Toyota's Production Decline Continues
Toyota Motor Corp., the world's largest automaker, has reported a significant decline in its global auto production for the tenth consecutive month. In November, the company produced 869,230 vehicles, marking a 6.2% decrease compared to the same month last year. This decline is notably larger than the 0.8% drop recorded in October, indicating ongoing challenges in the production sector.
Sales Growth Amid Production Challenges
Despite the production downturn, Toyota's global sales have shown resilience, increasing by 1.7% to 920,569 vehicles in November. This marks the second consecutive month of sales growth, driven primarily by stronger demand in key markets such as the United States and China. In the January-November period, however, Toyota's overall global production fell by 5.2%, totaling approximately 8.75 million vehicles, while global sales experienced a slight decline of 1.2%.
Strategic Moves for Future Growth
In response to the competitive landscape, particularly with the rise of local Chinese brands like BYD, Toyota is taking strategic steps to enhance its market position. The company plans to establish a standalone factory in Shanghai to produce electric vehicles for its luxury Lexus brand by 2027. This move comes as part of Toyota's broader strategy to adapt to changing consumer preferences and the growing demand for electric vehicles. In Japan, production fell by 9.3% in November, influenced by temporary production halts at key plants, further complicating the company's recovery efforts.
