Toyota Motor Corp’s sales and production fell in November, weighed down in large part by a sharp drop in China as the country discontinues subsidies meant to boost the sales of electric and fuel-efficient cars.
Global sales – including at subsidiaries Daihatsu Motor Co and Hino Motors – fell 1.9 per cent in the period from a year earlier to 965,919 units, the Japanese carmaker said Thursday. Production shrank 3.4 per cent to 934,001 vehicles.
Global automakers are facing greater uncertainty as they navigate an environment of trade tensions, regulatory changes and uncertain economic outlooks. Toyota’s results serve as a barometer for the industry’s struggle to balance strong long-term demand with short-term economic and policy headwinds.
Toyota and Lexus brand sales in China fell 12 per cent in November, the company said, citing the end of trade-in subsidies in major cities as funds ran dry. The figures were released against a backdrop of diplomatic tensions that have been brewing between China and Japan since November, when PM Sanae Takaichi made remarks about Taiwan that angered Asia’s biggest economy. China responded by warning its citizens against traveling to Japan. Toyota’s production in Thailand climbed 15 per cent last month and 9 per cent in the US, but fell 14 per cent in China, 9.7 per cent in Japan and 7.9 per cent in the UK.
The EU’s decision this month to pull back an effective ban on combustion engines appeared to offer more flexibility to legacy carmakers seeking to mass-produce battery-powered cars.
