Toyota Forms Mexican Company to Plan Entry to Mexican Market

    MEXICO CITY, May 10 Toyota Motor Corporation today
announced incorporation of Toyota Motor Sales de Mexico, S. de R.L. de C.V.,
established to begin planning for sales, marketing and service operations for
Toyota vehicles in Mexico.  The new company will be based in Mexico City and
is a subsidiary of Toyota Motor Sales (TMS), USA, Inc.

    The company intends to be in operation and selling vehicles in connection
with implementation of the automotive sector agreements included in the North
American Free Trade Agreement (NAFTA).  Such agreements take effect on January
1st, 2004.  Toyota Motor Sales de Mexico will evaluate Mexican market
conditions and plan appropriate model lineup, retailer and service network and
logistics operations to prepare for implementation of commercial operations.

    "We are excited about the future of Mexico given its economic performance
and stability," said TMS President and CEO Yoshimi Inaba.  "Because Toyota
wants to be in solid markets, we have been studying Mexico very closely.  We
are very enthusiastic about Mexico's new era and confident that it represents
a good climate for our future operations.

    "We are convinced that Toyota can offer Mexican customers a new
alternative with quality products and services providing Mexican dealers an
outstanding business opportunity," he said.

    Toyota's global policy is to place greater responsibility for operations
with local management.  For this reason the company intends to appoint Mexican
executives to major management positions.