Toyota Hits Global Production High With 11.52M Vehicles In 2023, Yet Daihatsu And Hino Motors Raise Red Flags

Toyota Motor Corporation TM reported a production of 11.52 million vehicles in the past year, marking a third consecutive annual increase, up by 8.6% year over year.

Production inside Japan jumped 18% year over year to 4.31 million vehicles. Production outside Japan rose 3.6% year over year to 7.21 million vehicles.

The company’s total sales in 2023 totaled 11.2 million vehicles, up 7.2% year-over-year.

In December 2023, global production and sales reached record highs due to solid demand in each region, in addition to easing semiconductor shortages in each region.

However, governance concerns surround Toyota’s Daihatsu and Hino Motors units, involving certification tests for cars and engines, posing a risk to the brand’s global reputation for quality and safety, Reuters reported.

“I would like to express my deepest apologies to our customers and stakeholders for the inconvenience and concern caused by the successive irregularities at Hino Motors, Daihatsu and Toyota Industries,” Toyota Chairman Akio Toyoda told reporters at an event, which Reuters noted.

Last week, Toyota issued an immediate advisory against driving certain model year 2003-2004 Corolla, 2003-2004 Corolla Matrix, and model year 2004-2005 RAV4 vehicles in the U.S. This decision is a part of the ongoing Takata airbag recalls. Approximately 50,000 vehicles are affected by this advisory.

Read Next: Double Trouble For Toyota? 10 Models Grounded In New Suspension Shock After Daihatsu Debacle

Price Action: TM shares are trading lower by 0.38% to $200.90 in the premarket session on the last check Tuesday. 

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