Friday , December 27 2024

Global production declined, but sales provided relief


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The global production of Japan’s leading automobile manufacturer Toyota Motor has declined for the 10th consecutive month in November 2024. This month the company manufactured a total of 8,69,230 vehicles, which is 6.2% less than last year. This decline is greater than October’s 0.8% decline. However, rising demand in the US and China has boosted sales for the second consecutive month. Let us understand this situation in detail.

Decline in production in America

  • Decline: Production declined by 11.8% in November.
  • Reason:
    • Four-month halt on production of Grand Highlander and Lexus TX SUVs.
    • Production resumed in late October 2024.

Production and sales situation in China

  • Decline: 1.6% decline in production, which is better than October’s 9% decline.
  • Positive aspects:
    • Strong sales of the Granvia and Sienna minivans.
    • High demand for bZ3 electric sedan developed with BYD.

production decline in japan

  • Decline: 9.3% decline in production.
  • Reason:
    • Production stopped for two days in some plants.
    • The impact of the shortage was felt most strongly in Japan, which accounts for one-third of Toyota’s global production.

Global sales improvement

  • November 2024 Sales:
    • A total of 9,20,569 vehicles were sold, an increase of 1.7%.
    • This is a record so far for November.
  • January-November 2024 figures:
    • Production: Down 5.2% from last year, totaling 8.75 million vehicles.
    • Sales: Decline of 1.2%.

New strategy in China

Due to increasing competition from BYD and other local brands in China, Toyota has formulated a new strategy:

  • New plant in Shanghai:
    • Production of electric vehicles for the Lexus brand will begin from 2027.
  • Electric Sedans and Minivans:
    • Focus will be increased on electric models like bZ3.

Signs of relief to Toyota

Although the continued decline in production is a concern, the improvement in global sales is a positive sign for the company.

  • With new strategies and focus on electric vehicles, Toyota looks ready to face the challenges of the future.
  • Considering the demand in major markets like China and America, the company will have to focus on improving its models and technology.