Toyota’s Domestic Car Production to Keep 12,000 Units/Day for Oct-Nov

Toyota Motor is likely to plan domestic production of completed car at around 12,000 units per day for October-November. The production would decrease from current 14,000-unit level due to cease of Japanese governmental program to stimulate purchase of eco friendly cars at the end of September. Meanwhile, the production is expected not to decrease as much as previously concerned. Local coil centers in Nagoya area are relieved.

Toyota’s domestic car production is estimated to keep around 14,000 units per day until the end of September thanks to the governmental stimulus programs. Local coil centers’ operating rate is presently as high as around 90%.

In and after October, domestic car production is likely to downturn due to the end of the governmental programs. In July, Toyota unofficially announced the production would be 11,400 units or less per day in October. Local coil centers were concerned on worse profitability. One coil center said their breakeven point is at 12,000-unit level and Toyota’s announcement for October is severe.

At August announcement, Toyota revised up the outlook for October to above 12,000 units and the production is expected to keep the level in November. Toyota’s output adjustment would be moderate for October-December against the market’s expectation. Meanwhile, one coil center showed a concern on volume down in January-March.