Toyota Motor reported a global output decline for the ninth consecutive month in October, with production in the US and China experiencing significant drops. Despite these challenges, the overall decline was less severe than in previous months.
The production decline in Japan was attributed to the safety certification scandal at Daihatsu, which had a ripple effect on the production of various models within the Toyota group.
Despite the production slump, Toyota’s global sales saw a 1.4% increase to 903,103 vehicles in October. The automaker produced 893,164 vehicles, a 0.8% decrease compared to the same period in 2023.
In the US, production fell by 13% due to a four-month halt in the production of Grand Highlander and Lexus TX SUV models caused by airbag issues. However, production of these vehicles resumed in October, with full production expected at Toyota’s Indiana plant by January.
In China, Toyota’s output decreased by 9% due to strong competition from local manufacturers. Similarly, production in Thailand dropped by 13% due to a slowdown in regional demand.
On a more positive note, Japan saw an 8% increase in production, recovering from supplier-related disruptions experienced last year. Additionally, Toyota’s production in Canada and Mexico saw marginal growth by 2%, contributing to a more stable North American production figure.
It’s important to note that Toyota’s production and sales data do not include vehicles from Hino Motors and Daihatsu but do account for its Lexus brand.
Despite the global supply chain challenges and market shifts, Toyota’s October figures demonstrate the company’s ability to maintain steady sales growth and recover from production line interruptions.
Toyota Motor reported a 6% increase in consolidated revenues to JPY 23,282bn ($151.2bn) for the first half of FY2025, despite production stoppages at its Daihatsu subsidiary in Japan due to falsified safety tests. These issues notably impacted the group’s operating results in the July-September quarter.
Overall, Toyota continues to navigate challenges in the global automotive market while demonstrating resilience and adaptability in the face of adversity.
