TOKYO – Toyota’s (NYSE: TM) global production tumbled in June, down for a fifth straight month with the automaker hit hard by a certification scandal in its home market and a fierce price war in China.
Output worldwide for Japan’s biggest automaker slid 12.9% to 795,862 vehicles, the sharpest decline since December 2022.
In its home market, output plunged 18.8% after the transport ministry found irregularities in applications by Toyota (NYSE: TM) and other automakers to certify certain models in a widening of an auto safety scandal.
In China, where domestic electric vehicle makers like BYD have rapidly gained market share and have aggressively cut prices, production fell 21.7% – marking the fifth month in a row where Toyota’s output has declined by 20% or more.
Production in North America fell 6.2% while in Europe it dropped 6.6% due to fewer production days compared to last year.
Toyota’s worldwide sales fell 5.1% during the month, hurt by declines in Japan and China.
The automaker is due to report first-quarter financial results on Thursday. It is expected to log a 21% rise in operating profit from a year earlier to 1.35 trillion yen ($8.7 billion), according to an LSEG consensus estimates from six analysts, helped by a weaker yen and robust demand for hybrid vehicles in the United States.
During the first six months of this year, the automaker’s global production fell 5% while worldwide sales dipped 0.9%.
Both sales and production figures include the luxury Lexus brand.
($1 = 154.0800 yen)
(Source: ReutersReuters)
