Toyota and Toyota Connected: A Case Study of Evolution in Connected Cars
Executive Overview: Pioneering Connected Car Technologies and Sustainable Mobility at Toyota
By Carsten Krause, April 22nd, 2024
This case study explores Toyota’s strategic advancements in the domains of connected cars, electric vehicles, and autonomous driving technologies. By leveraging insights from an exclusive podcast interview with Brian Kursar, CTO of Toyota North America and Toyota Connected, alongside comprehensive industry research, this analysis highlights Toyota’s role as an innovator and leader in the evolving automotive landscape.
According to Brian Kursar “Toyota is such a great company to work for, fostering a culture where innovation thrives.”
Toyota’s commitment to these advanced technologies is driven by a vision to enhance vehicle functionality, user experience, and environmental sustainability. The company’s efforts in connected car technologies focus on improving safety, efficiency, and the overall driving experience through advanced data analytics, artificial intelligence, and user-centric design. Additionally, Toyota is actively expanding its electric vehicle offerings and cautiously developing autonomous driving capabilities, reflecting its strategy to meet diverse global market needs and regulatory requirements.
This case study provides a detailed comparison of Toyota’s initiatives with those of other major players in the industry, illustrating how the company is positioning itself at the forefront of automotive technology innovations. It also delves into the challenges Toyota faces, such as data privacy, integration costs, and regulatory compliance, and discusses future directions including increased connectivity solutions, electrification, and global expansion strategies.
The insights presented here aim to provide executives and industry analysts with a thorough understanding of Toyota’s strategic approach to connected and autonomous vehicle technologies, underpinning the company’s commitment to leading the future of mobility.
Background and Development
Brian Kursar’s journey with Toyota began in the early 2000s as an automation expert, focusing initially on vehicle supply chain systems. His career trajectory reflects a deepening engagement with data and enterprise architecture, leading to his pivotal role in the formation of Toyota Connected. This subsidiary was established to leverage data-driven insights to enhance vehicle connectivity and user experiences.
Kursar recounts, “I started off many years ago as an automation expert for a migration project at Toyota… It was super exciting to be part of moving systems to the web and embracing new technologies like VB6 at that time.”
Connected Car Innovations at Toyota
Toyota’s commitment to innovation in connected car technologies reflects its strategic focus on integrating cutting-edge advancements to enhance the driving experience. These initiatives are not just about improving vehicle functionality but also ensuring that Toyota vehicles remain at the forefront of the automotive industry. Here are several key areas of connected car innovations at Toyota:
Advanced Safety Features
1. Vehicle-to-Everything (V2X) Communication: Toyota is pioneering efforts in V2X communications, which allow Toyota vehicles to interact with their surroundings. This technology enhances road safety by enabling cars to receive and send information about road conditions, traffic signals, and the presence of pedestrians or other vehicles, potentially preventing accidents.
2. Enhanced Driver-Assistance Systems (ADAS): Leveraging AI and sensor technology, Toyota’s ADAS features have evolved significantly. These systems include automated braking, lane-keeping assist, and adaptive cruise control. They are designed to reduce driver fatigue and increase overall road safety by assisting in navigation and vehicle control.
Brian Kursar on Vehicl Safety: “The most important feature of connected vehicles to me is safety connect. The ability, if you’re in an accident and knocked unconscious, to have someone on the phone through your speakers asking if you are okay, and if you’re not responsive, sending emergency services to your location based on the GPS of the vehicle.”
In-Cabin Technology and User Experience
1. Infotainment and Connectivity: Toyota’s infotainment systems are designed to provide both entertainment and information in a user-friendly interface. Integrating with smartphones and other personal devices, these systems offer navigation, media playback, and vehicle diagnostics, all controlled via touchscreens or voice commands.
2. AI-Enhanced Features: Toyota Connected uses AI to enhance the in-cabin experience, offering personalized suggestions such as reminders for maintenance, route recommendations based on traffic conditions, and even adjusting in-car environmental settings based on driver preferences and behaviors.
3. Remote Control and Monitoring: Using the Toyota app, vehicle owners can remotely start their car, lock or unlock doors, and even check fuel levels or battery status in the case of electric vehicles. This functionality extends to monitoring the vehicle’s location and setting geographical or speed alerts, which can be particularly useful for families with young drivers.
Data-Driven Services
1. Predictive Maintenance: By collecting and analyzing data from vehicle sensors, Toyota can predict when parts may fail or require service. This proactive approach not only ensures the longevity of the vehicle but also enhances safety by reducing the likelihood of breakdowns.
2. Telematics and Fleet Management: For commercial users, Toyota offers telematics solutions that help manage vehicle fleets more efficiently. These services provide real-time data on vehicle usage, allowing for better route planning, load management, and maintenance scheduling.
Future Innovations
Looking ahead, Toyota plans to integrate more sophisticated technologies into its connected car offerings:
1. Augmented Reality (AR) Dashboards: AR technology can overlay navigational and other contextual information onto the windshield, allowing drivers to keep their eyes on the road while accessing important data. This technology aims to blend information seamlessly into the driving experience, enhancing safety and convenience.
2. Seamless Mobile and Vehicle Integration: Future developments aim to deepen the integration between the driver’s mobile devices and the vehicle’s systems, allowing for a more connected lifestyle. This could include automatic syncing of schedules, preferred routes, and even entertainment options as soon as the driver enters the vehicle.
3. Autonomous Driving Features: While fully autonomous cars are still under development, Toyota is progressively incorporating semi-autonomous features that pave the way for future fully autonomous vehicles. These features will gradually reduce the need for driver input and increase comfort and efficiency during travel.
Toyota’s connected car innovations are a testament to its dedication to enhancing driver safety, convenience, and enjoyment. As technology evolves, Toyota continues to integrate these advancements into its vehicles, ensuring that they offer some of the most sophisticated and user-friendly experiences available in the automotive market.
Kursar elaborates on the potential of connected vehicles: “With the capabilities of the vehicle post ignition, we see immense potential. For example, implementing a security cam in electric vehicles without draining the battery is something we’re exploring.”
The Industry Context and Comparisons
The automotive industry is rapidly evolving with advancements in connected cars, electric vehicles (EVs), and autonomous driving technologies. Leading automakers are investing heavily in these areas to stay competitive and meet changing consumer expectations. Below is a detailed comparison of how Toyota stacks up against other major players in the industry.
Connected Cars and User Experience
Connected car technology focuses on enhancing the driving experience by integrating the vehicle with the internet, enabling data collection and sharing, real-time communication, and increased functionality through apps and services.
Toyota: Toyota Connected is focused on enhancing the in-vehicle experience through advanced connectivity features that offer improved safety, convenience, and in-cabin intelligence, integrating generative AI to enhance user interaction.
Other Automakers:
- Tesla: Known for its high level of connectivity and regular over-the-air software updates that improve vehicle functionalities and driving experience continuously.
- Ford: FordPass platform offers features like remote start, vehicle status checks, and location services, emphasizing user convenience and vehicle management.
- Volkswagen: Implements its Car-Net service to offer features like remote vehicle control, parking info, and enhanced navigation, aiming to enhance the driving and ownership experience.
Electric Vehicles
Electric vehicles are gaining popularity due to their efficiency, lower environmental impact, and reduced operating costs.
Toyota: Toyota has been expanding its lineup of hybrid and electric vehicles, focusing on reliability and fuel efficiency with plans to introduce more fully electric models.
Other Automakers:
- Tesla: Leads the EV market with a strong focus on full electrification and high-performance electric models.
- Nissan: Early adopter with the Leaf, one of the first mass-market electric cars, focusing on affordability and accessibility.
- BMW: Offers a range of luxury electric vehicles under the BMW i brand, emphasizing performance and sustainability.
Autonomous Driving
Autonomous driving technology aims to reduce human input in driving, enhancing safety and efficiency. This technology is still in the early stages of public deployment but is rapidly developing.
Toyota: Engages in developing autonomous driving technology through its research arms and partnerships, focusing on safety and incremental deployment.
Other Automakers:
- Waymo (Google): A leader in autonomous driving technology, Waymo has been conducting public trials and focusing on fully autonomous taxi services.
- General Motors (Cruise): Actively developing and testing autonomous vehicles with plans to launch a robo-taxi service.
- Audi: Integrates semi-autonomous features in its luxury models and invests in technology for future fully autonomous vehicles.
Overview of how Toyota and its competitors are approaching key technological areas in the automotive industry
| Company | Connected Cars Experience | Electric Vehicles Focus | Autonomous Driving Innovation | Sources |
|---|---|---|---|---|
| Toyota | Advanced safety features, in-cabin AI, Toyota Connected | Hybrid leaders, expanding EV lineup | Incremental development, safety-focused | Toyota |
| Tesla | High connectivity, software updates, integrated app ecosystem | Market leader in EVs, performance focus | Advanced Autopilot, aiming for full autonomy | Tesla |
| Ford | FordPass for remote functionalities, Wi-Fi hotspot | Growing lineup of hybrids and EVs, Ford Electric | Co-Pilot360 technology, autonomous tests | Ford |
| Volkswagen | Car-Net for enhanced navigation and remote access | ID series focused on electrification | Investments in autonomous technology, partnerships | Volkswagen |
| Nissan | NissanConnect for navigation and security features | Leaf model, affordability in EV sector | ProPILOT semi-autonomous features | Nissan |
| BMW | BMW ConnectedDrive, luxury-focused features | BMW i series with sustainability emphasis | Autonomous driving research, luxury semi-autonomous features | BMW |
| Waymo | Leading autonomous driving technology, user experience through taxi service | N/A | Public autonomous driving tests, fully autonomous taxis | Waymo |
| General Motors (Cruise) | OnStar system integrating emergency services and connectivity | Commitment to electrification with Ultium battery technology | Cruise autonomous vehicles, urban environment focus | General Motors |
| Audi | Audi Connect with luxury services, remote access | e-tron series for high-performance EVs | Investment in Level 3 autonomy, Traffic Jam Pilot | Audi |
Challenges and Future Directions for Toyota and Toyota Connected
Brian Kursar discusses several challenges, including data privacy and the financial implications of deploying new technologies.
As Toyota continues to expand its presence in the connected car and autonomous vehicle sectors, several challenges and strategic directions emerge, shaping the future trajectory of the company. Understanding these factors is crucial for navigating the complex landscape of modern automotive technology.
Challenges
1. Data Privacy and Security: In an era when data breaches are increasingly common, ensuring the security and privacy of user data is paramount. Toyota’s commitment to privacy by design is critical, but the complexity of implementing such frameworks across global markets, each with its regulations, presents a significant challenge.
Brian Kursar emphasizes the importance of privacy, “We’ve gone above and beyond to implement privacy by design in everything that we make… It’s a core principle that the data is owned by the customer, and they are in control at all times.”
2. Technological Integration Costs: The integration of advanced technologies such as AI, machine learning, and sophisticated sensors for autonomous driving leads to increased production costs. Balancing these costs while maintaining affordable pricing for consumers is a continuous challenge.
3. Regulatory Compliance: As autonomous and connected vehicle technologies evolve, so do the regulatory landscapes governing them. Compliance with varying international laws and standards on safety, cybersecurity, and emissions can be cumbersome and resource-intensive.
4. Market Competition and Technological Pace: The pace of technological change is rapid, and staying ahead requires constant innovation and adaptation. Competing with tech giants and traditional automakers who are also aggressively pursuing these technologies places additional pressure on Toyota to continually innovate and refine its offerings.
Future Directions
1. Enhanced Connectivity Solutions: Looking ahead, Toyota Connected plans to deepen the integration of IoT devices and expand the functionality of its vehicles to interact more seamlessly with users’ digital lives. This includes enhancing vehicle-to-everything (V2X) communications and leveraging cloud computing for better data management and service delivery. “We’re looking into integrating more advanced tech like security cams in electric vehicles which don’t drain the battery—a big problem with traditional vehicles”, Brian Kursar.
2. Electrification and Sustainability: Toyota is set to increase its investment in electric vehicles, aiming to diversify its portfolio with more fully electric models alongside its leading hybrid options. This shift is in response to growing environmental concerns and market demands for sustainable transport solutions.
3. Autonomous Driving Technologies: While Toyota adopts a cautious approach to fully autonomous vehicles, it is steadily advancing its capabilities in this area. The focus is on developing Level 2 and Level 3 autonomous systems that offer advanced driver-assistance features while ensuring utmost safety.
4. Expanding Global Reach: Toyota aims to expand its market presence by tailoring its technologies and vehicle offerings to meet the diverse needs and regulations of different regions. This includes adapting connected car services to various infrastructures and consumer preferences around the world.
5. Collaborations and Partnerships: Continuing to forge strategic partnerships with tech firms, startups, and other automakers will be vital for Toyota. These collaborations can accelerate technological advancements, mitigate risks associated with high research and development costs, and broaden the company’s innovation ecosystem.
6. Generative AI and Data Insights: Brian Kursar is “Using things like generative AI to further enhance what we’re calling in-cabin intelligence… that’s to me the most exciting things that connected started and is now starting to unlock for everyone.” and “What really started my career to get to CTO was in data and data science. Using my background in automation and architecture and really finding new ways to make data more accessible for executives, for managers, for line workers, etc., was a big thing.”
Biran Kursar on Toyota’s culture: “The secret to my success thus far has been about bringing people together… and really taking care of each other. It’s about creating a company culture where you’re operating it like a family where people are leaning in to help each other out.”
The CDO TIMES Bottom Line
As Toyota and Toyota Connected navigate these challenges and opportunities, their strategies will likely focus on enhancing user experience, increasing vehicle connectivity, and ensuring sustainable and safe transportation. The road ahead is complex, but with a clear focus on innovation, customer privacy, and global expansion, Toyota is well-positioned to maintain and extend its leadership in the automotive industry.
Toyota’s strategy involves a careful balance between innovation and user trust, with a strong emphasis on privacy by design. Looking forward, Toyota Connected plans to expand its range of connected services, further blurring the lines between automotive and technology companies.
“We’re tasked with making data more accessible for executives, managers, line workers… It’s about pulling all different datasets into dashboards, which was not very easy to do back in 2008,” Kursar adds, reflecting on the evolution of data use within Toyota.
Toyota’s investment in connected car technologies not only enhances vehicle functionality but also redefines the automotive landscape. By focusing on both technological advancements and user-centric designs, Toyota is well-positioned to lead in the era of connected and autonomous vehicles. This strategy not only meets current consumer demands but also sets a foundation for future growth, potentially leading to increased market share and continued consumer loyalty in the evolving automotive industry.
For executives looking to understand the impact of connected technologies in the automotive sector, Toyota’s journey offers valuable insights into integrating innovation with customer trust and privacy, setting a benchmark for the industry.
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