A car displaying the Toyota Motor Corp. logo is showcased at the International Auto Show in Mexico City. Photo credit: Yahoo
Toyota faced a significant drop in global production in June, marking the fifth consecutive month of decline. The automaker's output worldwide fell sharply by 12.9%, totalling 795,862 vehicles, the largest decrease since December 2022.
In Japan, production plummeted by 18.8% following a scandal involving irregularities in certification applications for certain models, which has widened concerns about auto safety standards.
Meanwhile, in China, Toyota's production decreased by 21.7%, continuing a trend of steep declines for five consecutive months. This downturn is attributed to fierce competition from local electric vehicle makers like BYD, who have aggressively slashed prices to gain market share.
In North America, production fell by 6.2%, and in Europe, it dropped by 6.6%, partly due to fewer production days compared to the previous year.
Global sales for Toyota also saw a decline of 5.1% in June, impacted by reduced sales in both Japan and China.
Looking ahead, Toyota is set to announce its first-quarter financial results soon, with expectations of a 21% increase in operating profit compared to last year. This forecast, amounting to 1.35 trillion yen ($8.7 billion), is supported by a weaker yen and strong demand for hybrid vehicles in the United States.
In the first half of the year, Toyota's global production decreased by 5%, while worldwide sales dipped by 0.9%, including figures from its luxury brand Lexus.
