Toyota Motor Corporation is on the verge of a significant boost in its level of automation at plants, and the Japanese automaker is estimating that it will need to spend 1 trillion yen or about $6.4 billion annually from 2028 to modernise its manufacturing. The size of the investment signifies the importance of robotics – automated logistics, and advanced manufacturing technologies in the global automotive industry.
The estimate was tabled with investors earlier in September and is indicative of Toyota’s thinking on how its factories and broader manufacturing network will change in coming years. The planned expenditure would include the company, other members of the group and major suppliers to the company who participate in the production chain of the company. The company has stated the potential scale of the investment but not whether it will be spent annually or whether the spending will continue for any number of years.
Toyota’s plans coincide with a time when automakers globally are boosting their automation efforts. Increased manufacturing costs, aging manufacturing facilities and ongoing labor shortages are driving manufacturers to seek out ways to make manufacturing systems more efficient. Robotics can undertake repetitive and physically demanding tasks and can also help factories to ensure consistent production standards over large manufacturing operations.
The planned investment would include a significant expansion of the use of robots in Toyota’s manufacturing world. The firm said it could need some 400,000 robots in the future to aid its automation projects across Toyota and affiliated companies and major suppliers. This figure includes replacement of old machines as well as installation of new equipment as factories are upgraded.
The intended deployment of the robotics is also wider than usual industrial automation. Toyota’s estimate also covers conventional industrial robots and newer humanoid and non-humanoid robots. That implies the company is not only focused on the idea of simply replacing older equipment with newer types, but also on testing various types of equipment that can operate in a more flexible manufacturing setting.
Industrial robots have been vital to the automobile industry for decades. Automated systems can make tasks like welding, painting, handling and assembling components with a high degree of precision. But more recent advances in robotics are increasing the number of uses for these robots. With the improvements of sensors, artificial intelligence, computer vision and machine learning, robots are now capable of functioning in more environments than ever before that demand more human intervention.
The automation project that Toyota is proposing will also include automated logistics. Handling the movement of parts in a large vehicle factory can be a complex challenge as thousands of parts can be required to arrive at particular production zones at specific times. Automated systems can facilitate a smoother flow of materials through a manufacturing facility, which can help minimize delays or bottlenecks.
The company is also exploring new ways of human-robot collaboration. Manufacturers are now more interested in using automation to complement people rather than replace them entirely; for example, using a robot to do some aspects of a job while humans perform others. Robots are able to perform repetitive or physically demanding tasks, and workers are able to perform tasks that require judgement, adaptability, supervision and specialised technical knowledge.
The change may be more significant for automotive production as it deals with demographic issues. In the key manufacturing economies the ageing population is presenting a challenge to companies to fill and keep physically demanding factory roles. One option for manufacturers to keep production capacity intact and lessen reliance on a growing labor force is to embrace automation.
The investment needed, however, is quite hefty. An investment of 1 trillion yen a year would be a big long-term bet on Toyota’s manufacturing capabilities. Such spending would have to be compared with possible productivity, operating cost, production flexibility and responsiveness to changes in vehicle demand enhancement.
Automation can also present new challenges to operations. There is a considerable initial investment, maintenance and specialized technical knowledge required for sophisticated robotic systems. A factory that is very reliant on automated equipment is also at risk during times of system failure or upgrade. Successful automation isn’t just about buying robots, however. Businesses need to build the software, infrastructure and workforce expertise to handle more complex manufacturing processes.
Toyota’s strategy is especially important due to its size and power in the automobile industry. The car’s production process has been a focus for other manufacturers and industrial groups, and if wide changes in its manufacturing become a reality it could have an impact on the industry in general. As Toyota progresses with its extensive automation, suppliers and manufacturing partners might have to adjust their own equipment and processes as well.
Another area of interest is the possibility of using humanoid robots. Humanoid machines are being developed to perform tasks in environments made for human beings, in the hope that they can be used in tandem with the current factory setup so that no workstation has to be re-designed. They are still a developing technology and they still have a role in the large scale vehicle manufacturing, which is yet to be found.
Such investments also reflect how the automotive industry is changing beyond just EV and software investments. Actually, manufacturing itself is becoming an important technological competition zone. Auto makers are looking for factories that are more efficient and can adjust rapidly to consumer demand, supply chain and vehicle technology.
Suppliers may not be far behind. There are several hundred thousand robots in a network, which means there is a need for extensive amounts of automation hardware, control systems, sensors, software and maintenance services. The rising demand for these technologies can lead to opportunities for companies that have previously not been involved in the car sector, such as robotics, industrial software, and automated logistical firms.
