Toyota's push into humanoid robotics challenges tesla and chinese firms

Toyota is intensifying its efforts in humanoid robotics, aiming to compete with Tesla and Chinese manufacturers. The company plans to deploy 40,000 robots, with $6.4 billion annually allocated for factory automation. Walden Robotics, a spin-off from Toyota, recently raised $300 million, reaching a post-money valuation of $1.1 billion. Analysts believe Toyota could capture 3% to 8% of the humanoid robot market by 2035, translating to 190,000 to 540,000 units. Carl Vine of M&G Investment highlights Toyota's potential to lead in robotics due to its vast data and internal resources. Despite optimism, some investors caution that Toyota's past innovations, such as hydrogen vehicles and solid-state batteries, have underperformed. Modern, which acquired Boston Dynamics, plans to produce Atlas robots in 2028, while Tesla aims for 1 million units of Optimus. Toyota's new CEO, Kenta Kon, is pushing for robotics to counter Chinese competition. The company is also building a new factory in Japan to integrate its robotics solutions. Toyota's focus remains on its core automotive business, with robotics seen as a supplementary growth area. Toyota's research institute has developed a foundational model for robotics, used in Boston Dynamics' Atlas and its own Eley robot. However, some investors argue that robotics is primarily a tool to support Toyota's automotive production. The company's robotics strategy is still in its early stages, with a focus on internal factory automation rather than standalone business growth.