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Toyota Group reports 4.3% y/y growth in March global output, Q1 production up 7.5% y/y




Toyota Group's global production, including that of its subsidiaries Daihatsu and Hino, grew by 4.3% year on year (y/y) in March mainly on the back of higher overseas output.

IHS Markit Perspective:

  • Significance: Toyota's group-wide global production volumes surged 4.3% year on year (y/y) to 993,024 units during March. By brand, output grew by 1.6% y/y for Toyota, 27.9% y/y for Daihatsu, and 11.9% y/y for Hino.
  • Implications: March was the fifth consecutive month of increase for the group's output. Although domestic output of the Group slipped during the month it was still up 7.2% y/y to over 1.1 million units for the year to date (YTD) period. Overseas production continued to post positive figures in March and in the YTD period with over 1.6 million units (up 7.7% y/y) as all three automakers reported higher production volumes.
  • Outlook: According to IHS Markit's production data, total Toyota Group (including Daihatsu, Hino, Lexus, Subaru, and Toyota) production – including light vehicles and medium/heavy commercial vehicles – will reach nearly 10.32 million units in 2017 (up 2.9% y/y).

The Toyota Group, including subsidiaries Daihatsu Motor and Hino Motors, reported its worldwide production figures for March today (27 April). The group recorded a 4.3% year-on-year (y/y) increase in its global vehicle output to 993,024 units during March. According to data released by the automaker, year-to-date (YTD) global production now totals over 2.70 million units, a 7.5% y/y increase.

On a unit basis, worldwide output of the Toyota brand grew 1.6% y/y to 855,364 units. The group's other two subsidiaries also posted growth during the month: Daihatsu Motors' output was up by 27.9% y/y to 120,031 units and Hino Motors' production grew by 11.9% y/y to 17,629 units.

The overall y/y growth can be mainly attributed to increased overseas output of Toyota-brand vehicles in regions such as Latin America, Europe, Asia, Australia, and Africa, which grew by 1.6% y/y to 855,364 units. Meanwhile, Daihatsu, the company's mini-vehicle arm, posted a gain of 28.8% y/y to 30,176 units. Daihatsu's overseas production levels were helped by increased output in Indonesia which helped the volumes to grow for an eleventh consecutive month. After Japan, Indonesia is home to most of Daihatsu's production. Hino's overseas production grew 57.3% y/y to 3,666 units, a twelfth consecutive month thanks to higher output in Asia. Together, the three companies posted gain of 7.8% y/y to 588,504 units in overseas output during the month.

Toyota's domestic output slipped 0.4% y/y to 404,520 units on a group-wide basis in March. Production of Toyota-brand vehicles during the month declined 6.7% y/y to 300,702 units in Japan, while Daihatsu, the company's minivehicle arm, posted a considerable gain of 27.7% y/y to 89,855 units. The brand posted its 11th consecutive month of increase. Meanwhile, Hino's domestic output during the month grew 4% y/y to 13,963 units, the second consecutive month of increase.

Outlook and implications

March was the fifth consecutive month of increase for the group's output. Although domestic output of the Group slipped during the month, overall it remained up 7.2% y/y to over 1.1 million units for the YTD period. According to IHS Markit production data, addition of new models such as the Toyota Roomy and Daihatsu Justy at the Ikeda 2 plant in October 2016 and Toyota C-HR at the Kanto Iwate plant in November 2016 contributed in pushing the domestic volume in recent months. Overseas production continued to post positive figures in March and in the YTD period with over 1.6 million units (up 7.7% y/y) as all three automakers reported a higher production volume.

For the full 2017, Toyota Group expects largely flat sales and production compared with 2016 figures. According to IHS Markit's production data, total Toyota Group (including Daihatsu, Hino, Lexus, Subaru, and Toyota) production – including light vehicles and medium/heavy commercial vehicles – will reach nearly 10.32 million units in 2017 (up 2.9% y/y). The variance between our figures and Toyota's is accounted for by different counting methodologies.

Earlier this month, Toyota announced that it will invest USD1.33 billion into updating its assembly plant in Georgetown (Kentucky, United States). The investment will upgrade Toyota Motor Manufacturing Kentucky (TMMK) to produce vehicles on the Toyota New Global Architecture (TNGA). Toyota's statement said the 2018-model-year Camry would be the first Toyota vehicle made in the United States to "fully incorporate the new vehicle development and production technology". The plant will be upgraded for TNGA vehicles and to modernise and streamline production, with an all-new paint shop and updated equipment. The plant is Toyota's largest globally, with 8,200 employees, and produced more than 500,000 units in 2016. Including a previously announced USD530 million investment to support output of Lexus vehicles at the plant, Toyota has announced investment of USD1.86 billion into the facility over the past four years.

About this article

The above article is from IHS Automotive Same-Day Analysis of automotive news, events and trends, and is a deliverable of the World Markets Automotive Service. The service averages thirty stories per day and also provides competitor and country intelligence. Get a free trial.