The purpose of this paper is to examine the process of development of the distribution network at Toyo Kogyo in the postwar period, and discuss the differences between automobile manufacturers regarding automobile distribution.<br>The dealer network built by Toyo Kogyo had little capital compared to Toyota and Nissan Motor. Therefore Toyo Kogyo had to provide dealers with a large amount of funding for capital investment. Toyo Kogyo dealers were at a comparative disadvantage in terms of funding. It is conjectured that the lack of funding for dealers acted as a constraint, to a certain degree, on expansion of sales bases by Toyo Kogyo. On the other hand, the careful deployment of bases by dealers with large amounts of capital can be regarded as one factor underlying the competitive advantage of Toyota.<br>The wage system for salesmen was likely significant in promoting sales volume at Toyo Kogyo dealers. Saitama Mazda developed a wage system with a high sales margin, and salesmen were given incentives for increasing sales. The fact that a wage with system with a high sales margin was developed at Saitama Mazda has considerable significance in terms of research history. Previously, it was understood that, in the wage systems of dealers in the Japanese automobile industry, the base pay accounted for a high percentage of compensation and the sales margin was low. The case of Saitama Mazda suggests that there were differences between companies in Japan regarding the approach to sales margins.