Toyota's Turnaround with 'North America Production Effect'... Record High Production in November

8 Japanese Companies' November Production Down 5%
Nissan's China Production Plummets Due to COVID-19
Toyota Achieves Record Production Thanks to US Output Increase

[Asia Economy Reporter Lee Ji-eun] Last month, the global production volume of eight Japanese automakers decreased by 5% compared to the same month last year, with only Toyota achieving a record-high production performance. This was largely due to the expanded production capacity in North America. However, uncertainties such as COVID-19 and semiconductor supply issues remain, making it difficult to predict whether Toyota will meet its production target of 9.2 million units this year.

The Nihon Keizai Shimbun reported on the 26th that the global production volume of the eight Japanese companies in November was 2,079,000 units, marking a decline for the first time in six months. Nissan recorded the largest drop among the eight companies, with global production falling 23% year-on-year to 248,000 units. Mitsubishi Motors and Honda saw decreases of 13% and 12%, respectively.

In contrast, Toyota produced a total of 833,104 units in November, setting an all-time record for global production. This is attributed to a slight easing of the ongoing vehicle semiconductor supply issues since last year and the effect of increased production capacity in the North American region. Currently, Toyota operates 12 complete vehicle parts factories in the United States and Canada.

Suzuki Motor's global production volume also increased by 5% year-on-year to approximately 271,000 units. Nihon Keizai explained that "this was largely due to the production of low-cost vehicles in India that use fewer automotive semiconductors."

Toyota Motor Corporation. [Image source=Yonhap News]

The overseas production volume of the eight companies recorded 1,352,000 units, down 8% year-on-year. In particular, Nissan and Honda's overseas production volumes decreased by 32% and 17%, respectively, driving the overall production decline. Nissan, affected by COVID-19, began adjusting production and produced only 48,002 units in China last month. This represents a 63% drop compared to 131,704 units produced in the same month last year. Honda's Dongfeng Honda plant in Wuhan, China, halted operations for two days last month, resulting in a 30% decrease in production volume in China. Honda's production volume in China last month was 94,582 units.

The domestic production volume of the eight companies increased by 2% to 726,000 units, recording a lower figure compared to the same month last year. Nihon Keizai explained, "All companies are accelerating production aiming to increase output compared to the previous year in response to strong new car demand, but supply is not keeping up with demand."

Nihon Keizai pointed out that supply chain issues caused by COVID-19 continue, making it difficult to guarantee sustained production growth for Toyota as well. Although the severe semiconductor shortage has somewhat eased, the supply shortage is not expected to be fully resolved until 2024.

Toyota also lowered its production target for the 2022 fiscal year (April 2022 to March 2023) from the initially set 9.7 million units to around 9.2 million units earlier last month. According to Nihon Keizai, Toyota and Honda plan to adjust production operations at some domestic plants in January next year due to semiconductor supply shortages.

Major foreign media reported that Toyota recently notified some parts suppliers to prepare to produce 9.5 million units in this fiscal year, which would require increasing production by 12% over the next six months compared to the previous six months.

This content was produced with the assistance of AI translation services.