Toyota's New CEO: Will Kenta Kon Focus on EVs?
Toyota's CFO Kenta Kon has been named as the company's next President and CEO, set to take on the role from 1 April 2026.
The announcement comes as the Japanese automotive giant navigates a period of significant transformation, with evolving market conditions and shifting industry dynamics at play.
According to the company, the changes are “intended to accelerate management decision-making in response to changes in the internal and external environment and to establish a structure that will enable Toyota to fully carry out its mission of contributing to society through industry."
Koji Sato, who has held the CEO position since February 2023, will transition to Vice Chairman and take on the newly created role of Chief Industry Officer.
The reshuffle coincides with Toyota's third-quarter earnings announcement for the period ending 31 December 2025, which presented a mixed financial landscape of record revenues tempered by declining net profit attributed to tariff impacts.
EVs in Koji Sato’s time as CEO
When Toyota unveiled Sato as part of its refreshed leadership structure in February 2023, his vision centred on "drastically" accelerating the rollout of new EVs as part of broader ambitions to transform the world's largest automaker into a mobility company.
At a press conference announcing his appointment, the incoming CEO outlined a three-pronged strategy:
- Ramp up the carmaker's EV strategy
- Strengthen its Woven-related software-first initiatives
- Focus on achieving carbon neutrality in Asia.
Over nearly three years at the helm, Sato has pursued a multi-pathway approach, maintaining a balance between BEVs, plug-in hybrids and hydrogen technologies, with strategies tailored to regional demand patterns.
Financial conditions
Toyota's third-quarter 2025 results saw operating profits decline to ¥1.191tn (US$7.6bn), a decrease from the previous quarter, while net income fell more than 40% year-on-year to ¥1.257tn (US$8bn).
However, revenue climbed nearly 8% to ¥13.457tn (US$85.69bn).
Despite the quarterly decline, the firm has lifted its full-year operating profit forecast to ¥3.8tn (US$24.19bn), up from ¥3.4tn (US$21.65bn), for the year ending 31 March 2026.
The company attributes this to a weak yen and cost-cutting initiatives.
According to Toyota, enhancing the company's earning power represents "the foundation for continuing to make ever-better cars" with "lowering break-even volume" identified as a key priority.
“To achieve this, it is necessary to lead reforms across the entire company,” the firm adds, “not through functional segmentation but by addressing the value chain as a whole.”
Kenta's promotion could reflect his track record as CFO, where he has been at the forefront of efforts to strengthen the company's earning structure.
Expanding industry collaboration
In the announcement, Toyota says that to advance its transformation into a mobility company, "it is necessary not only to strengthen industry collaboration but also to expand partnership beyond the industry".
To support this objective, Sato is assuming the role of Chairman of Japan Automobile Manufacturers Association (JAMA), while continuing his Vice Chair position at KEIDANKEN (Japan Business Federation), to which he was appointed in May 2025.
In the latter capacity, Toyota says he is expected to promote policy proposals centred on manufacturing and advance industry collaboration to enhance Japan's industrial competitiveness.
The proposal for these leadership changes received approval at an Executive Appointment Meeting held on 6 February, as it is viewed as the "optimal new leadership structure" given current environmental changes and the individual strengths of the executives involved.
