TOKYO

Toyota Motor, the world's largest automobile manufacturer, has reported another month of global production decline in October, marking its ninth straight month of reduced output. However, the company demonstrated notable resilience, with a mild decline and an unexpected rise in global sales.

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The Japanese automotive giant produced 893,164 vehicles globally in October, representing a modest 0.8% reduction compared to the previous year. This figure represents a significant improvement from September's more substantial 8% decline, suggesting potential stabilisation in the company's production challenges.

Notably, Toyota simultaneously reported its first sales increase in five months, with global sales rising 1.4% to 903,103 vehicles—a record for the month of October. This positive sales performance provides a counterpoint to the ongoing production difficulties.

Regional production variations highlighted the complex challenges facing Toyota. The United States experienced the most significant production disruption, with output tumbling by 13%. This substantial decline was primarily attributed to a four-month production halt of SUV models Grand Highlander and Lexus TX due to an airbag-related issue. Production of these models resumed on 21 October, with Toyota expecting full normalisation at its Indiana plant by January.

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China presented another challenging market for Toyota, with production sliding 9%. The automaker continues to face intense competition from local brands in this crucial automotive market. Similarly, production in Thailand dropped by 13%, reflecting soft demand in the region.

In contrast, Japan—which accounts for approximately one-third of Toyota's worldwide output—showed positive momentum. Domestic production climbed 8%, representing a significant bounce-back from the previous year when a supplier facility accident had partially halted production across multiple plants.

The North American region provided a bright spot, with production in Canada and Mexico both increasing by 2%, indicating relative stability in these markets.

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These figures encompass vehicles from Toyota's luxury Lexus brand but exclude production data from group companies Hino and Daihatsu, providing a focused view of the core Toyota automotive operations.

The persistent production challenges reflect broader issues confronting the global automotive industry, including supply chain disruptions, semiconductor shortages, and regional economic fluctuations. Toyota's ability to maintain a relatively modest decline while simultaneously increasing sales suggests strategic adaptability in a complex global marketplace.

Industry analysts will be closely monitoring Toyota's subsequent production reports to determine whether this represents the beginning of a potential recovery or merely a temporary respite in ongoing production challenges.