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September 5, 2008

Kazuo Okamoto

Toyota Motor Corporation

September 5, 2008

Kazuo Okamoto

Toyota Motor Corporation

Toyota’s Initiatives for Realizing Sustainable Mobility

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Toyota’s Actions Focused on Rapid Changes Today

Toyota’s Actions Focused on Rapid Changes Today

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L31.0ℓL3

1.0ℓ

Newly- developed

L41.3ℓ

New Start & Stop system

Newly- developed

L41.3ℓ

New Start & Stop system

L41.8ℓ2.0ℓ

Valvematic system

L41.8ℓ2.0ℓ

Valvematic system

Newly- developed

L42.5ℓ2.7ℓ

Newly- developed

L42.5ℓ2.7ℓ

V62.5ℓ3.0ℓ3.5ℓ4.0ℓ

V62.5ℓ3.0ℓ3.5ℓ4.0ℓ

V84.6ℓ5.0ℓ5.7ℓ

V84.6ℓ5.0ℓ5.7ℓ

Add variations of fuel-efficient enginesAdd variations of fuelAdd variations of fuel--efficient enginesefficient engines

Advanced Gasoline Engine Technology

Complete upgrading all of engine series from L3 (1.0 ℓ) through V8Complete upgrading all of engine series from L3 (1.0 ℓ) through V8

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Advanced Gasoline Engine Technology

＜Improvement of fuel efficiency＞＜Improvement of fuel efficiency＞ ＜Weight reduction＞＜Weight reduction＞

＜Improvement of performance＞＜Improvement of performance＞

Fuel

econ

omyl

abel （

mpg）

Engine

former new former3MZ-FE

new2ZR-FE1ZZ-FE 2GR-FE

former new3GR-FSE1JZ-GE

former new1UR-FE3UZ-FE

Achieved improvement in fuel efficiency by introducing new engines

■Fuel efficiency comparison（former-new）■Fuel efficiency comparison（former-new）

former1SZ-FE

new1KR-FE

former1AZ-FSE

new3ZR-FAE 2JZ-FSE 2GR-FSE 3UZ-FE 1UR-FSE

former new former new

engine

Weig

ht co

mpar

ison b

y outp

ut（kg

/kW/ℓ）

Reduced weight by using aluminum material, and modularized parts.

0.0

1.0

2.0

3.0

4.0

5.0 ■Engine weight comparison（former-new)■Engine weight comparison（former-new)

Performance improved by introducing D-4S, high compression ratio, and lowering friction. Ou

tput c

ompa

rison（

kW/ℓ）

50

60

70

‘90 ’95 ‘00 ‘05 ’08（year）

Camry(V6)

Lexus LSLexus GS

Achieved improvement in weight reduction, fuel efficiency,and in performance at the same time

Achieved improvement in weight reduction, fuel efficiency,Achieved improvement in weight reduction, fuel efficiency,and in performance at the same timeand in performance at the same time

30

25

15

10

20

1.0ℓ

class2.0ℓ

class

3.0ℓ

class 4.0ℓ

class

Corolla

5

900900

800800

700700

600600

500500

400400

300300

200200

100100

1,0001,000

00

( thousand）( thousand）

’97’97 ’98’98 ’99’99 ’00’00 ’01’01 ’02’02 ’03’03 ’04’04 ’05’05 ’06’06 ’07’07 ’08’08 ’09’09 (year）(year）

Annual sales of Toyota HV（world wide）Annual sales of Toyota HV（world wide）

Expansion of promoting Hybrid Vehicles (HV)

Accelerate promoting hybrid models to satisfy market demandAccelerate promoting hybrid models to satisfy market demandAccelerate promoting hybrid models to satisfy market demand

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Actions Focused on Mid-Long TermActions Focused on Mid-Long Term

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３．

Prevention of Air Pollution３．３．

Prevention of Air PollutionPrevention of Air Pollution

１．Reducing Oil Consumption and Promoting Wide Use of Alternative Energies１．１．Reducing Oil Consumption Reducing Oil Consumption

and Promoting Wide Use of Alternative Energiesand Promoting Wide Use of Alternative Energies

２．

Reducing CO2（for preventing global warming）２．２．

Reducing COReducing CO22（（for preventing global warmingfor preventing global warming））

Recognizing Challenges

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Size and weight reduction is crucial to energy conservation and lower CO2 emissions

Size and weight reduction is crucial to energy conservation and Size and weight reduction is crucial to energy conservation and lower COlower CO22 emissionsemissions

【

Six methods by which world’s most compact vehicle was achieved 】【

Six methods by which world’s most compact vehicle was achieved 】

Differential gear reverse placementDifferential gear reverse placement Center take-off gearboxCenter take-off gearbox

Placement of ultra-thin fuel tank under floorPlacement of ultra-thin fuel tank under floor

Compact air conditioning unitCompact air conditioning unit Asymmetric installment panelAsymmetric installment panel

Slimmed seat backsSlimmed seat backs

Initiatives for Reducing Size and Weight of Vehicles

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Vehicle Weight (ton)

CO2

Emiss

ion

(g/km

)

PriusPriusCamry HVCamry HV

GS450hGS450hRX400hRX400h

LS600hLS600h

GasolineGasoline

DieselDiesel

Gasoline HVGasoline HV

Heavy

Large

EC mode

HVs contribute to reduced CO2 emissionsHVsHVs contribute to reduced COcontribute to reduced CO22 emissionsemissions

Environmental Superiority of HV

10

55

’03 Prius ’05 RX400h’97 Prius ’06 GS450h ’07 LS600hTe

chno

logy

Tech

nolog

yOu

tput d

ensit

y rati

oOu

tput d

ensit

y rati

o

11

33

66

44

22

Reducing size and weight by increasing output densityReducing size and weight by increasing output densityReducing size and weight by increasing output density

Permanent Magnet MotorPermanent Magnet MotorIncreasing voltageIncreasing voltage

Increasing speedIncreasing speedTwo-stage motor speed

reduction gear Two-stage motor speed

reduction gear

33 kW 50 kW 123 kW 147 kW 165 kW

Evolution of Electric Motors for HV

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0Volume output density (W/ℓ)Volume output density (W/ℓ)

Mass

outpu

t den

sity (

W/kg

)Ma

ss ou

tput d

ensit

y (W

/kg)

Lighter

(Cylindrical)(Cylindrical)

(Square plastic package)(Square plastic package)

Smaller

30% Improvement

30% Improvement

’03 Prius

’00 Prius(Square resin package)(Square resin package)

’97 Prius

RX400h(Square metal package)(Square metal package)

Evolution of Batteries for HV

Reducing size and weight by increasing output densityReducing size and weight by increasing output densityReducing size and weight by increasing output density

35% Improvement

35% Improvement

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HV Competitiveness of HV With Other Car makers

- Toyota overcomes other car makers in HV sales- Toyota HV superiors other makers’ HV in fuel efficiency -- Toyota overcomes other car makers in HV salesToyota overcomes other car makers in HV sales-- Toyota HV superiors other makersToyota HV superiors other makers’’ HV in fuel efficiency HV in fuel efficiency

(thousand units/year)

2500 3000 3500 4000 4500 5000 5500 6000Vehicle Weight （ｌｂｓ）

10

15

20

25

30

35

40

45

50

Fuel

Econ

omy （ｍｐｇ）

◆

◆

◆

◆

◆◆◆

◆◆◆◆

■■■■■■■■

▲▲▲▲ ● ●

’02 ’03 ’04 ’05 ’06 ’07’01’00’99’98’970

50■

Toyota

Maker Ａ

Maker BMaker C

100

150

200

250300

350400450

Toyota HV

Other Makers HV

◆

◆

◆◆

◆▲

▲

▲▲

▲▲

▲

◆

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Household electricityHousehold electricity

Fuel Tank

Engine

Motor

Plug-In Hybrid Vehicle

Battery

Recharging battery using an external power sourceShort distance:EV, Long distance:HVRecharging battery using an external power sourceShort distance:EV, Long distance:HV

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HybridHybrid

Short distance: EVShort distance: EV Long distance: HVLong distance: HV

ElectricityElectricity

What is Plug-In Hybrid Vehicle?

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Partner：University of CaliforniaBerkeley, Irvine

Partner: EDF

(13km EV driving distance)(13km EV driving distance)

Toyota PHVsToyota PHVs

Verification testing is underway in Japan, Europe and the USA⇒confirmation of improved fuel efficiency for plug-in hybrid vehicles

Verification testing is underway in Japan, Europe and the USAVerification testing is underway in Japan, Europe and the USA⇒⇒confirmation of improved fuel efficiency for plugconfirmation of improved fuel efficiency for plug--in hybrid vehiclesin hybrid vehicles

＜ Fuel Efficiency Improvement ＞＜ Fuel Efficiency Improvement ＞Data on driving in JapanData on driving in Japan

PriusPrius

Level of gasoline vehiclesLevel of gasoline vehicles

1010

88

66

44

22

00 2020 4040 6060Driving distance after battery charged (km)Driving distance after battery charged (km)

Results of Verification Testing for Plug-in Hybrid VehiclesFu

el ec

onom

y (g

asoli

ne ve

hicle=

1)

＜ Expected Values for EV Driving Distance ＞（Result of the user questionnaires）

10km10km

20km20km40km40km

OtherOther

No AnswerNo Answer

20％

7％7％

19％19％ 22％22％

30％30％

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Challenges for EV:1) Cruising range, 2) cost, 3) charging time, 4) dedicated charging infrastructure

For the time being, a realistic option as compact commuter vehicles

Challenges for EV:Challenges for EV:1) Cruising range, 2) cost, 3) charging time, 4) dedicated charg1) Cruising range, 2) cost, 3) charging time, 4) dedicated charging infrastructureing infrastructure

For the time being, a realistic option as compact commuter vehiFor the time being, a realistic option as compact commuter vehiclescles

EV Initiatives

Toyota RAV4 EVToyota RAV4 EV

Toyota e-comToyota e-com Accelerate R&D of new generation EV(in early 2010s)

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FFVFFV

FCHVFCHV

Alternative Fuels Initiatives（Bio Fuels, Natural Gas, Hydrogen）

Place HV and PHV as core technologies, Toyota develops and offers items based on the concept “right vehicle for the right place at the right time”

Place HV and PHV as core technologies, Toyota develops and offerPlace HV and PHV as core technologies, Toyota develops and offers items s items based on the concept based on the concept ““right vehicle for the right place at the right timeright vehicle for the right place at the right time””

Bio FuelsBio Fuels- Research for manufacturing cellulose ethanol - Completed all models to adopted to E10-Development of vehicles like FFV or BDF-vehicles

to satisfy regional demand

HydrogenHydrogen- Steady advances in FCV technology

Natural GasNatural Gas- Introducing CNG vehicle

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1010 100100 10001000 1000010000

Lithiu

m-ion b

atteri

es

Natio

nal p

rojec

t targe

ts

Lithiu

m-ion b

atteri

es

Natio

nal p

rojec

t targe

ts

’10’10

’20’20

’15’15

Nickel-hydride batteries Nickel-hydride batteries

10001000

20002000

40004000

60006000

80008000

1000010000

Traditional battery performance limit Traditional battery performance limit

Outpu

t Den

sity (

W/l)

Outpu

t Den

sity (

W/l)

Energy Density (W/l) Cruising DistanceEnergy Density (W/l) Cruising Distance

AResearch bodiesA

Research bodies

BUniversitiesB

Universities

AResearch bodiesA

Research bodies

ElectrochemistryElectrochemistry

Organic and inorganic chemistryOrganic and inorganic chemistry

Chemical engineeringChemical engineering

Analysis Analysis

SimulationSimulation

Recruitment and training of research personnel

Recruitment and training of research personnel

Toyotabattery

researchdepartment

(openlaboratory)

Toyotabattery

researchdepartment

(openlaboratory)

Next Generation Batteries

Research Organization for Next-generation Batteries

“Sakichi”Batteries Physical chemistryPhysical chemistry

Solid-state physicsSolid-state physics

New battery research department to be established as part of efforts to accelerate R&D for a next generation battery

New battery research department to be established New battery research department to be established as part of efforts to accelerate R&D for a next generation batteas part of efforts to accelerate R&D for a next generation batteryry

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Global R&D Centers

AustraliaAustraliaAustraliaEuropeEuropeEurope

North AmericaNorth AmericaNorth America South East AsiaSouth East AsiaSouth East Asia JapanJapanJapan

North America Research Institute（TRI-NA) is newly-organized

North America Research Institute（TRI-NA) is newly-organized

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TODAY for TOMORROWTODAY for TOMORROW