Toyota estimates factory automation could cost $6.4 billion per year from 2028

TOKYO, Sept 18 — Toyota Motor estimates it could cost 1 trillion ​yen ($6.4 billion) annually from 2028 to modernise its factories as the world's biggest carmaker accelerates automation and ‌robotics deployment.

Across the industry, automakers are turning to robotics to cut costs ⁠and address ageing infrastructure ​and labour shortages, a strategy ⁠that analysts say could open a growth avenue beyond ‌vehicle manufacturing.

The investment ‌estimate covers Toyota, group companies and major suppliers. ⁠Without specifying whether it would ⁠definitely take place or for how many years it would continue, the company told investors around 400,000 robots would be needed to drive factory automation at those firms.

The figure includes replacements for existing machines and ‌new installations and humanoid and non-humanoid ​robots.

The potential investment, discussed with investors earlier this month, is tied to factory automation spanning industrial robots, automated logistics and future human-robot collaboration on the factory floor.

Analysts at Bernstein in a note on Friday said Toyota's growing focus on robotics could increase investor appreciation ​of the potential for growth beyond automobiles.

"We expect robotics-related ‌announcements to become ‌more ⁠frequent going forward as Toyota accelerates its robotics efforts," they wrote.

Other global automakers are seeking to increase the use of humanoid robots. Hyundai, which owns humanoid robot maker Boston ‌Dynamics, has said it ​plans to deploy humanoid robots ‌at its US ⁠plant in ​Georgia from 2028.

($1 = 157.1800 yen)

(Reporting by Daniel Leussink; editing by ​Barbara Lewis)

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