Toyota global output skids in June, dragged down by Japan and China

Toyota global output skids in June, dragged down by Japan and China

Business

Output worldwide for Japan's biggest automaker slid 12.9%, the sharpest decline since December 2022

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TOKYO (Reuters) – Toyota's global production tumbled in June, down for a fifth straight month with the automaker hit hard by a certification scandal in its home market and a fierce price war in China.

Output worldwide for Japan's biggest automaker slid 12.9% to 795,862 vehicles, the sharpest decline since December 2022.

In its home market, output plunged 18.8% after the transport ministry found irregularities in applications by Toyota and other automakers to certify certain models in a widening of an auto safety scandal.

In China, where domestic electric vehicle makers like BYD have rapidly gained market share and have aggressively cut prices, production fell 21.7% – marking the fifth month in a row where Toyota's output has declined by 20% or more.

Production in North America fell 6.2% while in Europe it dropped 6.6% due to fewer production days compared to last year.

Toyota's worldwide sales fell 5.1% during the month, hurt by declines in Japan and China.

The automaker is due to report first-quarter financial results on Thursday. It is expected to log a 21% rise in operating profit from a year earlier to 1.35 trillion yen ($8.7 billion), according to an LSEG consensus estimates from six analysts, helped by a weaker yen and robust demand for hybrid vehicles in the United States.

During the first six months of this year, the automaker's global production fell 5% while worldwide sales dipped 0.9%.

Both sales and production figures include the luxury Lexus brand.