Toyota Motor Corporation announced Thursday that its global sales and production had reached record levels in the fiscal year ending March 31, driven by robust demand and the absence of semiconductor supply constraints that had affected the industry in recent years.
In the fiscal year ending March, Toyota reported that its global sales for the parent company alone increased by 7.3% to 10.31 million units year-on-year, surpassing the 10 million mark for the first time. Production also saw a significant uptick, reaching 9.97 million units, up 9.2% from the previous year.
Despite these achievements, Toyota has decided to postpone the start of its electric vehicle (EV) production in the U.S. and reduce domestic production to ensure product safety and quality following a series of scandals at its group firms, as reported by the Mid-Japan Economist newspaper.
In March, Toyota experienced a decline in both sales and production, attributed to intense competition in China, the world’s largest auto market. Global sales in March dropped by 2.1% from the previous year to 897,251 units, while production declined by 10.3% to 807,026 units.
One notable highlight for Toyota was the significant increase in global battery EV sales, which surged more than threefold to 116,654 units in the fiscal year ending March.
Regarding its EV production plans, Toyota intends to postpone the start of production in the U.S. to the spring of 2026, a year later than originally planned. This decision is part of the automaker’s strategy to intentionally introduce a “pause” period in its business operations to ensure quality and safety.
Toyota officials were not immediately available for comment on these developments.
Despite these achievements, Toyota’s shares were trading down about 3% at 3,509 yen in mid-afternoon trading in Tokyo, reflecting broader market conditions and potential investor reactions to the delay in EV production plans.
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