AutoBeta(AutoBeta.net)08/31 Report--

According to NHK and other media reports, affected by Typhoon No. 10 this year, a total of 28 production lines at Toyota Motor's 14 domestic factories in Japan will continue to stop production until the morning of September 2, when it will be judged whether to resume work in the afternoon. Prior to August 28, Toyota announced a temporary shutdown of all factories in Japan, which is expected to be from the evening to the morning of the 29th.

In addition to Toyota, Honda has temporarily closed its plant in Kumamoto, southwest of Kyushu, and Nissan's Kyushu plant was shut down on Thursday and Friday. Mazda suspended operations at its plants in Hiroshima and Yamaguchi prefecture in western Japan from Thursday night.

Super Typhoon Yamashi made landfall in Kyushu, Japan on the 29th, causing torrential rains in the south of the country, killing at least six people and injuring more than 120, Japan Broadcasting Association Television reported. On the evening of August 30, the typhoon weakened into a tropical depression, and its wind is now weakening further.

The shutdown means that all Toyota plants in Japan's home market have been suspended, and it is the first time Toyota has suspended operations at all factories in Japan since August 2023. On the morning of August 29, 2023, due to a system failure, a total of 12 of Toyota's 14 vehicle factories in Japan were suspended, involving a total of 25 production lines. Starting in the afternoon, the shutdown will be extended to all 14 vehicle factories, a total of 28 production lines. It did not resume operation until Aug. 30, but the brief shutdown eventually led to a reduction in production of about 14000 new cars.

It is understood that local factories in Japan account for about 1/3 of Toyota's annual output. As of press time, it is not clear whether Toyota will be able to restart production in its Japanese home market on the afternoon of September 2. it is also unclear what impact the shutdown will have on Toyota's follow-up production capacity.

On August 29th Toyota released global production and sales figures for July. On the production side, data show that Toyota's global production in July was 804600 vehicles, down 0.6% from a year earlier, marking the sixth consecutive month of decline in Toyota production. Within the market segment, Toyota's production in its Japanese home market rose slightly by 0.1 per cent to 309100 vehicles, mainly due to the re-production of the Toyota Prius in Japan, as well as 6.2 per cent growth in North America and 3.4 per cent in Europe. By contrast, Toyota's production in China fell by 9.6 per cent.

On the sales side, Toyota sold 858000 vehicles worldwide in July, down 0.2 per cent from a year earlier. Segmented into major markets, Toyota sold 140300 vehicles in its home market in Japan, down 0.6% from a year earlier, and 717600 in overseas markets, down 0.1% from a year earlier. In addition, sales in China were 143400, down 6.1 per cent from a year earlier.

Even though Toyota's production and sales figures are not satisfactory, Toyota's revenue and operating profit reached record highs in the April-June second quarter of this year (the first quarter of fiscal 2025). Of this total, Toyota's global revenue was 11.84 trillion yen ($73.6 billion), up 12.2% from a year earlier; operating profit was 1.31 trillion yen ($8.15 billion), up 17% from a year earlier; and net profit was 1.33 trillion yen ($8.27 billion), up 1.7% from a year earlier.

Earlier, Toyota had cut its global car production plan for fiscal year 2024 from 10.3 million to 9.8 million, less than 10 million for the first time in four years. Of these, 3.2 million vehicles are produced in Japan's domestic market and 6.6 million vehicles are produced overseas. Industry insiders believe that Toyota's production cut reflects the pressure it faces in the global market, particularly in China, where Toyota is generally under pressure with the rapid rise of its own brands. Toyota's sales in China fell significantly in the first seven months of this year, falling 10.1 per cent from a year earlier to 928100 vehicles, according to the data. As Toyota's most important market in the world, the decline in sales in China has also put pressure on Toyota's overall global sales.

The typhoon "Shanshan" caused Toyota to shut down all factories will have any impact, the follow-up "automotive industry attention" will also continue to pay attention.

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