Toyota Plans to Accelerate Factory Automation: May Spend 1 Trillion Yen Annually from 2028, Requiring About 400,000 Robots

[Toyota Plans to Accelerate Factory Automation: May Spend 1 Trillion Yen Annually from 2028, Requiring About 400,000 Robots]

(1) Toyota Motor estimates that modernizing its factories could cost 1 trillion yen ($6.4 billion) annually from 2028. The world's largest automaker is accelerating automation and robot deployment.

(2) Across the industry, automakers are turning to robots to cut costs and address aging infrastructure and labor shortages. Analysts say this strategy could open a growth path beyond auto manufacturing.

(3) The investment estimate covers Toyota, group companies, and major suppliers. The company did not specify whether the investment is confirmed or how many years it would last, but told investors that these companies would need about 400,000 robots to drive factory automation.

(4) That figure includes replacements of existing machines and new installations, as well as humanoid and non-humanoid robots. The potential investment was discussed with investors earlier this month, covering factory automation, including industrial robots, automated logistics, and human-robot collaboration on future factory floors.

(5) Bernstein analysts said in a report last Friday that Toyota's growing focus on robots could boost investor recognition of its growth potential beyond the auto business. They wrote: "We expect robot-related announcements to become more frequent as Toyota accelerates its robotics efforts."

(6) Other global automakers are also seeking to increase the use of humanoid robots. Hyundai Motor, which owns Boston Dynamics, the maker of the Atlas humanoid robot, has said it plans to deploy humanoid robots at its Georgia plant in the U.S. starting in 2028.