Toyota’s global production tumbled in June, marking the fifth consecutive month of decline. The automaker has been severely impacted by a certification scandal in Japan and an intense price war in China. Worldwide output for Japan’s largest automaker dropped 12.9% to 795,862 vehicles, the steepest decline since December 2022.
In its home market, Toyota’s production plummeted 18.8% following the transport ministry’s findings of irregularities in certification applications by Toyota and other automakers, widening an auto safety scandal.
In China, where domestic electric vehicle makers like BYD have rapidly gained market share and aggressively cut prices, Toyota’s production fell 21.7%. This marks the fifth consecutive month that Toyota’s output in China has decreased by 20% or more.
North America and Europe also saw declines, with production falling 6.2% and 6.6%, respectively, due to fewer production days compared to last year. Overall, Toyota’s worldwide sales fell 5.1% during the month, driven by declines in Japan and China.
Despite these production challenges, Toyota is expected to report a 21% rise in operating profit for the first quarter, reaching $8.7 billion. According to LSEG consensus estimates from six analysts, this anticipated increase is attributed to a weaker yen and robust demand for hybrid vehicles in the United States.
For the first six months of this year, Toyota’s global production decreased by 5%, while worldwide sales dipped by 0.9%. The automaker is due to report its first-quarter financial results on Thursday.
