Toyota Motor Corporation reported a 6.2% year-over-year decrease in global vehicle production for November, marking the tenth consecutive month of decline. Despite production challenges, worldwide sales increased for the second consecutive month, driven by strong demand in key markets like the United States and China.
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Production Challenges Persist
November’s global production totaled 869,230 vehicles, a significant drop compared to the same period last year. This decline surpasses October’s 0.8% dip, indicating persistent challenges in the automaker’s supply chain and manufacturing operations. Several factors contributed to the continued production slowdown.
Slow Recovery in U.S. Production
U.S. production saw an 11.8% decrease in November, despite the resumption of Grand Highlander and Lexus TX SUV production in late October after a four-month halt. This indicates that recovery in the North American market remains sluggish.
Improved Performance in China
Production in China fell by 1.6% in November, a notable improvement from the 9% decline in October. This positive shift can be attributed to increased sales of models like the Granvia and Sienna minivans, as well as the bZ3 electric sedan, developed in partnership with BYD. However, Toyota faces increasing competition from domestic Chinese automakers like BYD. To address this, Toyota plans to establish an independent plant in Shanghai to manufacture Lexus electric vehicles starting around 2027, according to Nikkei.
Production Disruptions in Japan
Production in Japan, which accounts for roughly one-third of Toyota’s global output, experienced a 9.3% decline in November. This decrease was partly due to a two-day production stoppage at the Fujimatsu and Yoshiwara plants. Such disruptions further exacerbated the overall production challenges faced by the company.
Global Sales Show Growth
Despite production setbacks, Toyota achieved a 1.7% increase in worldwide sales, reaching a record 920,569 vehicles for November. Robust demand in the U.S. and China significantly contributed to this positive sales performance.
Year-to-Date Performance
For the January-November period, Toyota’s global production totaled approximately 8.75 million vehicles, reflecting a 5.2% decrease compared to the same period last year. Global sales also experienced a decline of 1.2% during this period. These figures encompass Toyota and Lexus brand vehicles but exclude those from subsidiary companies Hino and Daihatsu.
Continued Focus on Recovery
While sales figures offer a glimmer of hope, Toyota’s ongoing production challenges highlight the complexities of the current automotive landscape. The company continues to navigate supply chain disruptions, fluctuating market demand, and the increasing competition within the electric vehicle sector. Future performance will depend on Toyota’s ability to address these challenges and adapt to evolving market dynamics.
