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Quality scandal sends Toyota global output down for 1st time in 4 years
JAPAN TODAY   | April 25, 2025
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Toyota Motor Corp said Thursday its global production for the year ended March fell 2.9 percent from a year earlier to 9.68 million units, marking the first decline in four years, following a quality-related scandal.
In fiscal 2024, global sales edged down 0.3 percent to 10.27 million units, after the automaker was found to have failed to fully comply with government vehicle safety testing standards, it said.
But for March alone, worldwide production rose 9.1 percent from a year earlier to 880,476 units and sales grew 7.9 percent to 968,442 cars, as buyers rushed to make purchases ahead of expected auto tariffs under U.S. President Donald Trump.
The scandal also weighed on domestic output in the last fiscal year, which fell 2.2 percent to 3.24 million cars, with production of some popular models briefly stopped. Overseas output slid 3.3 percent to 6.44 million units.
The automaker sold 1.51 million cars in Japan, down 1.6 percent from a year earlier. Overseas sales were almost flat at 8.77 million cars.
A recall of the Prius hybrid also affected both global sales and production, Toyota said.
By region, production and sales in North America were flat at 2.07 million units and 2.73 million units, respectively, as the impact of a recall of some models was offset by robust demand for hybrids.
In China, where Toyota faces severe price competition from local brands, output fell 7.8 percent to 1.55 million cars while sales were down 5.9 percent to 1.79 million vehicles.
Combined global production by Japan's eight major automakers fell 4.8 percent in fiscal 2024 from a year earlier to 24.17 million units, falling for the first time in three years, according to data released by the companies.
The fall in output came as their sales declined in China and some manufacturers were forced to partly suspend production following quality scandals similar to Toyota's.
Total global sales for the automakers decreased 1.3 percent to 24.65 million vehicles, they said. U.S. sales rose in March ahead of the anticipated imposition of additional auto tariffs.
Toyota sold 231,336 units in the country, up 7.7 percent, while Honda Motor Co. saw a 13.2 percent increase to 147,792 cars. Mazda Motor Corp. and Subaru Corp. recorded double-digit rises.
© KYODO
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