Toyota Motor announced a major leadership change, confirming Chief Executive Officer Koji Sato will step down and be replaced by Chief Financial Officer Kenta Kon from April 1.
The move marks Toyota’s second CEO transition in three years, reflecting the automaker’s efforts to adapt quickly amid rapid industry transformation.
Sato will assume the roles of vice chairman and chief industry officer, allowing him to focus on broader automotive and policy-related responsibilities.
“Under this new leadership structure, Sato will focus on the broader industry, including Toyota, as Vice Chairman and CIO, while Kon will focus on internal company management as President and CEO,” Toyota said.
Kon described the shift as Sato becoming “captain of the national team,” while he takes on the role of “club captain” overseeing daily operations.
Board Changes And Expanded Responsibilities
Sato said the restructuring would allow him to dedicate more time to his positions as chairman of the Japan Automobile Manufacturers Association and vice chair of Keidanren.
He became CEO in 2023 after succeeding Akio Toyoda, whose long tenure defined Toyota’s global expansion and brand identity.
Executive Vice President Yoichi Miyazaki will step into the CFO role, while further board changes are scheduled for June 2026.
Under the plan, Kon will join Toyota’s board as a director, while Sato will step down from the board entirely.
Financial Performance And Market Reaction
Toyota reported December-quarter revenue of 13.46 trillion yen, representing an 8.6% increase from the same period a year earlier.
The result exceeded analyst expectations by roughly 10%, according to LSEG SmartEstimates weighted toward historically accurate forecasts.
Operating income declined 2% to 1.19 trillion yen, reflecting continued pressure from U.S. tariffs on imported vehicles and components.
Despite that decline, the figure still exceeded the market’s average estimate, helping lift Toyota shares by 1.5% following the announcement.
Electrification Drives Future Strategy
Toyota continues to expand its electrification push, with hybrid and electric vehicles accounting for nearly half of retail sales during the first three fiscal quarters.
Demand was particularly strong for hybrids in North America and China, reinforcing Toyota’s multi-pathway approach to decarbonization.
The company raised its full-year operating profit forecast by 11.8%, citing currency benefits and cost reductions offsetting tariff-related pressures.
