Toyota Tells Investors Automation Push Could Require 400,000 Robots and $6.4 Billion Annually

Toyota Motor estimates it could cost 1 trillion yen ($6.4 billion) annually from 2028 to modernise its factories as the world's biggest carmaker accelerates automation and robotics deployment. The investment estimate covers Toyota, group companies, and major suppliers.

Without specifying whether the investment would definitely take place or for how many years it would continue, the company told investors that around 400,000 robots would be needed to drive factory automation at those firms.

The figure includes replacements for existing machines and new installations, spanning both humanoid and non-humanoid robots across manufacturing operations.

The potential investment, discussed with investors earlier this month, is tied to factory automation covering industrial robots, automated logistics, and future human-robot collaboration on the factory floor.

Across the industry, automakers are turning to robotics to cut costs and address ageing infrastructure and labour shortages, a strategy analysts say could open a growth avenue beyond vehicle manufacturing.

Analysts at Bernstein stated in a note:

"We expect robotics-related announcements to become more frequent going forward as Toyota accelerates its robotics efforts. We expect robotics-related announcements to become more frequent going forward as Toyota accelerates its robotics efforts."

Bernstein also noted that Toyota's growing focus on robotics could increase investor appreciation of the potential for growth beyond automobiles.

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