Tokyo: Toyota Motor Corporation said on Thursday that its Chief Executive Officer Koji Sato will step down, with Chief Financial Officer Kenta Kon set to take over the top role from April 1, 2026.
The leadership change was announced as part of a wider management reshuffle at the Japanese automaker.
Sato, who became CEO in 2023, will remain at Toyota in a newly created senior role that focuses on industry level strategy and external partnerships rather than day to day management.
Toyota said Kon will become President and CEO, placing a finance specialist at the helm at a time when the global auto industry is facing rising costs, fast technological change and intense competition in electric vehicles.
The move comes as Toyota works to balance its strong hybrid vehicle business with growing pressure to expand its electric vehicle lineup, especially in key markets such as China and the United States. Analysts say the appointment of Kon signals a stronger focus on financial discipline and quicker decision making as the company invests heavily in new technologies.
Alongside the leadership announcement, Toyota reaffirmed its positive business outlook and recently raised its full year operating profit forecast, helped by cost controls and a weaker yen. However, the company also faces scrutiny from some investors over governance issues and long term strategy, including major restructuring plans within the wider Toyota group.
Toyota said the changes are aimed at strengthening management and ensuring the company can respond more quickly to shifts in the global automotive industry in the years ahead.