This research report analyzes the economics of Toyota's automobile industry between 2012-2022. The company was founded in Japan in 1937 and became one of the largest companies in the world in 2020. Toyota has been reliable in the automobile industry. Being one of the top contenders in the market. The main topics for the automobile industry are the products produced, consumer demand, and the elasticity of the company. Production determines the type of population that is the intended target market. Consumer demand determines the range of the population that is attracted to the product and its preferences. Elasticity determines the measurement of the responsiveness of the consumer along with company modifications. Toyota is well known for their vehicles being great at fuel saving including hybrid vehicles and electric.

Toyota produces vehicles, engines, air conditioning systems, car electronics, and material handling. Vehicles that are produced by automobile companies tend to be Tacoma, 4Runner, RAV4, Camry, and many more. In 2021, the RAV4 generated one of the best sales records for Toyota, with five of their cars ranking in the top-selling vehicles. The market in the past two years has been influenced mainly by off-road trucks to electric vehicles in the city with both being fuel efficient. According to product sales analysis, RAV4 was the best-selling product in 2022. Delivering a sale of 399,941 items, however, a decrease in sales by 1.9% compared to previous sales such as 2012. Electrical vehicles have been one of the major developments for the company since capital was 254 billion and demand keeps on rising. Generating more Ev cars consumers have been influenced more by the company. Toyota Industry Incorporation describes its air conditioning system as the compressor running half the time creating less energy usage which also required less fuel. Leading to the production implementation of more developments of the compressor to generate higher revenue. The New Economics of Semiconductor car electronics has been applied for chip making related to Moore's Law which implies that the costs taken from capital support will support the cycles of investment since every two years the integrated circuit will double. Also, products such as Combustion, electric lift trucks, and conveying equipment have been implemented into other industries generating a higher sales value. From construction to agricultural companies, the sales revenue for the automobile industry is moving forward into more consumer variations.

During Sales analysis provided by Toyota Motor Corporation Statista helps determine the range of products being bought by the consumer. Consumers tend to be between a range 30 to 50-year bracket but it varies between the type of vehicle. In 2013 there was a 2.1% increment in revenue due to consumer increment in automobile purchases after the recession. Expectations for the consumer tend to change depending on the demand or popularity of a certain vehicle or item. Toyota consumers prefer the company due to its durability of the vehicle, and sales price which do not devalue as fast as others when the vehicle is out of the lot. The income of consumers influences more on sales since the majority of the consumers have a middle income. In 2013 low income increased which generated more sales for the company. The consumer tends to have expectations for what is required from the company. This is why requirements become a priority such as safety and fuel efficiency. In the article created by a Harvard Student, it demonstrates that yes Toyota vehicles are pricier than most however the investment that is done upfront pays off due to fuel efficiency. The price of goods is one of the determinants that affect consumers with Toyota which is why expectations are higher. Toyota generates buffers, relocations, and changes in demand safety factors and shows the customer when to expect every item. Generating an expectation from Toyota to apply to the demand.

Toyota demonstrates elasticity in its pricing strategy, meaning that the company analyzes the impact of price changes on its sales. For example, when gas prices increased in 2020, Toyota saw an increase in sales of small and fuel-efficient vehicles, even though their prices were comparatively lower. Despite competition from other automakers like Honda, GM, and Volkswagen, Toyota's sales revenues remain strong due to their performance in the free market. For Toyota, if the elasticity of demand for their vehicles is high, it means that a small price change will lead to a relatively larger change in demand. This suggests that consumers are quite sensitive to price changes and will adjust their purchasing decisions accordingly. On the other hand, if the elasticity of demand for Toyota vehicles is low, it means that demand is not very sensitive to price changes, and consumers are less likely to change their purchasing behavior in response to price fluctuations. Understanding the elasticity of demand for Toyota vehicles is crucial for pricing and production decisions. According to the articleSSRN between 2014-15 and 2016-17, the small cars are treated as less inferior, and the large cars are treated as less luxurious. It helps Toyota determine the optimal pricing strategy, assess the impact of price changes on revenue, and make informed decisions about production levels.

In conclusion, research has shown that Toyota is one of the top sellers in the automobile market. They have a strong presence with multiple vehicles ranking in the top-selling lists. The product production of Toyota keeps on increasing in variety. The consumer range has been wider than before, and population targets are changing and increasing. Consumers will keep on focusing on prices, expectations, income, and quality. Toyota uses elasticity to set its vehicle prices, finding a balance between low prices and maintaining a profitable margin. They also invest heavily in research and development to bring innovative technologies to the market, such as driverless automobiles and electric vehicles.

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