Tokyo (FFN Business) – Toyota, the world’s largest automaker, reported another decline in global production in June, marking the fifth consecutive month of decreases. The drop was the steepest in 18 months, fueled by a certification scandal in Japan and intense price competition in China.
The company produced 795,862 vehicles worldwide in June, a 12.9% year-on-year decrease. This represents the sharpest decline since December 2022.
In Japan, production plunged by 18.8% after the Ministry of Land, Infrastructure, Transport and Tourism discovered that Toyota and other manufacturers had manipulated data to expedite the approval process for new models. China, the world’s largest auto market, also saw a significant decline of 21.7%. This marks the fifth consecutive month of at least a 20% drop in China, attributed to fierce price competition and the growing market share of domestic brands.
Production also declined in the United States and Europe, by 6.2% and 6.6%, respectively.
Toyota’s global sales fell by 5.1% in June, primarily driven by the declines in Japan and China.
For the first six months of the year, Toyota’s production decreased by 5%, while sales dipped by a more modest 0.9%.
The company is set to release its first-quarter earnings on Thursday, August 1. Analysts expect operating profit to rise by 21%, buoyed by a weaker yen and stronger demand for hybrid vehicles in the United States.
