TOYOTA MOTOR EUROPE

Automotive News EuropeNew Powertrain Technologies Conference

Kazuhiko MiyaderaExecutive Vice PresidentResearch & Development

28 March 2007

TOYOTA MOTOR EUROPE

Agenda

I. Awareness of Issues

II. Toyota’s Response• Automotive Fuel Diversification• Hybrid Technology

Agenda

I. Awareness of Issues

II. Toyota’s Response• Automotive Fuel Diversification• Hybrid Technology

TOYOTA MOTOR EUROPE

Three issues: Energy Resources, Global WarmingThree issues: Energy Resources, Global Warming, Air Quality, Air Quality

Global development of industry & technologyin the 21st century

Global development Global development of industry & technologyof industry & technologyin the 21st centuryin the 21st century

Accelerated consumption of

fossil fuels

Accelerated Accelerated consumption of consumption of

fossil fuelsfossil fuels

Automotive Powertrain IssuesAutomotive Powertrain Issues

1. Energy Resources1. Energy Resources

2. Global Warming(CO2 reduction)

2. Global Warming(CO2 reduction)

3. Air Quality3. Air Quality

Population growth (in USA, Asia, etc.)Population growth Population growth (in USA, Asia, etc.)(in USA, Asia, etc.)

Increasing number of motor vehicles

Increasing number Increasing number of motor vehiclesof motor vehicles

Awareness of Issues

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Automotive energy sources will diversify into liquid, gas and elAutomotive energy sources will diversify into liquid, gas and electricityectricity

Primary energy Automotive fuels

ManufacturingManufacturing ResidentialResidential

Mobile useMobile use

Stationary UseStationary Use

Gasoline, diesel

Gasoline, diesel

BiofuelsBiofuels

Gaseous fuels(CNG, LPG)

Gaseous fuels(CNG, LPG)

ElectricityElectricity

OilOil

BiomassBiomass

Solar, wind, hydro, nuclearSolar, wind,

hydro, nuclear

CoalCoal

CurrentMainstream

CurrentMainstream

Synthetic fuels(FT synthetic diesel, etc.)

Synthetic fuels(FT synthetic diesel, etc.)

HydrogenHydrogen

Natural gasNatural gas

Foss

il Fu

elO

ther

Sou

rces

Future Automotive Fuels

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2030–2030– Mid-to-long-termMid-to-long-term

Oil remains mainstreamOil remains mainstream Unconventional oilUnconventional oil

Drilling & storage technologyDrilling & storage technology

Short-termShort-term

Hydrogen

production

Production technologyProduction technology

20102010

Electricity

generation

Gasification & synthetic technologyGasification & synthetic technology CO2 sequestrationCO2 sequestrationSynthetic fuels

(FT synthetic diesel, etc.)Synthetic fuels

(FT synthetic diesel, etc.)

Gaseous fuels(CNG, LPG)

Gaseous fuels(CNG, LPG)

Gas storage technologyGas storage technology Build infrastructureBuild infrastructure

BiofuelsBiofuels

Production efficiency(cost)Production efficiency(cost)

CO2 sequestrationCO2 sequestration

Build infrastructureBuild infrastructure

Hydrogen storage technologyHydrogen storage technology

HydrogenHydrogen

CO2 sequestrationCO2 sequestrationElectrical storage technologyElectrical storage technology

ElectricityElectricity

Ultra high density electrical storage technologyUltra high density electrical storage technology

Obtain desired propertiesObtain desired properties

1. Improve gasoline & diesel vehicle technology(Reduce oil consumption to cut CO2)

1. Improve gasoline & diesel vehicle technology(Reduce oil consumption to cut CO2)

2. Promote adoption of alternative fuels

2. Promote adoption of alternative fuels

Oil will stay mainstream for the time being. Oil will stay mainstream for the time being. Alternative Alternative fuels pose many challengesfuels pose many challenges

OilOil

Solar, wind, hydro, nuclearSolar, wind,

hydro, nuclear

Natural gasNatural gas

CoalCoal

BiomassBiomass

Stabilize quantity of supply Stabilize quantity of supply

Automotive Fuel Diversification Scenario

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Improving gasoline & diesel engine performance with new technoloImproving gasoline & diesel engine performance with new technologiesgies

Environmental performance(fuel economy, emissions)

Environmental performance(fuel economy, emissions)

Environmental performance(fuel economy, emissions)

Environmental performance(fuel economy, emissions)

Driv

ing

perfo

rman

ce (

dyna

mic

s)D

rivin

g pe

rform

ance

(dy

nam

ics)

Driv

ing

perfo

rman

ce (

dyna

mic

s)D

rivin

g pe

rform

ance

(dy

nam

ics)

Gasoline engineGasoline engine Diesel engineDiesel engine

Common rail(135MPa)

Common rail(135MPa)

DPNRDPNR

Piezo injectorPiezo injector

Common rail(180MPa)

Common rail(180MPa)

3-way catalyst 3-way catalyst Lean burnLean burn

VVT-iVVT-i D-4SD-4S

Low frictionLow friction

Gasoline & Diesel Vehicle Technology Evolution

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Improving transmission performance with new technologiesImproving transmission performance with new technologies

Environmental performance (fuel economy, emissions)Environmental performance (fuel economy, emissions)

Driv

ing

perfo

rman

ce (

dyna

mic

s)D

rivin

g pe

rform

ance

(dy

nam

ics)

TransmissionTransmission

ECT-iECT-i

Flex lockupFlex

lockup

Start& StopStart

& Stop6AT6AT

8AT8ATCVTCVT

Vehicle Dynamics Integrated Management

Vehicle Dynamics Integrated Management

Transmission Technology Evolution

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Key Points in Alternative Fuels Selection

Well-to-Wheel CO2WellWell--toto--Wheel COWheel CO22

Energy densityEnergy densityEnergy density

ResourceResourceResource

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Energy DensityToyota estimate

5

10

Vol

umet

ric e

nerg

y de

nsity

(Gas

olin

e=10

)

BatteriesBatteries GaseousGaseous

0

Hydrogen absorbing

alloy(2wt%)

High-pressure hydrogen(35MPa)

CNG(20Mpa)

Lithium-ionbattery

Ethanol

Petrol

Diesel

LiquidLiquid

High Density

Smaller Tank

Low Density

Larger Tank

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Well-to-Wheel CO2 Emissions

Japanese 10-15 test cycle

Well-to-Tank CO2 (WTT)Tank-to-Wheel CO2 (TTW)

Source: Mizuho Information & Research Institute report

Relative CO2 emissions indexed to gasoline as 1.0

-1 -0.5 0 0.5 1 1.5

PetrolDiesel

Gasoline Hybrid

FT synthetic diesel: coalFT synthetic diesel: biomass

Ethanol: sugar caneEthanol: corn

Electricity: coal

Fuel Cell or Electricity: nuclear

Fuel Cell : CNG

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Alternative fuels - Basic Characteristic

Bio-fuel

Hydrogen

Electricity

Energy density(Cruising distance)

Well to Wheel CO2 Emission Resource

better

worse

worse

better

depend on primary energy

depend on primary energy

better

better

worse

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Biofuels have supply volume limitationsBiofuels have supply volume limitations

Bioethanol is suited to low-concentration blends for the time being

Bio-diesel should be 2nd generation or low-concentration FAME

Use of Biofuels

Grass & wood(cellulose)

Corn(starch)

Sugarcane(sugar)

PalmRapeseed

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FCHV-BUS (Hino Motors, Ltd.)FCHV-BUS (Hino Motors, Ltd.)

TOYOTA-FCHVTOYOTA-FCHV

FCHV-F (Toyota Industries Corporation)FCHV-F (Toyota Industries Corporation)

Main unitMain unit

Hot water tankHot water tank

BusBus

Passenger carPassenger car

Fixed locationFixed locationResidential FCcogeneration system(Aisin Seiki Co. Ltd.)

Residential FCcogeneration system(Aisin Seiki Co. Ltd.)

MOVE FCV-K-Ⅱ(Daihatsu Motor Co., Ltd.)MOVE FCV-K-Ⅱ(Daihatsu Motor Co., Ltd.)

Toyota FC stackToyota FC stack

Industrial vehiclesIndustrial vehicles“Kei” mini-vehicle“Kei” mini-vehicle

Toyota’s Fuel Cell Technology

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Plug-in Hybrid Vehicle is:

or

MotorBattery

Household electrical energy

Engine

Fuel tank

Gas station

a hybrid ofelectric vehicle & petrol (diesel) vehicle

a hybrid ofa hybrid ofelectric vehicle & petrol (diesel) vehicleelectric vehicle & petrol (diesel) vehicle

a gasoline (diesel) hybrid vehiclewith an external recharger

a gasoline (diesel) hybrid vehiclea gasoline (diesel) hybrid vehiclewith an external rechargerwith an external recharger

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(1,000 units)(1,000 units)

(year)(year)1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 201X1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 201X

10001000

900900

800800

700700

600600

500500

400400

300300

200200

100100

★

Aiming to reach one million per year early in the 2010s decadeAiming to reach one million per year early in the 2010s decade

Yearly Sales of Hybrid Vehicles Worldwide

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Gasoline,Diesel

GaseousFuels ElectricityHydrogenSynthetic

FuelsBiofuels

the Right Place the Right Time

Hybrid Technology

the Right Car

Ultimate Eco-CarEnergy diversityEnergy diversity Air qualityAir qualityCOCO22 reductionreduction

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TODAY for TOMORROWTODAY for TOMORROW

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Thank you