Toyota Motor plans to produce 10.5 million vehicles worldwide in 2027, including Lexus, as hybrid demand rises and total output moves above ten million units.
According to a report from Nikkei Asia, the production plan has been shared with major parts suppliers.
Output in Japan is expected to total at least 3.5 million vehicles, above the three million-unit benchmark Toyota maintains to preserve manufacturing capabilities and employment at its domestic operations.
Global hybrid sales increased 4% year-on-year (YoY) to 2.33 million units in the first half of 2026, with governments adjusting electric vehicle policies and hybrid demand rising in the US and Europe.
Toyota’s global hybrid sales are projected to exceed five million units for the first time in fiscal 2026.
The company plans to start producing next-generation hybrid batteries in 2027 or 2028 by converting production lines in Japan to support capacity equivalent to 600,000 units.
Toyota is pursuing a "multi-pathway" strategy, offering vehicles suited to different regional and customer needs, while keeping a line-up that includes electric vehicles for demand across global markets.
For 2026, Toyota plans to produce just over 9.9 million vehicles worldwide.
Toyota said global sales in June 2026 edged down YoY to 926,688 units, including Lexus and Daihatsu.
Sales in Japan rose almost 10% to 194,295 units, while overseas sales dropped 2.5% to 732,393 units, affected by the conflict in the Middle East and rising competition in global markets.
In the first six months of 2026, group global sales declined 2.3% to 5,362,598 units.
Sales in Japan increased 5.3% to 1,085,752 units, while overseas sales fell 4.1% to 4,276,846 units.
The figures exclude sales by Japanese truck maker Hino, which was spun off from the group at the end of March 2026.
Toyota also reported net income of Y1.47tn ($9.32bn) for the first quarter of its 2027 financial year, up 75.6%, and raised its FY2027 guidance.
Consolidated sales revenue for the three months to 30 June 2026 was Y13.52tn, up 10.4% YoY, while operating income fell 8.8% to Y1.06tn.
