Toyota reports eighth consecutive month of declining global output

With sales and output falling in its biggest markets, the United States, and China, Toyota Motor Corporation said Wednesday that its global production dropped for the eighth straight month in September. In all, the Japanese automaker's global output dropped by 8 per cent month over month against September of the previous year to 826,556 vehicles. In the U.S., production declined 14%, and in China, 19%.

A suspension of the Grand Highlander and Lexus TX SUVs because of an airbag issue dented that U.S. production slowdown particularly. Production of these models resumed at Toyota on October 21.

While China remains the world's largest automotive market, Toyota still has to contend with they rise of electric vehicles (EVs), and plug in hybrids from domestic brands, stiff competition. With this shift in consumer preference, and thus pressure, on Toyota’s market share in the region.

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Production challenges aside, Toyota said that sales dropped 7 percent in September from a year earlier, to a total of 853,149 vehicles. Sales in the U.S. tumbled by 20%, according to the figures. Sales in China also were down 9 percent, and domestic sales in Japan plummeted by 6 percent.

Toyota has sold 7.4 million vehicles globally for the first nine months of 2023, down 2% on the year. That extends to sales of its luxury Lexus brand, which is also feeling the pangs of the changing automotive landscape.

Despite production and sales challenges lingering on, it points out large hurdles for traditional automakers as they are trying to navigate a competitive electric vehicle market undergoing rapid change.