Toyota reports global production decline despite record November sales

Toyota Motor has reported a significant downturn in its global production figures for November 2023, marking the tenth consecutive month of decline, despite achieving record-breaking sales figures for the same period. The Japanese automotive giant manufactured 869,230 vehicles globally in November, representing a 6.2% decrease compared to the same month in the previous year, a more substantial decline than October's 0.8% reduction.

The company's American operations witnessed a considerable setback, with production falling by 11.8%. This decline persisted despite the resumption of manufacturing for the Grand Highlander and Lexus TX SUV models in late October, following a four-month production stoppage. The slow recovery in US production continues to impact the company's global output figures.

In China, Toyota's production experienced a marginal decline of 1.6%, showing improvement from the previous month's 9% decrease. This relative stabilisation was attributed to increased local demand for several models, including the Granvia and Sienna minivans, as well as the bZ3 electric sedan, which was developed in collaboration with Chinese manufacturer BYD. In response to growing competition from BYD and other Chinese automotive brands, Toyota has announced plans to establish an independent manufacturing facility in Shanghai, with production of electric vehicles for its luxury brand Lexus scheduled to commence around 2027, according to reports from the Nikkei newspaper.

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The Japanese domestic market, which represents approximately one-third of Toyota's global production capacity, recorded a 9.3% decline in November. This reduction was partially attributed to a two-day production halt at the company's Fujimatsu and Yoshiwara manufacturing facilities.

Despite these production challenges, Toyota achieved remarkable sales figures, with global sales increasing by 1.7% to 920,569 vehicles, establishing a new record for November. However, examining the broader picture for the first eleven months of the year reveals that Toyota's global production decreased by 5.2% compared to the same period in 2022, with approximately 8.75 million vehicles manufactured. Global sales for this period also showed a modest decline of 1.2%.

These figures encompass vehicles produced under both the Toyota and Lexus brands but exclude production from Toyota Group companies Hino and Daihatsu. The contrasting trends between production and sales figures highlight the complex market dynamics Toyota is navigating, balancing supply chain challenges with robust consumer demand across various global markets.