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Daily Newsletter

31 October 2023

Daily Newsletter

31 October 2023

Toyota global vehicle output rises 10% in first half of FY

Rebound from supply shortages drives strong first half output gain for Toyota

David Leggett October 31 2023

Toyota Motor Corporation has announced its global vehicle production increased by over 10% year-on-year to 5.74 million units in the first half of the current fiscal year, between April and September 2023, as Japan’s leading automaker rebounded from last year’s supply chain shortages.

This includes an almost 13% rise in Toyota-Lexus output to 5.06 million units, while Daihatsu production fell by over 5% to 606,348 units and Hino output was down by close to 14% at 73,530 units.

Overall production in Japan, which was hit hardest by last year’s semiconductor shortages, rebounded by 31% to 1.69 million units while exports increased by 23% to 1.06 units. Overseas production increased by just over 5% to 3.37 million units.

Global sales rose by over 8% to 5.16 million units in the six-month period, with Toyota-Lexus deliveries rising by 9% to 5.17 million units and Daihatsu sales increased by just under 2% to 358,283 units, while Hino sales fell by 11% to 65,512 units.

Last week Toyota resumed full production at its plants in Japan after it was forced to suspend operations at 14 production lines in six plants for up to one week after an explosion at a plant of a key supplier of suspension components halted supplies.

High upfront costs could be detrimental towards the growth of the off-highway EV market

The global off-highway electric market is expected to grow at a CAGR of 17.4% by 2030, per GlobalData. Despite the strong growth, high upfront costs may pose a challenge. Due to the high capacity of these vehicles, they consume large amounts of power from a number of battery packs installed on the vehicle, whose high cost in turn adds to the cost of the vehicle, thereby increasing the initial cost. However, governments worldwide are offering subsidies and tax exemptions in order to help customers to counter the initial purchase cost.

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