Toyota Motor Corporation plans to cut Toyota production by about 100,000 vehicles outside Japan through February 2027, Nikkei Asia reported.
The company linked the cuts to weaker demand, higher fuel costs and shipping disruption around the Strait of Hormuz. Toyota has informed key parts suppliers about the revised output plan.
The cuts cover models, including petrol-powered versions of the RAV4 SUV and Avalon sedan. Toyota will also reduce output of the bZ3X, bZ7 and Camry for the Chinese market, Nikkei Asia reported.
Toyota had earlier planned to cut overseas production by about 83,000 vehicles between June and November. The latest revision lifts the planned reduction to around 100,000 units through February next year.
Toyota had targeted an output of about 10 million Toyota and Lexus vehicles in the fiscal year ending March 2027. Nikkei Asia said that the target marked a 1% year-on-year increase. The company also aimed for a net profit of about USD 18.6 billion.
Toyota already cut domestic output of Middle East-bound vehicles by about 40,000 units in March and April after the disruption around the Strait of Hormuz. The Strait of Hormuz disruption followed military strikes on Iran by the United States and Israel.
The disruption affected tanker traffic and pushed fuel prices higher. It also weakened vehicle demand in China, the Middle East and other markets.
Nikkei Asia said a preliminary agreement aimed at resolving the conflict improved the outlook for reopening the shipping route.
Consumers have continued to delay purchases because energy costs remain high, the report said.
Read: Toyota Unveils First Hybrid Land Cruiser for North American Market
Toyota plans to raise domestic production in Japan by 4,200 vehicles in the second half of the fiscal year. The increase compares with the company’s May plan, according to Nikkei Asia.
Toyota will raise domestic output of the RAV4 and Land Cruiser 250 SUV. It will trim Lexus ES sedan production for China because of softer demand.
The Toyota production cuts also reflect stronger competition in China’s electric vehicle market, where domestic manufacturers have gained ground.
