Business / Corporate

Toyota's output to recover to 10% drop in July, beating projections

Kyodo

Toyota Motor Corp. said Monday its domestic production volume in July is expected to recover from what is projected for June, thanks to the resumption of economic activities in Japan following the end of national state of emergency over the novel coronavirus.

Toyota now sees about a 10 percent drop in July production against an initial plan made at the end of last year. The rate compares with an estimated 40 percent decrease in June, according to the automaker.

Toyota plans to halt six lines at three vehicle plants for a total of 16 days in July, an improvement from an estimated suspension of 25 production lines at 14 plants for a total of 133 days the previous month.

As the coronavirus dented demand and restricted people’s movements, Toyota has suspended some of its plant operations, causing its output in Japan to fall 25.9 percent to 218,054 units in April and 13.2 percent to 279,065 units in March.

Its results for May have yet to be released.

The figures do not include vehicles sold by its subsidiaries, small-car manufacturer Daihatsu Motor Co. and truck maker Hino Motors Ltd.

Toyota’s domestic production plans are influenced by global demand, as it exported around 60 percent of some 3.41 million vehicles made in Japan last year.

The carmaker has said it expects the sales drop due to the coronavirus to have bottomed out in April and that sales will gradually recover to levels seen a year earlier toward the end of this year.

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