Toyota January Production & Sales Take Off Despite Chip Woes

Toyota Motor Corp. TM stated that total sales rose 4.4% Y/Y to 831,161 vehicles, while total production declined 3.8% Y/Y to 788,670.

Global production of Toyota (including Lexus) increased by 7.4% to 740,332 vehicles in January 2024. The increase marked 13 consecutive months of year-on-year growth.

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Toyota (including Lexus) brands’ worldwide production benefited from strong demand in North America, with Overseas production reaching a record high in the month. 

Continuing from last month, North America production was up Y/Y due to strong demand and semiconductor shortages trending toward recovery. 

Global sales for Toyota (including Lexus) grew 10.5% Y/Y to a record high level of 784,527 vehicles, led by sales outside of Japan (+15.9% Y/Y), partly negated by sales in Japan (-13.7% Y/Y) in January.

In January, sales in the U.S. (including Hawaii) surged 23.3%, and Europe grew 2.0% Y/Y, while domestic sales declined 13.7% Y/Y owing to tough comparables and the impact of shipment suspensions of Daihatsu OEM vehicles. 

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Also, sales in China (including Macau and Hong Kong) rose 39.2% Y/Y thanks to the difference in dealer business days associated with the Lunar New Year, despite stiff competition.

Apart from this, Toyota stated that it has decided to resume production of Inabe Production line #1 and Gifu Auto Body Production line #1 on March 4 with engines from TICO after the Ministry of Land, Infrastructure, Transport, and Tourism announced lifting the shipment suspension of diesel engines manufactured by TICO.

Price Action: TM shares are trading lower by 0.23% at $237.49 premarket on the last check Wednesday.

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