Toyota global output skids in June, dragged down by Japan and China

Toyota’s global production took a significant hit in June, marking its fifth consecutive month of decline. The downturn was primarily driven by a certification scandal in Japan and intensified competition in China. In June, Toyota’s global output plummeted by 12.9% to 795,862 vehicles, the steepest drop since December 2022. Production in Japan fell sharply by 18.8% following the discovery of irregularities in certification applications for various models, which has been linked to a broader auto safety scandal.

In China, Toyota faced a 21.7% reduction in production due to fierce competition from domestic electric vehicle manufacturers like BYD, who have aggressively slashed prices. This represents the fifth month in a row that Toyota’s output in China has decreased by over 20%. North American production declined by 6.2%, while European output dropped 6.6%, partly due to fewer production days compared to the previous year.

Toyota’s global sales also fell by 5.1% in June, influenced by the declines in Japan and China. The automaker is set to announce its first-quarter financial results on Thursday, with expectations of a 21% increase in operating profit, reaching 1.35 trillion yen (USD 8.7 billion), according to LSEG consensus estimates. This anticipated growth is attributed to a weaker yen and strong demand for hybrid vehicles in the United States.

Over the first half of the year, Toyota’s global production decreased by 5%, while worldwide sales dipped by 0.9%. These figures include the performance of the luxury Lexus brand.