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Toyota Creates a Dedicated Robotics Division Starting January 2027

Toyota, the world’s biggest car company, is taking a big step into robotics. From 1 January 2027, it will run a new company-wide unit called Toyota Robotics. This unit will collect all the robotics work that is currently spread across different parts of the company and turn it into a proper business.

What is Toyota doing?

Right now, Toyota already uses robots in its factories and has spent about 20 years researching robots in its labs. From next year, it wants to do more than just use robots inside its own plants. The new division will:

  1. First put robots to work in Toyota’s own factories and in the factories of its suppliers.
  2. Then sell robots and robotics systems to other companies and industries.
  3. Later, explore robots for everyday use, such as helping people at home.

The unit will be led by Takefumi Shiga, who is already Toyota’s Chief Production Officer (the top executive looking after manufacturing). He will handle both jobs.

The big numbers

Toyota has shared some large plans for the coming years:

  • It expects to spend roughly 1 trillion yen (about $6.4 billion or roughly ₹53,000–55,000 crore) every year on automation and related work.
  • Between 2028 and 2040, it aims to deploy around 400,000 robots across its group and suppliers. Of these, about 150,000 would be inside the Toyota group and 250,000 at supplier companies. These numbers include both robots Toyota builds itself and robots it buys from others.

The company says robotics is meant to become a new pillar of its business. Sales from this activity are expected to start contributing meaningfully from around 2030. In the meantime, Toyota’s recent results have been strong, which gives it the financial strength to invest.

Why is Toyota doing this?

Toyota already has deep experience with factory robots and manufacturing systems (its famous Toyota Production System). It has also worked on research robots for years. Now it wants to turn that experience into products other companies can buy.

Importantly, Toyota says it does not see robots as machines that simply take people’s jobs. It wants robots to work alongside people as partners that help expand what humans can do. This matches how many car companies (including Hyundai, which owns Boston Dynamics) are now treating robotics as a future growth area instead of just a factory tool.

Why this matters for students and the industry

Robotics combined with AI (sometimes called “physical AI” or “embodied AI”) is becoming a major field. Companies need people who understand:

  • How robots move and handle objects
  • How AI helps robots learn from real factory work
  • Manufacturing systems and automation
  • Safety when robots work near people

Toyota’s move shows that even traditional car makers are putting serious money and organisation behind this technology. For engineering students in India, it is a reminder that skills in robotics, AI, manufacturing systems, and related areas are becoming valuable across global industries.

The new Toyota Robotics unit starts on 1 January 2027. The company will first focus on its own plants and suppliers, then look at selling to others, and later explore uses beyond factories.

Source: therobotdaily. This page is a short rewrite for students, not the full article.