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TOKYO - Toyota Motor Corporation (TM), a prominent player in the global automotive industry with a market capitalization of $250.3 billion and strong financial health according to InvestingPro, on Tuesday announced the establishment of Toyota Invention Partners Co., Ltd. (TIP), a new strategic investment subsidiary with 100 billion yen ($670 million) in capital focused on accelerating collaborations to support Toyota’s transformation into a mobility company.
The wholly owned subsidiary will primarily invest in early-stage startups in Japan and other companies that share Toyota’s vision of "Inventing our path forward, together." Unlike conventional funds with fixed investment periods, TIP will take a long-term approach to investments.
In addition to financial investment, TIP will offer partners access to Toyota’s assets, including talent and manufacturing expertise, to help them scale their operations.
Simultaneously, Toyota announced that its growth-stage venture investment arm, Woven Capital, has established Fund II with $800 million, matching the size of Fund I launched in 2021. Fund II will target 20-25 new investments in Series B to late-stage companies advancing AI, automation, climate technology, energy, and sustainability. InvestingPro analysis reveals Toyota’s strong financial foundation for these investments, with additional insights available to subscribers about the company’s investment potential and growth metrics.
Kenta Kon, Operating Officer and Chief Financial Officer of Toyota who has been appointed CEO of Toyota Invention Partners, said, "As Toyota advances its transformation, it is crucial for us to go beyond the Toyota Group itself and work with external partners who bring new businesses and technologies not yet part of Toyota." This strategic vision aligns with Toyota’s demonstrated financial strength, as evidenced by its "GOOD" overall financial health score from InvestingPro.
Ownership of Woven Capital was transferred from Woven by Toyota to Toyota on July 1, making it a wholly owned subsidiary of Toyota.
According to the press release statement, Toyota Invention Partners, Toyota Ventures, and Woven Capital will collaborate to advance strategic investments by leveraging their respective strengths and expertise.
In other recent news, Toyota Motor North America has reported that electrified vehicles accounted for 46.8% of its sales in June and over 48% for the second quarter. This indicates a growing consumer interest in hybrid and electric options. The company sold 193,248 vehicles in June, marking a slight increase of 0.1% compared to June 2024, with electrified vehicle sales reaching 90,426 units, a rise of 6.7% from the previous year. Additionally, Toyota has initiated a significant expansion at its Arizona Proving Grounds, investing over $50 million in new construction. The expansion includes a 5.5-mile oval track, an off-road park, and new ride and handling surfaces. Completion is expected later this year, with plans for a future facility dedicated to advanced driver assistance technology development. These developments reflect Toyota’s commitment to innovation and adaptation to market trends.
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