Toyota’s output in China falls by 19 per cent amid growing EV competition

WEB DESK: Toyota has revealed that its global production dropped for the eighth month in a row, reflecting hurdles it is currently facing in the US and Chinese markets.

The Japanese automaker made only 826,500 vehicles in September, about 8 per cent down as compared to the same month last year.

The situation was especially challenging in the US, where production slipped 14 per cent. Output wasn’t far behind in China with even bigger drop of 19 per cent.

The decline in US was partly owing to a production halt for the Grand Highlander and Lexus TX SUVs, following an airbag issue. However, the company resumed production of the same models on October 21.

Toyota is grappling with intense competition in China from local brands as the market leans more towards electric cars and plug-in hybrids.

Sales figures also mirror the production slump with global sales in September falling by 7 per cent to 853,149 vehicles. US sales took a sharp hit, down 20 per cent, while China recorded a 9 per cent drop and domestic sales slid by 6 per cent.

So far, Toyota has sold 7.4 million vehicles in the first nine months of 2024, a 2 per cent decrease from the same period last year.

This total also includes sales from its luxury Lexus brand. It’s proving to be a challenging time for one of the world’s leading automakers.

Read next: $500 million ADB loan to support Pakistan’s fight against climate change