Leather Scraps From Car Manufacturing Are Reborn as Bags: Introducing Tsugi-Craft, Toyota Upcycle’s New Premium Line

Toyota Motor Corporation, one of Japan's leading automakers, has launched a new initiative to tackle the unavoidable issue of waste in the car manufacturing process. While the company has long been upcycling under its "TOYOTA UPCYCLE" project, it is now taking things a step further. They have launched a new premium line that transforms scraps from genuine leather seats into stylish, high-design products.

This new line, named "Tsugi-Craft by TOYOTA UPCYCLE," is more than just an effort to reduce waste; it represents the company's commitment to craftsmanship and its bold challenge toward sustainability.

We sat down with the project's leader, Noriyuki Nakamura, and its designer, Mai Kato, to learn more about where this initiative is headed.

Toyota Motor Corporation launched the “TOYOTA UPCYCLE” project in July 2021.

Even before the project's launch, individual factories were already recycling and reusing waste materials from the automotive production process. But materials like seatbelts and seat fabric scraps, often made from composite materials or featuring special coatings, proved difficult to recycle and were only reused sporadically.

'The materials used in automotive parts are extremely durable, and it’s a waste to simply discard them. We wondered if we could turn the upcycling of these scraps and waste materials into a new business, so we launched a new team,' explains Nakamura.

The core idea behind 'TOYOTA UPCYCLE' was to move beyond sporadic recycling efforts and figure out how to consistently reframe these difficult-to-process materials, generated daily, as valuable resources. That was the starting point for the project.

With the theme of turning 'mottainai' (a sense of regret concerning waste) into 'motto ii' (something even better), 'TOYOTA UPCYCLE' adds new value by transforming scraps and waste materials into stationery and outdoor gear.

Cowhide deemed unusable for seats due to the slightest scratch or wrinkle, markings left from the cutting process, and even the unavoidable shrinkage of nylon fabric during dyeing—all are treated as unique characteristics that add value, resulting in one-of-a-kind items.

'The stationery line resonates with people who want to incorporate sustainable items into their daily lives, while the gear seems to be used as everyday fashion items. We've seen a wide variety of customers embrace our products,' says Kato.

The fact that the customer base differed for each product line worked to the company's advantage. Not only did it confirm the high demand for upcycled products, but it also opened up the possibility of reaching a broader audience beyond Toyota's existing customers.

'We want to spread these upcycled products and the philosophy behind them to customers we don't normally have contact with. That's why we created the premium line, as a way to step into a territory we haven't reached before,' says Nakamura.

While many people recognize the importance of upcycling, the process often leads to higher-priced products. However, by doubling down on the meticulous attention to detail worthy of a premium line and by considering the value of passing these activities on to the next generation, the team believes they can communicate a value that transcends the price tag.

To reach a new audience, particularly men and women in their 20s and 30s, leather bags were chosen as a tangible way for people to experience upcycling in their everyday lives. The project was dubbed "Tsugi-Craft by TOYOTA UPCYCLE," and the word "Tsugi" is packed with meaning.

"It embodies the concepts of 'the next craft, the next person, and the next future.' It reflects our hope to connect with new people and forge a path toward a circular economy. We especially wanted to highlight 'the next craft,' which is the patchwork technique of piecing together scraps and discarded materials.

Rather than using all-new materials, we want to pass down the traditional Japanese spirit of cherishing what we have and the mending techniques that go with it, hoping our customers will appreciate their value anew," says Nakamura.

These bags are infused with the idea of bringing upcycling into daily life and passing it on to the next generation—a philosophy that's reflected not only in the brand name but also in the very design of the bags.

To create a high-value product, "Tsugi-Craft by TOYOTA UPCYCLE" utilizes scrap materials from Lexus, the company's luxury brand. Automotive parts, subject to rigorous quality standards, naturally have incredible potential as raw materials.

"A car's performance is heavily influenced by its weight, so our seat leather is engineered to be lightweight. On top of that, it’s durable enough to withstand extreme temperature swings between summer and winter and is built to last for 10 to 15 years," explains Kato.

The bags, crafted from this exceptional automotive leather, feature a patchwork design that ties back to the brand concept. And here's a fun twist: the number of patches corresponds to the bag's model number. This led to a surprising moment of inspiration.

"During a meeting at the sewing factory, one particular pattern just came to me. It was a patchwork design with nine pieces of fabric. From that point on, ideas started to flow freely, almost like a jazz improv session," says Kato.

Through further internal discussions, the team settled on practical details like a user-friendly drawstring style and the overall size of the bag.

Nakamura emphasizes that the point wasn't to simply spotlight the use of "Lexus leather." The primary goal, he says, is to convey the critical importance of upcycling scrap materials for the future of the automotive industry and, by extension, modern society.

"We chose to hold the pop-up event at Daikanyama T-SITE, a well-known cultural hub, specifically to reach young people in their 20s and 30s who are passionate about design and sustainability. I think we ultimately succeeded in pioneering a new sales channel for us as an automaker," says Nakamura.

The strategy paid off. After all, the practice of adding value to scrap materials through design and craftsmanship is a message that needs to extend far beyond the walls of a single car company.

By treating SDG initiatives—now a key aspect of corporate social responsibility—as a business opportunity, the project forges new connections. The "Tsugi-Craft by TOYOTA UPCYCLE" endeavor showcases a powerful new possibility for the future of sustainable manufacturing.