Toyota Motor Corporation experienced a decline in global sales and production for April compared to the previous year, attributed to a fierce price competition in China and setbacks in Japan stemming from a model production stoppage and a safety test scandal at its compact car division.
The global sales decreased by 0.5% in April, with a significant 27% downturn in China, offsetting the double-digit growth in the United States and Europe. Despite promotional efforts in China, Toyota faced challenges in the competitive market environment. Furthermore, Japanese automakers are under pressure from the increasing demand for electric vehicles and plug-in hybrids from Chinese brands.
In Japan, Toyota’s sales were impacted by the temporary suspension of Prius model production at the Tsutsumi plant for quality inspections and a partial stoppage at a Toyota Auto Body plant producing Noah and Voxy minivans, alongside repercussions of the Daihatsu small car scandal.
The top global automaker reported a 4.0% decline in global production, with reduced output in key markets like China, Japan, Thailand, and Mexico overshadowing increased production in the US and India. Toyota also faced production interruptions in Tijuana, Mexico, affecting the Tacoma pickup truck manufacturing, as reported by Reuters earlier this year.
