Toyota 1st-half global output drops 7%; 1st fall in 4 years

Toyota Motor Corp said Wednesday its global production fell 7.0 percent from a year earlier in the April-September period, marking the first drop in four years, as a quality scandal and weaker sales in China dented both domestic and overseas output.

The Japanese carmaker built 4.71 million vehicles for its Toyota and Lexus brands in the first half of fiscal 2024, down from a record 5.06 million in the same period last year when an increased supply of semiconductors helped boost its global production.

Its domestic output fell 9.4 percent to 1.53 million vehicles as it stopped production of the Yaris Cross sport utility vehicle and two other models for three months following revelations that the company did not fully follow government standards in vehicle testing.

A recall of the popular Prius hybrid model also contributed to the lower volume, the automaker said.

Its output outside Japan fell 5.8 percent to 3.17 million vehicles, led by a 17.1 percent drop in China amid stiff price competition with local rivals such as BYD Co, which attracted customers with more affordable electric vehicles.

Among other overseas regions, the volume in North America declined by 1.7 percent, while Europe logged a growth of 3.2 percent.

Global sales fell 2.8 percent to 5.03 million vehicles in the April-September period, the first fall in two years, as sales in Japan fell 9.3 percent to 716,588 vehicles and overseas sales were down 1.6 percent at 4.31 million, according to the automaker.

Toyota sold 78,178 EVs worldwide in the six-month period, up 32.5 percent from a year earlier when its EV global sales surged seven-fold.

Still, earlier this year, Toyota cut its global EV production target for 2026 by 30 percent to around 1 million EVs as demand slows, sources familiar with the matter said last month.

Hybrid vehicle sales soared 21.1 percent to 2.03 million, partly as their lower prices boosted demand.

© KYODO