Toyota also builds houses, not just cars

Having a Toyota in the garage is fairly ordinary - the brand has been the global leader for decades. Having a garage built by Toyota is far less usual. Yet in Japan, it is possible to have both: a Toyota parked inside a Toyota garage. Confusing? Slightly, but it will soon make sense.

Toyota also builds houses, and this is far from a recent development. The Japanese giant has been making modular homes since 1977.

It may seem unusual for a car manufacturer to operate in the property sector. In reality, however, the industrial processes involved are very similar to those used to manufacture a vehicle. Toyota’s homes are not built from masonry, such as bricks and cement; instead, they are modular steel homes. In other words, they use the same raw material Toyota has worked with for more than 90 years.

Known as Toyota Home, this division of the Japanese group carries out roughly 85% of the work in the factory, enabling a house to be completed in just 45 days. The company also advertises a warranty of up to 60 years.

Where did the idea come from?

Toyota’s move into the housing sector was no coincidence. The concept can be traced back to Kiichiro Toyoda, the founder of the brand’s automotive division.

While visiting Ford’s factories in Detroit, Toyoda was struck by the efficiency of the Ford Model T assembly line. He recognised that the real value of the system extended beyond car production: it could turn steel into complex products quickly, consistently and under strict control.

Decades later, that approach was transferred to housebuilding. Toyota Home was established to bring the same principles associated with the brand’s vehicle manufacturing to construction: industrialisation, quality control, reduced waste and highly precise production.

“Toyota Home aims to provide a lifetime of total satisfaction. We seek to achieve the highest level of customer satisfaction,” the company states on one of its websites. Anyone already considering buying one should note that these homes are not available on the UK market.

How are Toyota Home houses built?

Much of the work is completed before the house even reaches the plot. Rather than constructing it on site using conventional methods, Toyota produces three-dimensional steel ‘cubes’, each covering around 14 m². These modules leave the factory almost finished, complete with walls, windows, plumbing and electrical wiring. They then simply need to be transported and assembled on site.

The influence of the automotive industry reaches much further than the way these homes are made. Before being delivered to customers, the modules undergo earthquake simulations in a process comparable to the crash tests carried out on cars.

Using steel structures and anti-corrosion methods developed for the motor industry also allows the company to offer a structural warranty lasting up to 60 years. This is roughly twice the average lifespan commonly attributed to many Japanese homes.

A business that remains small

Despite almost five decades of experience, Toyota Home still accounts for only a small share of Japan’s housing market.

According to figures released by the company itself, the division produced around 15,000 units in 2019, in a market where more than 40,000 prefabricated detached homes were sold. As mentioned, Toyota Home manufactures exclusively for the Japanese market.