Toyota's global output drops for the ninth consecutive month in October

Toyota's global production faces a ninth straight monthly decline in October, reflecting ongoing challenges in the automotive industry.

Toyota Motor Corporation reported a ninth consecutive monthly decline in global production in October, primarily driven by substantial reductions in manufacturing output in the United States and China. However, the decline was less severe compared to previous months, signaling potential stabilization in production levels. Despite the production drop, the company achieved a significant milestone with a 1.4% year-over-year increase in global sales, reaching 903,103 vehicles—a record for October.

The automaker announced it produced 893,164 vehicles globally in October, a modest 0.8% decline compared to the same period last year. This marks an improvement from September, when production fell by 8%. The decrease in U.S. output was particularly notable, with a 13% drop attributed to a four-month production suspension of the Grand Highlander and Lexus TX SUV models. The halt was caused by an airbag-related issue, with production of these models resuming on October 21. Operations at Toyota's Indiana plant are expected to normalize by January.

In China, Toyota faced a 9% reduction in production, reflecting ongoing challenges in competing with robust domestic brands. Meanwhile, Thailand saw a 13% decrease in output, primarily due to weakened demand in the market.

On the positive side, production in Japan, which accounts for approximately one-third of Toyota’s global output, rose by 8%. This rebound follows a slump in production a year earlier, caused by an accident at a supplier’s facility that disrupted operations at several plants. Other regions also showed growth, with production in Canada and Mexico increasing by 2% in each country.

The production and sales data encompass vehicles under Toyota’s luxury Lexus brand but do not include contributions from group companies such as Hino Motors and Daihatsu.

Toyota's performance in October highlights a mixed picture: while production challenges remain in key markets like the U.S. and China, sales growth and recovery in Japanese manufacturing offer a more optimistic outlook for the automaker’s future.

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Source: Reuters‍