Skip to content
Automotive

Toyota Sees July Global Output Down 10% On Initial Plan

By Minjun Park
1 min read
Toyota
Toyota
In this article (5)

Toyota Motor Corp said on Monday it would make 10% fewer vehicles next month than originally planned, as it gradually resumes output following factory closures earlier this year due to the coronavirus pandemic.

The Japanese automaker said it planned to make 71,000 fewer vehicles globally in July than its original goal of about 700,000. While production has yet to return to normal, the July reduction is smaller than the 20% output cut for June.

“We expect the recovery trend to continue in August,” a spokesman said.

Global automakers are trying to get their plants back up and running after many were closed earlier this year to curb the spread of the virus.

Toyota Motor, Japan’s biggest automaker, said on Tuesday it expects its lowest annual operating profit in nine years, down over 4 billion US dollars, or 80%, from the previous year.

For the April-July period, Toyota anticipates a global production drop of 30% from its initial plans, made before the virus outbreak and a plunge in demand for vehicles.

The automaker produced nearly 3.7 million vehicles during the same period last year.

At home, Toyota plans to make 39,000 fewer vehicles in July, or 10% less than initially planned.

It will stop making its Coaster minibus model for six days, while lines producing the Land Cruiser and Prado SUV models, and the Porte subcompact, will stop for two days. These adjustments will affect six production lines at three of the automaker’s plants.

Second shifts at some of these plants will remain canceled, potentially until September. In total, Toyota operates 28 production lines at 15 vehicle factories in Japan.

Toyota will also cancel some Saturday shifts next month on four lines that produce models including its popular RAV4 SUV crossover model and the Prius gasoline hybrid, many of which are exported overseas.

Questions & Answers

Q.

How many fewer vehicles does Toyota plan to make globally in July compared to its original target?

A.

Toyota plans to make 71,000 fewer vehicles globally in July than its original goal of about 700,000. This represents a 10% reduction from what was initially planned for the month.

Q.

What is Toyota's global production drop anticipation for the April-July period?

A.

For the April-July period, Toyota anticipates a global production drop of 30% from its initial plans. These plans were made before the virus outbreak and the subsequent decline in vehicle demand.

Q.

Which Japanese models will have production adjusted in July?

A.

Production of the Coaster minibus model will stop for six days. Also, lines producing the Land Cruiser, Prado SUV models, and the Porte subcompact will cease production for two days.

Q.

How many of Toyota's Japanese production lines are affected by these adjustments?

A.

These adjustments will affect six production lines at three of Toyota's plants in Japan. Second shifts at some of these plants may remain cancelled potentially until September.

Reader pulse

How will Toyota's output cuts impact Q3 sales?

19,428 votes so far

Weekly Briefing

Asia's retail intelligence, in your inbox

Tuesday, Thursday and a Saturday Weekly Wrap: the retail stories, numbers and moves that mattered across Asia. Nothing else, and you can unsubscribe in one click.

  • Top industry moves and market shifts
  • Weekly data-driven analysis from across Asia
  • Tuesday, Thursday and the Saturday Weekly Wrap

Read by retail operators, investors and brand teams across Asia.

Protected by a quick human check. No spam, ever. Unsubscribe in one click.

SecureGDPR ready