Toyota output declines for ninth consecutive month amid production issues

In October 2023, Toyota Motor Company experienced a significant decline in global output for the ninth consecutive month. The Japanese automaker's production fell by 0.8 percent, totaling 893,164 vehicles, compared to an 8 percent decline in September. Notably, production numbers were adversely affected in the United States and China, where output tumbled by 13 percent and 9 percent, respectively. The United States faced specific challenges due to a prolonged production halt of SUV models Grand Highlander and Lexus TX, prompted by an airbag issue, and production only resumed on October 21. Meanwhile, competition against local brands continued to pressure Toyota’s output in China, which saw a decrease in sales. Adding to the struggles, Toyota also reported a 13 percent reduction in production in Thailand as demand remained soft. Despite these declines, Toyota noted a modest recovery in global sales, which increased by 1.4 percent to a record 903,103 vehicles for October. This uptick marked the first rise in sales after five months of reductions, with production numbers from Japan contributing positively. Specifically, production in Japan increased by 8 percent, rebounding from historically low figures caused by a supplier-related accident the previous year. Additionally, production in Canada and Mexico showed slight improvements of 2 percent each. These mixed results underscore the ongoing challenges the automotive giant faces in balancing production issues with maintaining sales amidst competitive pressures across various markets.