- Sales Breakdown
- Impact of Temporary Factory Shutdowns in Japan
- Comparing Market Trends: China, the U.S., and Japan
- Strategic Adjustments for the Future
On February 27, Japanese automaker Toyota announced its global production and sales data for January 2025. The data reveals that Toyota produced 781,700 units globally, marking a 6% year-on-year increase—the first such growth in a year. Meanwhile, global sales reached 785,600 units, reflecting a modest 0.1% increase compared to the previous year.
Sales Breakdown
Toyota's production growth in January was driven by an increase in domestic market capacity. Production in Japan rose by 22.3% year-on-year to 266,000 units. However, overseas production declined by 1.4% to 515,700 units, with manufacturing in the U.S. and Canada continuing a downward trend.
In terms of sales, Toyota saw a 12.5% year-on-year increase in the Japanese domestic market, reaching 126,500 units in January. In contrast, sales in overseas markets declined by 1.9% to 659,100 units.
Impact of Temporary Factory Shutdowns in Japan
Despite Toyota’s positive production performance in January, external factors briefly affected operations. On February 19, Toyota announced a temporary shutdown of 14 factories in Japan due to highway congestion caused by heavy snowfall. Ten factories, with a total of 20 production lines, resumed operations by the evening of the same day, while the remaining four factories, with six production lines, resumed normal operations on February 20. However, this temporary disruption did not significantly impact overall production in the Japanese domestic market.
Comparing Market Trends: China, the U.S., and Japan
As the world’s largest automaker, Toyota sold 10.82 million vehicles globally in 2024, representing a 3.7% year-on-year decline. Despite the decrease, Toyota maintained its position as the top-selling automaker for the fifth consecutive year.
Toyota’s sales in Japan reached 1.44 million units in 2024, down 13.8% year-on-year. In China, its third-largest market after the U.S. and Japan, sales totaled 1.776 million units, a decline of 6.9% year-on-year.
Global production also declined in 2024, falling 7.8% year-on-year to 10.615 million units. This was largely due to factory shutdowns resulting from certification violations and intensified competition in the Chinese market.
On January 24, Toyota set a 2025 global production target of nearly 10 million units, with 3.4 million units planned for Japan and approximately 6.6 million units for overseas markets.
Strategic Adjustments for the Future
In response to labor shortages and the need to expand EV production, Toyota is restructuring its domestic production base over the next decade. According to a report by Yomiuri Shimbun on January 13, the company plans to shift production capacity by 2030, with full restructuring expected to be completed by 2035. Toyota will reduce annual production in central Japan by 20% to 1.8 million units while increasing production in northeastern and southern Japan by 50% each to around 600,000 units.
As part of its strategic focus on China, Toyota has also made significant management changes. In January, Toyota China’s official website announced that Lexus China Executive Vice President Li Hui was promoted to General Manager of Toyota China. This marks the first time in Toyota’s history that a non-Japanese executive has held this position, signaling the company’s commitment to deeper localization in the Chinese market.
Investments in China: New EV and Battery Facility
On February 5, Toyota and Lexus announced the establishment of a new Lexus pure electric vehicle and battery R&D and production company in Jinshan District, Shanghai, China.
Toyota has officially registered Lexus (Shanghai) New Energy Co., Ltd., which was established on February 18 with a registered capital of 107.1 billion yen. The company is fully owned by Toyota Motor Corporation and will be led by Kato Takero. The new facility will leverage Shanghai and the Yangtze River Delta’s advanced industrial ecosystem, logistics network, and talent pool to develop new Lexus-branded pure electric models, with production planned to begin in 2027.
Toyota’s Financial Performance
On February 5, Toyota released its earnings report for the third fiscal quarter. The report showed an operating profit of 1.22 trillion yen, down 28% year-on-year. Net profit, however, increased by 62% year-on-year to 2.19 trillion yen, while net sales rose 2.9% to 12.39 trillion yen.
For the full fiscal year, Toyota expects an operating profit of 4.70 trillion yen and a net profit of 4.52 trillion yen.
