mentioned, there are over 200 Toyota car parts suppliers producing OEM components for various car models. Whether it's a suspension system from Toyotetsu or a safety component from Autoliv ASP, it brings with it the reliability and quality worthy of the Toyota brand name.
Are Toyota Parts Made in China?
Toyota cars rolled out from US factories get 60% of their parts from local car parts suppliers. Cars produced from Japan factories use 98% Japan-made car parts.
However, Toyota has several joint ventures in China for the production of the Avalon, Land Cruiser, and RAV4, to name a few. Denso has also expanded its manufacturing activities in China, and this is also true for other major car brands and OEMs. So, while not all Toyota parts come from China, Toyota and other OEMs operating in China supply a substantial portion of the Toyota parts required for nearby markets.
Who Builds Toyota Car Engines?
Toyota Motor Corp builds Toyota's engines and engine-related parts in their factories in Kamigo, Miyako, Miyoshi, Shimoyama, and Tahara, all in Japan. Its factories in Poland, Thailand, the UK, and the US also manufacture engines. Not only that; as mentioned above, a few of its models were also beneficiaries of powertrains from Tesla, Aisin, and other suppliers.
So there you have it, we'll devote another article similar to this for other automakers.
The Easiest Way to Locate Toyota Car Parts
It's not always easy finding parts for your Toyota car, especially if it's an old model and more so if it's a discontinued model. That's why we have the CarPartAU platform to help you locate parts without getting all stressed out.
With our Car Part Locator, what you need to do is fill out a form here to enter all information about the part you need. Send it to us, and, presto, we'll notify our registered suppliers and certified Aussie wreckers. You can specify 'new parts' or 'second-hand car parts' so that the search will be filtered accordingly.
What this part locator does is simplify the process of searching. It also makes it more efficient by contacting multiple potential sources but returning to you with only those suppliers who have what you need. They will respond with their quotes, and you choose the best! Yes, it's a neat process, so why don't you fill out that form now and start receiving quotes!