Toyota Motor Corp. revealed that its global production dropped for the 10th consecutive month in November, manufacturing 869,230 vehicles—a 6.2% decrease compared to the same period last year. Despite this decline, global sales rose by 1.7% to 920,569 units, marking a second straight month of growth, driven by robust demand in key markets like the United States and China.
In the U.S., Toyota’s production fell 11.8%, even though the manufacturing of Grand Highlander and Lexus TX SUVs resumed in late October after a four-month pause. Meanwhile, China saw a smaller production decline of 1.6%, compared to a sharper 9% drop in October. Strong sales of the Granvia, Sienna minivans, and the BYD-partnered bZ3 electric sedan bolstered the recovery in that market.
Japan, which accounts for about a third of Toyota’s global production, reported a 9.3% decline. Contributing to this was a two-day production stoppage at its Fujimatsu and Yoshiwara plants.
The overall production decrease comes as Toyota explores strategies to compete with Chinese automakers, including BYD, which have been gaining momentum. Plans are underway to build a standalone factory in Shanghai to produce electric vehicles for its Lexus brand, with operations expected to start by 2027, according to a Nikkei report.
While production has struggled, Toyota’s global sales performance continues to break records, setting a new high for November. However, year-to-date figures reveal a 5.2% drop in production to approximately 8.75 million vehicles and a 1.2% decline in sales compared to 2022. These totals include the Lexus brand but exclude figures from subsidiaries Hino and Daihatsu.
Author’s Opinion
Toyota’s ongoing production decline highlights the challenges of navigating supply chain constraints and shifting market dynamics, particularly as competition intensifies from Chinese automakers like BYD. While the company’s ability to sustain strong sales signals resilience and brand loyalty, the dip in output raises questions about its preparedness to meet growing demand for electric vehicles in a rapidly evolving industry. Balancing production efficiency with innovation will be crucial for Toyota to maintain its leadership in the global market.
