Toyota Motor Corporation reported Wednesday that its global production for the first half of fiscal 2024 (April to September) decreased by 7.0% year-on-year, marking the first decline in four years, affected by quality scandals and weak sales in the Chinese market.
For Toyota and Lexus brands, global production in the first half reached 4.71 million units, down from last year’s record 5.06 million units. Last year’s performance was boosted by increased semiconductor supply, which drove global production growth.
In the domestic Japanese market, production fell 9.4% to 1.53 million units, largely due to a three-month production halt of three models including the Yaris Cross SUV for failing to fully comply with government vehicle testing standards. Additionally, recalls of the Prius hybrid model affected production.
Overseas production decreased by 5.8% to 3.17 million units, with China showing the most significant decline at 17.1% year-on-year. This was primarily due to intense price competition with domestic rivals like BYD, who attracted consumers with more affordable electric vehicles. Among other overseas markets, North American production fell 1.7%, while Europe increased by 3.2%.
During April to September, Toyota’s global sales decreased by 2.8% to 5.03 million units, the first decline in two years. Domestic sales in Japan fell 9.3% to 716,588 units, while overseas sales decreased by 1.6% to 4.31 million units.
In the electric vehicle segment, global sales reached 78,178 units in the first half, a 32.5% increase year-on-year. However, according to informed sources, Toyota earlier this year reduced its 2026 global EV production target by 30% to about 1 million units due to slowing demand.
Hybrid models showed strong performance, with sales surging 21.1% to 2.03 million units, partly driven by demand for their lower prices.
Japan’s eight major automakers (including Toyota) saw their combined global production fall 6.0% to 11.88 million units in April-September, the first decline in four years. Among the eight companies, only Suzuki and Mazda avoided production decreases. Industry-wide vehicle testing scandals affected companies like Toyota and Honda, while weak Chinese market demand also negatively impacted production.
Honda’s production fell 8.1% to 1.82 million units, while Nissan declined 7.8% to 1.53 million units. The eight manufacturers’ total global sales decreased by 2.5% to 11.99 million units.
Key Points:
- Toyota’s global production falls 7% in first half, first decline in four years.
- Quality issues and weak Chinese market sales are major factors.
- EV sales up 32.5%, but 2026 production target reduced
- Hybrid model sales show significant growth at 21.1%.
- Only Suzuki and Mazda maintain production growth among Japan’s eight major automakers.
- Industry affected by vehicle testing scandals and declining Chinese market demand.
