Toyota Motor Corp announced on Thursday, November 27, that its global production had increased for the fifth month in a row in October. The increase was driven by a strong surge in demand in the United States (US), especially for hybrid vehicles, despite the decline in sales in key markets such as Japan and China.
The latest data from the Japanese automaker, reported by Reuters, Friday, November 28, shows total global production rose 4 percent from the previous year to 926,987 cars.
Meanwhile, global sales are also continuing a positive trend, recording a tenth consecutive monthly increase, advancing 2 percent to 922,087 vehicles. These production and sales figures include models under the luxury Lexus brand.
The US Becomes A Growth Machine
The United States, which is the largest market for Toyota, acts as the main motor driving this growth.
Toyota production in the US jumped 26 percent in October or recorded a double digit increase over five consecutive months. This sharp increase was triggered by persistent demand for their hybrid model, as well as production recovery which was delayed in two models last year.
Meanwhile, in its home country Japan, Toyota's domestic production rose 7 percent in October. However, sales on the Japanese market fell 4 percent compared to the same period last year, although the company did not disclose the reason for this decline.
Then in China, Toyota is experiencing challenges in the world's largest market. Production in China has fallen 6 percent and sales have fallen 7 percent, mainly due to the end of vehicle subsidies programs in several regions.
Hybrid Leads Portfolio Electrification
Cumulative data show Toyota's electrification strategy which is still dominated by hybrids. During the first 10 months of this year (January to October), Toyota has sold 8.7 million vehicles as a whole. Of these, the hybrid model accounts for 42 percent of total sales.
In contrast, the pure battery-based electric car (BEV) model still fills a very small portion of Toyota's sales, which is below 2 percent of the cumulative total.
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