Toyota Motor Corporation announced on Wednesday that its global production declined for the eighth consecutive month in September, due to falling sales and output in its largest markets, the United States and China. Overall, the Japanese automaker’s global output fell by 8% compared to the same month last year, totaling 826,556 vehicles. Production in the U.S. dropped by 14%, while in China it declined by 19%.
The U.S. production slowdown was particularly affected by the suspension of the Grand Highlander and Lexus TX SUVs due to an airbag issue, though production of these models resumed on October 21. On the other hand in China, the world’s largest automotive market, Toyota faces tough competition from domestic brands producing electric vehicles (EVs) and plug-in hybrids. This shift in consumer preferences is putting additional pressure on Toyota’s market share in the region.
Due to production challenges, Toyota reported a 7% drop in sales for September compared to the previous year, totaling 853,149 vehicles. Sales in the U.S. plunged by 20%, while China saw a 9% decline, and domestic sales in Japan fell by 6%.
For the first 9 months of 2024, Toyota sold 7.4 million vehicles globally, a 2% decrease year-over-year. This includes its luxury Lexus brand, which is also grappling with shifts in the automotive landscape. These ongoing production and sales difficulties highlight the significant obstacles traditional automakers face as they navigate an increasingly competitive and rapidly evolving electric vehicle market.
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