31 minutes ago
Business
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.