Toyota’s R&D Budget for 2018: $10 Billion

Toyota Motor Corp. expects to spend a record 1.1 trillion yen ($10 billion) on research and development in the current fiscal year that began April 1.

The company says its capital spending over the same period will soar to a record-high 1.4 trillion yen ($12.8 billion).

President Akio Toyoda calls the spending blitz a response to a “life-and-death struggle” with tech companies that are investing at a pace several times faster. He also describes the auto industry’s current competitive environment as uncharted territory.

This year Toyota will devote 35% of its r&d spending to autonomous driving and other emerging technologies. Those are areas where the company faces fierce competition from tech companies and Volkswagen.

Last year Toyota spent about $9.4 billion on r&d, compared with $17.8 billion for Alphabet, The Nikkei says. The newspaper points out that Toyota’s net profit expanded about 40% over the past decade, but it more than doubled over the same period for BMW, Daimler and VW.