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Development and Design

Toward the New Century of Automobiles, All FY2000 Goals Achieved

The major accomplishments in FY2000 in the development and design area include the achievement of FY2000 voluntary fuel efficiency targets through the development and introduction of new direct-injection engines and the adoption of other fuel efficiency improvement technologies, as well as the promotion of cleaner exhaust emissions. We also made major progress in the further evolution of hybrid vehicles, the expansion of hybrid vehicle series, and fuel cell vehicle development.

Development and Introduction of New Direct-injection (Gasoline and Diesel) Engines

Hiroyuki Watanabe Managing Director and Chairman of Environmental Product Design Assessment Committee Senior Managing Director since June 27, 2001

A direct-injection engine significantly improves fuel efficiency by directly injecting fuel into the cylinders, resulting in lean burn. In FY2000, Toyota developed two new types of direct-injection gasoline engines and one direct-injection diesel engine, and installed them in five vehicle series, some new and others that underwent redesign. In particular, the vehicles with direct-injection gasoline engines have, at the same time, achieved an exhaust emissions level that is 25% lower than the 2000 Exhaust Emissions Standard (qualifying them as good low-emission vehicles). s New Common-Rail Type Direct-injection Diesel Turbo Engine (Toyota D-4D)

Model 1KD-FTV (3.0L) Vehicle Series Fuel efficiency improvement ratio

(compared to the past)

s New Direct-injection Gasoline Engine (Toyota D-4)

Model 1AZ-FSE (2.0L) Vehicle Series Opa RAV4 Fuel efficiency improvement ratio

(compared to the past)

--------About 25% improved

Fuel efficiency has been significantly improved by the use of the D-4 system with a new stratified combustion concept which does not depend on air flow, further improvement in combustion efficiency, and expansion of the lean-burn area.

Hiroyuki Watanabe joined Toyota in 1967. He became a member of the board of directors in 1996 following various assignments, including that of Chief Engineer for the Crown, and later led efforts to develop electric vehicles. When he became Managing Director in June 1999, he was also appointed Chairman of the Environmental Product Design Assessment Committee. In addition, he has been overseeing Toyota's efforts to develop fuel cell systems.

Opa

Hilux Surf About 10% improved Land Cruiser Prado About 10% improved

Fuel efficiency has been improved by the use of four valves, a newly developed common-rail fuel injector that precisely controls high-pressure fuel injection, a variable-nozzle type turbo charger with an intercooler for continuously controlling supercharging pressure, a new combustion method, and the use of the UNIBUS*, etc. The vibration and noise unique to diesel engines have also been significantly reduced.

RAV4

Model 1JZ-FSE (2.5L) Vehicle Series Mark II Fuel efficiency improvement ratio

(compared to the past)

About 19% improved

Top fuel efficiency in its class has been achieved by using a new injector that widely disperses fuel spray, and by optimizing the fuel spray shape and the top-face shape for expanding the ultra lean-burn area.

Land Cruiser Prado Mark II

Hilux Surf

*UNIBUS (Uniform Bulky Combustion System): Technology that enables rapid combustion at low temperatures, by dividing fuel injection into a diesel engine into two stages, first creating a preliminary air-fuel mixture and then delaying the injection timing for the remaining fuel

20

Development and Design

Environmental Report 2001

First Toyota Vehicle Using Continuously Variable Transmission (CVT)

Toyota introduced CVT, which continuously shifts gear ratio, into the new Opa for the first time. Toyota CVT has a wide range of transmission gear ratios and uses a torque converter that can be locked up at low vehicle speeds. In addition, through precise transmission control, CVT enables fuel efficiency improvement and a transmission gear ratio that is optimal for engine torque. Furthermore, the Opa has achieved top level fuel efficiency in its class through integrated control of the CVT and a direct-injection gasoline engine.

Evolution and Expansion of Hybrid Systems

Following the introduction of the Prius, a compact 1.5-liter gasoline engine hybrid car, Toyota developed and introduced in June 2001 the Estima Hybrid, a new hybrid vehicle based on a 2.4-liter gasoline engine. The Estima Hybrid uses the Toyota Hybrid Sytem-CVT (THS-C), which adds a new CVT to a gasoline engine and a motor. It combines THS-C with the world's first electric 4-wheel drive system called "E-Four," which drives the rear wheels using an electric motor. As a result, the Estima Hybrid has achieved fuel efficiency that is more than twice the new 2010 fuel efficiency standard for its class. It has also achieved an exhaust emission level that is 75% lower than the 2000 Exhaust Emissions Standard in the Ministry of Land, Infrastructure and Transport's "Approval System for LowEmission Vehicles,"* qualifying as an ultra low-emission vehicle. Toyota also developed the THS-M (Toyota Hybrid System-Mild) which can be used in various vehicle types. This system improves fuel efficiency by approximately 15% and reduces total exhaust emissions. The first vehicle to use this THS-M is scheduled for introduction in autumn of 2001.

See pp. 72 - 77

Accelerating the Development of Fuel Cell Hybrid Vehicles

In March 2001, Toyota entered a new fuel cell hybrid vehicle called "FCHV-3" in the International Symposium on Fuel Cell Vehicles sponsored by the Ministry of Land, Infrastructure and Transport. FCHV-3 is based on the Kluger V vehicle body and uses hydrogen stored in a hydrogen-absorbing alloy tank. FCHV-3 achieves higher energy use efficiency, using a high-performance fuel cell stack with an improved output of 90kW, along with Toyota's unique hybrid technology that employs a secondary battery. As a result, FCHV-3 has achieved a maximum speed of more than 150km/h and a cruising range of at least 300km with a single refueling of hydrogen. Furthermore, in June 2001, Toyota developed the FCHV-4 fitted with a high-pressure hydrogen tank. Toyota obtained certification from the Ministry of Land, Infrastructure and Transport, and has begun a three-year field evaluation test. Also in June 2001, Toyota developed a large commercial transport bus, FCHV-BUS1, which uses highpressure hydrogen as fuel, jointly with Hino Motors, Ltd., and is planning to proceed with further development toward a field evaluation test.

CVT development staff Michitaka Kakumu (left), Tadashi Tamura (middle), and Yoshinobu Soga (right) of Drive Train Engineering Div. 2, Continuously Variable Transmission Engineering Dept.

New minivan HV "Estima Hybrid" which is installed with THS-C

New fuel cell hybrid vehicle "FCHV-4"

*Ministry of Land, Infrastructure and Transport's "Approval System for Low-Emission Vehicles" : Same level exhaust emissions standard as the Ministry of the Environment's "Exhaust Emissions Technology Guidelines for Low-Emission Vehicles"

21

Results of Continuous Improvement Efforts Based on Product Environmental Management System (EMS)

In FY2000, Toyota again took actions toward the goals in EMS areas 1 through 6 listed in the table to the right and made steady progress through the appropriate application of the EMS which is based on ISO 14001. This section reports the results of continuous improvement efforts in areas 1 through 4. Although some improvements in procedures and documentation expressions were recommended by an internal audit, it identified no major problems. In March 2001, the first renewal audit following certification was carried out, and an external auditing body confirmed that Toyota is appropriately applying and maintaining the EMS. Establishment of a clearer procedure for external communication was one of the items suggested for monitoring. Toyota plans to improve the EMS further by accurately incorporating these recommendations.

Areas Subjected to EMS and Goals for FY2000

Subject area FY2000 goal

In consideration of government objectives for passenger car fuel consumption in FY2000 (old version), establish even stricter voluntary standards and achieve fuel efficiency at the top level in each vehicle class by that year Establish voluntary standards stricter than exhaust emissions standards set by law and achieve them on all vehicles. At the same time, Toyota is taking action to comply with the year 2000 restrictions for designated vehicles (gasoline passenger cars) before they go into effect and is responding to the low-emissions vehicle certification system Establish voluntary standards to ensure compliance with external vehicle noise standards set by law and achieve them on all vehicles 1. Achieve by the end of 2001: Passenger cars 2. Achieve by the end of 2002: Trucks Establish voluntary standards for conserving use of substitute refrigerant (HFC134a) and achieve those standards on new mass-production models and models that undergo complete redesign by 2000 Reduce the amount of lead used in new mass-production models and models that undergo complete redesign by 2000, to 1/2 or less than 1/2 of the automobile industry's 1996 level, by aiming to achieve 1/3 that level. Prohibit the use of mercury except in dischange tubes. Reduce usage of cadmium and arsenic below present levels Steadily improve vehicle recoverability and achieve 95% recoverability by 2005

1 2

Improving fuel efficiency Reducing exhaust emissions Reducing external automobile noise Using less refrigerant in air conditioners Reducing substances of environmental concern Improving recoverability

3

4

5 6

*Regarding recoverability rate, Toyota has established its own standards and is making efforts to improve recoverability *For details on (5) reducing substances of environmental concern and (6) improving recoverability please see "Recycling and Sales/After Sales" on pp. 46 - 51

Internal Audit Results

Serious non-compliance Minor non-compliance Recommended improvements

Renewal Audit Results

0 0

Serious non-compliance Minor non-compliance Items to be monitored

0 0 3

19

1 Efficiency

Improving Fuel

The Government Targets for Average Fuel Efficiency in FY2000 (old version) are:

Category 1 Category 2 Category 3 <875kg>: 18.2km/L <1,000 - 1,500kg>: 13.0km/L <1,750kg ->: 9.1km/L

FY2000 Goals Achieved

Taking into consideration the government targets (old version) in the "FY2000 goals of average fuel efficiency for gasoline-powered passenger cars by equivalent inertial weight* category," Toyota set its own voluntary goals in its Second Toyota Environmental Action Plan and worked to improve fuel efficiency within its medium to long-term plans through FY2000. As a result, Toyota achieved fuel efficiency improvement that exceeds the government targets (old version) in all categories.

Average Fuel Efficiency Trends by Category

Vehicle Weight Class Category Category 1 < 875kg > Category 2 < 1,000 - 1,500 kg > Category 3 < 1,750kg - >

(km/L)

23.0 22.0 21.0 20.0 19.0 17.6 18.0 17.0 16.0 15.0 14.0 13.0 12.3 12.0 11.0 10.0 9.0 8.5 8.0 7.0 '90

22.3

21.0 21.4 20.3 17.4 17.0 17.4 17.7 17.6 21.4

FY2000 (Goal) 18.2

12.5

12.2

12.0

12.1

12.3

12.1

12.8

13.1

13.9

14.5 13.0

8.4

8.2

8.0

7.9

8.0

8.1

8.5

8.5

9.0

9.4

9.1

*Equivalent inertial weight: The mass of the test vehicle to be approved when conducting emissions and fuel efficiency testing

'91

'92

'93

'94

'95

'96

'97

'98

'99

'00 (FY)

1. The sharp increase in fuel efficiency between FY1996 and FY1997 for Category 1 vehicles is mainly due to the exclusion of AT vehicles, leaving only MT vehicles in this category 2. Although AT vehicles (Vitz) were added to Category 1 again in FY1998, the average fuel efficiency improved

22

Development and Design

Environmental Report 2001

Fuel Efficiency Comparison between Selected Old and New Models (automatic transmission vehicles)

(km/L) 15

14 13 12

Increasing the Number of Vehicles with Newly Developed Engines

Toyota developed the new AZ and NZ series gasoline engines with improved fuel efficiency achieved by making efforts from various angles, including material changes resulting in weight reduction and downsizing, combustion efficiency improvement, and intake and exhaust system optimization. Progress was also made in developing new direct-injection gasoline engines. In FY2000, Toyota achieved its fuel efficiency improvement goals by expanding the use of the newly developed engines and by installing VVT-i1 in the engines of all new models and those undergoing complete redesign. Major Newly Developed Engines

FY

'98

Incorporating the Super ECT in All of the New Models

Toyota incorporated the Super ECT2, which increases the efficiency of transmission and contributes to improving fuel efficiency with its Flex lock-up system 3 and highly efficient torque converter4, into all new models and those undergoing complete redesigns. Toyota also incorporated CVT into the Opa, and electric power steering into the Corolla. The V Flex-time 4WD5, a technology for 4wheel drive vehicles, was incorporated into the Opa and Corolla.

Old model

New model

14.0 12.6 11.2

11 10 9 8 7 6 5

10.6 10.2 9.3 9.5

10.4

Mark II

RAV4

Land Cruiser Prado

Hilux Surf

Lighter Weight and Lower Air Resistance

Toyota worked on reducing the air resistance of its vehicles by making the floor panels flatter and using rectifying parts. As a result, the Cd (Coefficient of drag) value for the Corolla and Mark II were reduced to 0.29, and that for the Celsior, to 0.25. In terms of vehicle weight reduction, Toyota reduced the weight of the Corolla by 20kg even with a cabin space one size larger than before, using a new engine and reducing the transmission weight. How to counter the weight increases caused by the incorporation of more safety devices is an issue involving all vehicles.

Toward Achieving the New Fuel Efficiency Standards (Government Targets)

The FY2000 Government Targets (old version) became null and void when the Law concerning the Rational Use of Energy was revised in 1999, and the New 2010 GasolinePowered Vehicle Fuel Efficiency Standards were established (the target year for dieselpowered vehicles is 2005). While working on meeting the FY2000 targets, Toyota began taking actions to meet the new revised standards. Toyota is implementing measures, beginning with new models and models undergoing complete redesign, with the goal of achieving the targets ahead of schedule. In FY2000, 34% of the vehicles Toyota produced met the New 2010 Gasoline-Powered Vehicle Fuel Efficiency Standards. Vehicle Series that Met the 2010 GasolinePowered Vehicle Fuel Efficiency Standards (FY2000 new models and models that underwent complete redesign)

Fuel efficiency Category standard (Vehicle weight kg) (km/L) Vehicle series

Models

1ZZ-FE 1SZ-FE 2NZ-FE

Displacement (unit: liter)

Vehicle series

Vista Vitz Vitz, Platz, FunCargo, bB, WiLL Vi Platz, bB, FunCargo Celica Estima Crown Corolla Corolla Opa, RAV4, Corolla Corolla Opa, RAV4, Kluger V Mark II Celsior

1.8 1.0 1.3

'99

1NZ-FE 2ZZ-GE 2AZ-FE 2JZ-FSE 2NZ-FE 1NZ-FE 1ZZ-FE

1.5 1.8 2.4 3.0 1.3 1.5 1.8 1.8 2.0 2.4 2.5 4.3

'00

2ZZ-GE 1AZ-FSE 2AZ-FE 1JZ-FSE 3UZ-FE

703 -

827

18.8 17.9 16.0 13.0 10.5 8.9 7.8 6.4

Corolla Corolla Opa Mark II Opa RAV4 Kluger V

3. Flex lock-up system: An automatic transmission device, which uses mechanical force and hydraulic pressure to choose the proper power transmission allocation in accordance with driving conditions. At slower speeds, in particular, it improves fuel efficiency by increasing transmission efficiency 1. VVT-i (Variable Valve Timing-intelligent): Mechanism that continuously optimizes intake valve opening/closing timing based on the engine's operational condition, thus significantly improving fuel efficiency and resulting in cleaner exhaust emissions 2. ECT: Electronic Controlled Transmission 4. Torque converter: Using fluid to convey power, it has the function of amplifying torque, or the engine's rotational power 5. V Flex-time 4WD: Electronically-controlled 4WD mechanism that improves fuel efficiency by optimally allocating torque between the front and rear wheels in accordance with driving conditions

828 - 1,015 1,016 - 1,255 1,256 - 1,515 1,516 - 1,765 1,766 - 2,015 2,016 - 2,265 2,266 -

*Some of the qualifying vehicle series may not meet the standards depending on models and specification

23

2 Emissions

Reducing Exhaust

Vehicles Meeting the FY2000 "Approval System for Low-Emission Vehicles" (Gasoline passenger cars, light weight freight vehicles)

(Exhaust emission level: good low-emission level gasoline vehicle1) 16 vehicle series, 48 models

Vehicle series No. of models Vehicle series No. of models

Sixty-seven Toyota Models Certified as Low-pollution Vehicles

In FY2000, Toyota again submitted its vehicles to the low-pollution vehicle designation system administered by seven Tokyo area municipalities, and had 67 more of its models certified, reaching a cumulative total of 188 models. Toyota also submits its vehicles to the low-pollution vehicle designation system administered by six Kyoto, Osaka, and Kobe area municipalities. Trend in Number of Vehicles Approved as Low-Pollution Vehicles

(Number of models)

Increased Introduction of Low-emission Vehicles

Toyota completed its voluntary compliance with the FY2000 Exhaust Emission Standards for gasoline vehicles, and has been actively working on the early introduction of vehicles that comply with the Ministry of Land, Infrastructure and Transport's "Approval System for LowEmission Vehicles." As a result, the number of models achieving an exhaust emission level that is 25% lower than the 2000 Exhaust Emission Standards increased to 74 (44% of the vehicles Toyota produced), and the number of models achieving an exhaust emission level that is 75% lower than the standards increased to 3 models (3% of the vehicles Toyota produced). The main technologies that helped reduce exhaust emissions include the use of (1) VVT-i, (2) a rearward exhaust layout1, (3) a stainless steel exhaust manifold2, (4) a thin-wall ceramic catalytic converter, and (5) a fuel atomizing injector3. Furthermore, the exhaust emissions from direct-injection gasoline engines were more effectively reduced using new engines and by improving the performance of the NOx storage reduction three-way catalytic converter. Trend in the Number of Gasoline Vehicle Models Achieving Year 2000 Emission Standards

90 80

bB RAV4 Aristo Altezza Vitz Opa Corolla2 Crown

2 4 1 1 2 3 14 1

Kluger V Century Harrier Vista FunCargo Platz Pronard Mark II

4 1 4 2 2 2 1 4

1. 25% lower HC and NOx than the 2000 regulation 2. Corolla includes Fielder, Runx/Allex, Sprinter, Corolla Van

(Exhaust emission level: ultra low-emission level gasoline vehicle)* 2 vehicle series, 3 models

Vehicle series No. of models Vehicle series No. of models

200

Buses and trucks Passenger cars Electric vehicles Cumulative total

150

Celsior

2

Prius

1

Disqualification due to tighter standards (March 2000) Eighth (November 1998) Ninth (March 1999) Tenth (July 1999) Eleventh (November 1999) Twelfth (March 2000)

*75% lower HC and NOx than the 2000 regulation

100

Cleaner Diesel Engines

In FY1999, Toyota achieved the 1997 and 1998 Exhaust Emission Standards for diesel vehicles. The diesel vehicles launched in FY2000 ­ Hilux Surf, Land Cruiser Prado, and Corolla ­ of course meet these 1997 and 1998 Exhaust Emission Standards. In FY2000, as part of new efforts to create a new generation of diesel vehicles, Toyota developed the basic technologies for the DPNR4, a new catalytic converter system for diesel vehicles. The DPNR is a new technology that combines the NOx storage reduction three-way catalytic converter for gasoline-powered vehicles with a newly developed porous ceramic filter, and can initially reduce NOx and PM5 by 80% from the current regulation levels. However, because the DPNR requires the sulfur content in diesel fuel to be 50ppm or lower, Toyota is proceeding with a goal of commercializing it in 2003 when low-sulfur diesel fuel is scheduled to become available.

50

-50

-100

*For details on the low-pollution vehicle designation system of the seven Tokyo area municipalities, please see p. 33 of Environmental Report 1998 1. Rearward exhaust layout: Since a catalytic converter works more efficiently at high exhaust temperatures, the exhaust pipe of an inline engine is placed in the rear, close to the catalytic converter 2. Stainless steel exhaust manifold: Has a small thermal capacity and therefore quickly raises the exhaust temperature 3. Fuel atomizing injector: Device for atomizing fuel spray 4. DPNR (Diesel Particulate-NOx Reduction System): Catalytic converter system that continuously removes NOx and PM from diesel exhaust emissions simultaneously 5. PM (Particulate Matter): Granular material consisting mainly of fly ash and unburned hydrocarbon

Number of models

70 60 50 40 30 20 10 0

Total number of models achieving year 2000 emission standards

'97 '98 '00 '01 '99 (Year) Standard levels for 2000 25% lower than standard levels for 2000 75% lower than standard levels for 2000

24

Fourteenth (November 2000)

Fifteenth (March 2001)

Thirteenth (July 2000)

0

Development and Design

Environmental Report 2001

3

Reducing External Automobile Noise

Example of Measures to Reduce Noise Pollution

Hood silencer Dashboard silencer Apron seal

Toyota has worked on continuous improvements to attain the goal of meeting its voluntary standards on external automobile noise in all its vehicles. In FY2000, 17 passenger car series and 1 truck series (for a total of 18 vehicles series) met the standards. As a result, all of Toyota's passenger cars satisfied the voluntary standards in FY2000. Major noise reduction measures include oil pan cover and engine undercover for soundproofing, for example. Toyota also reduced combustion noise and vibration in some of the diesel vehicles by installing common-rail direct-injection engines. Intake system noise has been reduced using an intake resonator, and exhaust noise has been reduced by expanding the capacity of the submuffler, to reduce external automobile noise.

Intake resonator

Capacity expansion of submuffler

Common-rail type fuel injection High rigidity cylinder block Oil pan cover Rubber insulator

Engine undercover (with sound-absorbent material) Transmission undercover (with sound-absorbent material)

[ Example of Noise Reduction Measures on the Hilux Surf ]

External Noise Reduction Goal Achievement in Passenger Cars

100

Goal

100%

Achievement*

(%)

80 60 40 20

4

Reducing Airconditioner Refrigerants

0 '97 '98 '99

'00

(FY)

Toyota worked on reducing the amount of HFC134a, used in air conditioners as a refrigerant, in FY2000 new models and those that underwent complete redesign. Toyota thus exceeded its goal and achieved an average 20% reduction. All of Toyota's action plans regarding air conditioner refrigerant reduction were completed on schedule in FY2000. From now on, Toyota will work towards developing new air conditioners for vehicles, such as those using a CO 2 refrigerant with less environmental impact.

For details on the system for collecting and destroying HFC134a, see "Recycling and Sales/After Sales" on p. 51

*Achievement refers to the number of passenger car series, within all series (46 vehicle series), that meet stricter regulations FY2000 break down of the 18 vehicle series Newly adopted: Estima, Land Cruiser 100, Liteace, Townace Noah (3 passenger car series), Corolla Van (1 truck series) Readopted due to change in specification and to additional new vehicle series: Celsior, Aristo, Mark II, Harrier, Kluger V, Opa, bB, WiLL Vi, Corolla, Prius, Pronard, RAV4, Hilux Surf, Land Cruiser Prado (14 passenger car series)

Trends in Acceleration Noise of Passenger Cars

140

No. of models in 1995

No. of models in 2000

Number of models*

120 100 80 60 40 20 0 72 73 74

75

Voluntary target figure

76

Regulation figure

*Number of models: The total of combination of engine and transmission by vehicle series

77 (dB-A) Acceleration Noise Level

*Please see "Recycling and Sales/After Sales" on pp. 46 - 51 for details on (5) Reducing substances of environmental concern and (6) Improving recoverability

25

Promotion of Clean-energy Vehicles

Cooperation with GM and Exxon Mobile on Development of Fuel for Fuel Cell Vehicles

Toyota, GM, and Exxon Mobile reached an agreement on the selection of fuel for fuel cell vehicles. Although hydrogen is the most promising fuel for substantially improving vehicle efficiency and cleaning vehicle emissions, it will be some time before hydrogen can be widely used because of the necessity of establishing new infrastructures. Therefore, for short to medium-term fuel needs, the three companies decided to jointly develop Clean Hydrocarbon Fuel (CHF), which possesses characteristics similar to those of gasoline. CHF has the following characteristics: (1) The existing fuel supply infrastructure can be used, and CHF can also be used in conventional internal combustion engines (2) From extraction to use in powering a vehicle, CHF offers high energy efficiency (3) CHF burns cleanly In order to solve the various issues facing the realization of fuel cell vehicles, Toyota plans to take a global approach in cooperation with other automakers, automobile parts suppliers, and energy companies.

New Prius Launched in Europe and North America

With a new compact nickel-metal hydride battery and other improvements, the new Prius offers even better fuel efficiency, acceleration performance, and practicality than the previous model. In 2000, following its launch in Japan, the new Prius was introduced in North America in July, and Europe in September. Noting its low environmental impact and excellent performance, the Prius received positive evaluations overseas also. Sales in Europe and North America have been expanding smoothly, with about 11,600 units sold by the end of March 2001. As a result, the cumulative total sales for Japan and overseas combined exceeded 60,000 units.

See pp. 72 - 77

Number of Toyota's Clean-energy Vehicles Sold (in Japan) <Unit: Vehicles>

FY1998 FY1999 FY2000 Electric vehicles Hybrid vehicles CNG vehicles Subtotal

Percentage relative to all Toyota vehicles sold in Japan

93 18,558 110 18,761 1.1%

46 14,289 178 14,513 0.9%

19 12,263 166 12,448 0.7% 1,767,422

Total number of Toyota 1,678,668 1,674,631 vehicles sold

Total Market Share (in Japan)

<Unit: Vehicles>

FY1998 FY1999 FY2000 Electric vehicles Hybrid vehicles CNG vehicles Subtotal

Percentage relative to all vehicles sold in Japan Total number of vehicles sold in Japan

250 18,600 1,400 20,250 0.3%

220 15,100 1,600 16,920 0.3%

130 13,300 2,500 15,930 0.3%

5,866,782 5,881,991 5,973,438

New CNG Engines Installed in Dyna and Toyoace

Toyota incorporated new compressed natural gas (CNG) engines in the Dyna and Toyoace, small cabover trucks, and began selling them in Japan in October. The new trucks with CNG (4.1liter) engines emit substantially smaller volumes of CO, HC, and NOx than diesel-powered vehicles. At the same time, these trucks maintain excellent driving performance.

*Total of clean-energy vehicles: Partly estimated by Toyota *All Toyota vehicles sold in Japan and total number of vehicles sold in Japan: Based on surveys by Japan Automobile Dealers Association and Japan Minivehicles Associations

Introduction of Clean-energy Vehicles into Company Fleet

In response to a Cabinet resolution adopted by the Japanese Government for the promotion of clean-energy vehicles, Toyota has been introducing clean-energy vehicles into its own fleet of vehicles. Toyota has since set a goal of making at least 15% of its fleet cleanenergy vehicles, and has added 29 more vehicles in 2000, reaching an 18% introduction rate. Trends in Introduction Rate of Clean-energy Vehicles

FY1998

Number of vehicles owned Introduction rate

Number of Clean-energy Vehicles Sold in FY2000

In FY2000, Toyota sold about 12,000 clean-energy vehicles in Japan, which accounted for 0.7% of all Toyota vehicles sold in Japan.

FY1999 302 16%

FY2000 331 18%

252 14%

*Please see "ITS" on p. 63, for further information the EV Commuter System

26

Development and Design

Environmental Report 2001

Environmental Data for FY2000 Japanese New Models and Redesigns (Passenger Cars)

Name Vehicle model Engine Transmission Start of sales Ozone depleting material Greenhouse gases CFC 12 [air conditioning refrigerant]

Amount of HFC134a as air conditioning refrigerant (g) CO2 (g/km) [10-15 Japanese test cycle] 10-15 Japanese test cycle (Figure reviewed by Ministry of Land, Infrastructure and Transport)

Pronard

TA-MCX20 1MZ-FE 4AT April 2000 Not used 620 231 10.2

RAV4

TA-ACA20W 1AZ-FSE 4AT May 2000 Not used 550 168 14.0

Opa

TA-ACT10 1AZ-FSE CVT May 2000 Not used 500 133 17.8

Corolla

TA-NZE121 1NZ-FE 4AT August 2000 Not used 530 142 16.6

Celsior

UA-UCF30 3UZ-FE 5AT August 2000 Not used 650 (900) 288 8.2

1

Mark II

TA-JZX110 1JZ-FSE 4AT

Kluger V

TA-ACU20W 2AZ-FE 4AT

Specifications

October 2000 November 2000 Not used 550 187 12.6 Not used 650 223 10.6

Major measures to improve fuel efficiency

In-cylinder direct injection VVT-i (Variable Valve Timing) ECT (Torque converter with lockup mechanism) CVT (Continuous Variable Transmission) Electric power steering

Fuel efficiency (km/L)

External vehicle noise (acceleration noise) (dB-A) Exhaust emissions2

Adapted regulation figures Other figures Good low-emissions level Ultra low-emissions level

Lead (compared to the 1996 figure)

76 75

76 74

76 74

76 75

76 75

76 75

76 75

Used (1/3 or less) Extremely small amount Extremely small amount

Used (1/3 or less) Extremely small amount Extremely small amount

Used (1/3 or less) Extremely small amount Extremely small amount

Used (1/3 or less) Extremely small amount Extremely small amount

Used (1/6 or less) Extremely small amount Extremely small amount

Used (1/3 or less) Extremely small amount Extremely small amount

Used (1/3 or less) Extremely small amount Extremely small amount

Substances of environmental concern used in parts

Mercury (discharge tubes for lightings) Cadmium (electronic control parts)

Sodium Azide Parts using easy-torecycle materials (TSOP)

Not used

Bumpers and interior/ exterior parts

Not used

Bumpers and interior/ exterior parts

Not used

Bumpers and interior parts

Not used

Bumpers and interior parts

Not used

Bumpers and interior/ exterior parts

Not used

Bumpers and interior parts

Not used

Bumpers and interior parts

Recycling3

Natural material

Sound-proofing materials made of recycled shredder dust (RSPP) Using Recycled PP

Door trimming and Packaging tray trimming base material package tray base material

*Basically, the data above relates to the best-selling grade 1. The figures in parentheses are applicable if there is a rear air conditioner 2. Level of emission gases from passenger cars (see the list below) 3. Please see "Recycling and Sales/After Sales" on pp. 48 - 51 for details. In FY2000 too, copper sorted from shredder residue was recycled as a strengthening material for aluminum casting

Level of emission gases from passenger cars

(10-15 Japanese test cycle) Carbon Monoxide (g/km) Hydrocarbon (g/km) Nitrogen Oxide (g/km) 2000 regulation Good lowemissions level Ultra lowemissions level

0.67 0.08 0.08

0.67 0.06 0.06

0.67 0.02 0.02

27

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