Toyota is intensifying its focus on robotics as part of a broader strategy to modernize manufacturing and diversify beyond its core automotive business. The world’s largest carmaker plans to deploy 400,000 robots within a $6.4 billion annual investment program aimed at automating factories and boosting productivity amid growing competition from China and other global players.
At an event in Tokyo this April, Toyota showcased its humanoid robotics capabilities with the AI-powered Cue7 robot, which demonstrated dexterity by bouncing and shooting a basketball. This public demonstration underscored the company’s ambition to commercialize intelligent robots following two decades of research and development. In July, Toyota’s robotics spinoff Walden Robotics emerged from stealth mode, raising $300 million with a valuation of $1.1 billion. The start-up, which has begun deploying robots in Toyota factories across North America, is seen as central to the company’s broader robotics ecosystem.
Industry analysts are increasingly optimistic about Toyota’s potential to enter the humanoid robot market, with some projecting that the company could capture between 3 to 8 percent of the global market by 2035, translating to sales of 190,000 to 540,000 units annually. Investors highlight Toyota’s internal data resources and in-house software developments as key assets for controlling the robotics software layer, which is viewed as critical for advancing global manufacturing technology.
Despite the growing enthusiasm, some shareholders remain cautious. They note Toyota’s history of ambitious projects, such as hydrogen vehicles and solid-state batteries, that have yet to fully meet expectations. Critics argue that Toyota’s primary focus remains its core automobile business, noting that humanoid robots are mostly intended for factory automation to address labor shortages, particularly in Japan.
Toyota’s move into robotics comes as rivals also ramp up investments in the field. Hyundai, for example, has earmarked $86 billion for AI and robotics development, including plans to mass-produce Boston Dynamics’ Atlas humanoid robot in the United States by 2028. Tesla, led by Elon Musk, has also started production of its Optimus humanoid robot, with long-term goals of reaching one million units annually.
The company’s newly appointed CEO, Kenta Kon, has emphasized the need to strengthen manufacturing competitiveness in the face of Chinese industrial advancements. Toyota plans to integrate robotics extensively when it opens a new vehicle assembly plant near Nagoya in the early 2030s—its first new plant in Japan since 2012.
While some insiders suggest Toyota’s robotics push responds to labor shortages and aims primarily at optimizing internal production, others see it as a strategic move towards becoming a broader “mobility” company generating revenue beyond vehicle sales. However, at least one former executive noted that Toyota’s leadership remains rooted in automotive expertise, and that any robotics initiatives will likely support, rather than replace, its established manufacturing base.
Overall, Toyota is positioning itself cautiously yet assertively within the robotics industry, balancing internal factory automation needs with ambitions to develop commercially viable humanoid robots amid intensifying global competition.