Toyota Motor Corporation reported an eighth consecutive month of declining global production in September, largely due to decreased sales and production in its two major markets: the United States and China. The company’s global output for the month dropped by 8% compared to the same period last year, totalling 826,556 vehicles. Production in the United States fell by 14%, while output in China declined by 19%.
In the U.S., production suffered due to a temporary halt in manufacturing and delivery of the Grand Highlander and Lexus TX SUVs. This pause was initiated because of an airbag issue, though Toyota confirmed that production resumed for these models on October 21.
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Meanwhile, in China, Toyota has been challenged by intense competition from local brands shifting aggressively towards electric vehicles (EVs) and plug-in hybrids. As a result, Toyota has seen its market share affected by this growing demand for EVs, which are increasingly favoured by Chinese consumers.
Global sales for Toyota were also down in September, with a 7% year-over-year drop to 853,149 vehicles. Sales in the U.S. plunged 20%, while China saw a 9% decrease, and domestic sales in Japan slipped by 6%.
For the first nine months of 2024, Toyota reported total vehicle sales of 7.4 million, marking a 2% decline year-over-year as the automaker continues to navigate challenges across its key markets.
