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Toyota’s global production falls 0.6 percent in July due to fierce price war in China

Toyota Motor Corp. said on Thursday that its global production fell 0.6 percent to 804,610 units in July from the same period last year, citing weaker production in China, where the automaker faces strong price competition from domestic brands.

Toyota’s production outside Japan fell 1.0 percent to 495,492 vehicles, as an increase in North America and Europe was offset by a 9.6 percent decline in China.

Domestic production rose by 0.1 percent to 309,118 cars. The resumption of production of the Prius hybrid car in mid-June, which had been suspended due to a recall, offset the production halts of three other models following the recent vehicle registration scandal.

The automaker’s global sales fell 0.2 percent to 857,982 units as sales declined in North America, where there were fewer business days in the reporting month, and in China, where locally made, cheaper electric vehicles are gaining popularity.

In Italy, the number doubled due to government subsidies, but was not enough to offset losses in the two largest car markets. Overall, foreign sales fell by 0.1 percent to 717,629 units.

In Japan, there was a decline of 0.6 percent to 140,353 vehicles as production of three models, including the popular SUV Yaris Cross, was discontinued, Toyota said.


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By Olivia

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