Slowing Sales In China Prompt Toyota To Scale Back Tianjin Production: Report

Japan's automotive giant Toyota Motor Corp (NYSE: TM) is reportedly suspending production partially at its plant in Tianjin, China, in response to the intense sales competition in the world's largest automobile market.

Toyota's decision reflects a broader adjustment in production to align with the declining demand for gasoline-engine cars, reported Reuters, citing the Jiji news service.

Last month, Toyota informed dealers of its plan to continue reduced output at the joint venture facility with FAW, extending cuts initially planned for October and November by an additional three months, as per the report, which cited a letter dated November 3.

The slowdown in China sales poses significant challenges for Toyota, contrasting with its solid demand in other key markets like Europe and North America.

China, accounting for nearly 20% of Toyota's global sales of approximately 8.5 million vehicles in the first 10 months of 2023, including its Lexus brand, has seen a downturn in sales and production compared to the previous year.

The top three bestselling models in China during the first nine months of the year were all electric vehicles, as per the report that quoted data from the China Association of Automobile Manufacturers.

Also Read: Toyota's Financing Arm Hit With $60M Penalty: CFPB Cracks Down On Unlawful Loan Practices

Price Action: TM shares are trading higher by 0.64% at $191.00 premarket on the last check Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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