Toyota’s Global Output Declines for Ninth Consecutive Month in October
Toyota Motor Corp., the world’s largest automaker, reported a 0.8% decline in global vehicle production for October, marking its ninth consecutive month of reduced output. However, the drop was less severe compared to September’s 8% decline.
Despite the production slump, Toyota saw a 1.4% increase in global sales to 903,103 vehicles, setting a record for the month of October. This marks the first rise in sales for the automaker in five months.
Regional Production Trends
- United States: Production fell sharply by 13%, primarily due to a four-month halt in manufacturing the Grand Highlander and Lexus TX SUVs caused by airbag issues. Production resumed on October 21, and operations at Toyota’s Indiana plant are expected to normalize by January.
- China: Output dropped 9%, reflecting continued stiff competition from local brands.
- Thailand: Production decreased by 13%, driven by weaker demand.
- Japan: Output rose 8%, recovering from disruptions caused by a supplier’s accident a year ago that had temporarily slowed production across multiple plants. Japan now accounts for roughly one-third of Toyota’s global output.
- Canada and Mexico: Both regions saw modest increases in production, up by 2% each.
Broader Implications
The October figures highlight challenges Toyota faces, particularly in its two largest overseas markets, the U.S. and China. While the resumption of halted SUV production in the U.S. may provide a boost in the coming months, Toyota continues to navigate intense competition in China and shifting demand dynamics in other key regions.
The production and sales data exclude figures from Toyota’s affiliated companies Hino Motors and Daihatsu but include the luxury Lexus brand.
