Japan’s Toyota Motor Corp. has decided to lower its global target production this year by about 500,000 units from about 10.3 million units to about 9.8 million units, the Nihon Keizai Shimbun (Nikkei) reported on the 9th.
Toyota reportedly produced a record 13.0 million units last year, and production is expected to decline year-on-year this year for the first time in four years since 2020, when COVID-19 spread due to a downward revision of its target.
Toyota has decided to produce 3.2 million units in Korea and 6.6 million units abroad this year, respectively, and delivered the plan to major parts makers.
The target production for next year and 2026 is expected to be less than 10.2 million units and 10.7 million units, respectively.
Nikkei pointed out that Toyota’s downward revision of production was due to a series of certification irregularities and sluggish sales in the Chinese market.
Toyota suspended production of three models, including Corolla Fielder, which was suspended from shipping by the government on June 6 after it was found to have cheated in the process of obtaining quality certification.
Japan’s Ministry of Land, Infrastructure and Transport found additional misconduct related to Toyota’s quality certification in seven models and issued a corrective order last month calling for fundamental improvement.
In addition, Toyota, which has focused on hybrid and gasoline vehicles, is struggling in China, where electric vehicle sales have soared, which has also affected the downward revision of production, the newspaper analyzed.
SOPHIA KIM
US ASIA JOURNAL
