Toyota’s global production fell sharply in June, marking its fifth consecutive month of decline as the company faced significant challenges from a certification scandal in Japan and intense price competition in China. The automaker’s worldwide output dropped by 12.9% to 795,862 vehicles, the steepest decline since December 2022.
In Japan, production plummeted by 18.8% following the discovery of irregularities in certification applications by the transport ministry, which has expanded an ongoing auto safety scandal. In China, where domestic electric vehicle manufacturers like BYD have aggressively cut prices and gained market share, Toyota’s output decreased by 21.7%. This represents the fifth consecutive month in which Toyota’s production in China has dropped by 20% or more.
Production in North America fell by 6.2%, while Europe saw a 6.6% decrease due to fewer production days compared to the previous year. The company’s global sales also declined by 5.1%, impacted by lower sales in Japan and China.
Toyota is scheduled to report its first-quarter financial results on Thursday, with analysts predicting a 21% increase in operating profit to 1.35 trillion yen ($8.7 billion), driven by a weaker yen and strong demand for hybrid vehicles in the U.S. For the first half of the year, Toyota’s global production fell by 5% and worldwide sales dipped by 0.9%, with both figures including the luxury Lexus brand.
