(CTN News) – In June, Toyota‘s worldwide output dropped for the fifth consecutive month, as the carmaker was severely impacted by a certification controversy in its home market and a heated pricing battle in China.
Both of these factors contributed to the decline. The largest automobile manufacturer in Japan had its global production drop by 12.9%, reaching 795,862 units. This was the most significant drop since December 2022.
After the transport ministry discovered inconsistencies in applications submitted by Toyota and other automakers to certify specific models, the company’s production in its domestic market dropped by 18.8 percent.
This was a further development in a controversy involving the safety of automobiles.
There has been a reduction of 21.7% in production in China, where Chinese electric car manufacturers like BYD have aggressively lowered prices and swiftly grabbed market share. This is the sixth month in a row that Toyota’s output has decreased by 20% or more.
Because there were fewer working days compared to the previous year, output in North America decreased by 6.2%, while production in Europe decreased by 6.6%. During the month, Toyota’s global sales dropped by 5.1%, with decreases in Japan and China being the primary contributors.
The automobile manufacturer is scheduled to release its financial results for the first quarter on Thursday.
As a result of a lower yen and healthy demand for hybrid cars in the United States, it is anticipated that it will record a 21% increase in operating profit from the previous year, reaching 1.35 trillion yen ($8.7 billion), according to an LSEG consensus estimate from six analysts.
During the first half of this year, the automobile manufacturer saw a decline of 5% in global production while seeing a decrease of 0.9% in global sales.
Sales and production numbers for the upscale Lexus brand are included in both categories.
Dollars equal 154.0800 yen.
Source: Yahoo News
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