Toyota Motor Corporation has announced that Chief Financial Officer Kenta Kon will become the company’s next President and CEO. He will take over on 1 April 2026, replacing Koji Sato, who has been in the role since early 2023.
This leadership change comes at an important time for Toyota, as the company faces shifting global markets, trade challenges, and a rapidly evolving auto industry focused on electrification, software, and new mobility services.
Toyota said these changes are meant to help management make decisions faster and improve the company’s ability to handle challenges. The company also said the new structure supports its long-term goal of contributing to society through industry and innovation.
With the changes, Sato will become Vice Chairman and take on the role of Chief Industry Officer, which is intended to boost industry partnerships and policy work. His move comes as Toyota announced third-quarter results for the period ending 31 December 2025, showing record revenue but pressure on profits from tariffs and other costs.
As CEO, Sato focused on electrification and transforming mobility. When he started in February 2023, he introduced a three-part plan: speed up electric vehicle development, strengthen Toyota’s software projects, and promote carbon neutrality in Asia.
Instead of focusing only on electric vehicles, Toyota under Sato used a multi-pathway approach. The company balanced battery-electric cars, plug-in hybrids, and hydrogen technology to meet different market needs.
Kon’s new role may mean more focus on financial discipline and value chain changes. As CFO, he helped strengthen Toyota’s earnings, lower break-even points, and improve cost efficiency. Toyota says stronger earnings are key to building better vehicles at scale.
Toyota’s third-quarter results were mixed. Operating profit dropped to ¥1.191 trillion, and net income fell over 40 percent year-on-year to ¥1.257 trillion, mainly due to tariffs and global costs. However, revenue rose almost 8 percent to ¥13.457 trillion, showing strong sales.
Despite recent profit challenges, Toyota raised its full-year operating profit forecast to ¥3.8 trillion for the year ending 31 March 2026, citing a weaker yen and ongoing cost cuts.
Toyota says building long-term resilience will require changes across the entire value chain, not just in certain areas. Kon’s financial and operational experience is expected to be important for this effort.
In addition to internal changes, Toyota is focusing more on working with other companies and industries. Sato will become Chairman of the Japan Automobile Manufacturers Association (JAMA) and stay as Vice Chair of KEIDANKEN, Japan’s top business group. In these roles, he will support policies to boost manufacturing and wider industry cooperation.
Toyota said the leadership changes were approved at an executive meeting on 6 February and reflect the company’s belief in the best structure for today’s economic and industry conditions.
As Kenta Kon prepares to become CEO, industry watchers will watch how Toyota manages its multi-pathway technology approach while facing pressure to accelerate electrification, improve profits, and shape its future in mobility.
