Toyota Group's global production, including that of its subsidiaries Daihatsu and Hino, grew by 4.8% year on year (y/y) in January as output rose in both its domestic and overseas markets.
IHS Markit Perspective:
- Significance: Toyota's group-wide global production volumes surged 4.8% year on year (y/y) to 840,083 units during January. By brand, output grew by 1.7% y/y for Toyota, 33.8% y/y for Daihatsu, and 6.6% y/y for Hino.
- Implications: January was the third consecutive month of increase for the group's output, both in the domestic and overseas markets. Although domestic output of the Toyota brand declined during the month, encouraging figures for the Daihatsu brand helped push up overall domestic volume. Meanwhile, all three brands reported higher overseas production volume during the month.
- Outlook: According to IHS Markit's production data, total Toyota Group (including Daihatsu and Hino) production – including light vehicles and medium/heavy commercial vehicles – will reach nearly 10.38 million units in 2017 (up 3.6% y/y).
The Toyota Group, including subsidiaries Daihatsu Motor and Hino Motors, reported its worldwide production figures January today (27 February). According to data released by the automaker, group-wide global vehicle production surged 4.8% year on year (y/y) to 840,083 units during January. On a unit basis, worldwide output of the Toyota brand grew 1.7% y/y to 724,898 units. The group's other two subsidiaries also posted growth during the month: Daihatsu Motors' output was up by 33.8% y/y to 101,116 units and Hino Motors' production grew by 6.6% y/y to 14,069 units.
Regionally, growth surged in both domestic and overseas markets for the group. Domestic output rose 1.6% y/y to 329,935 units on a group-wide basis in January. Japanese production of Toyota-brand vehicles during the month declined 3.7% y/y to 249,821 units, while Daihatsu, the company's minivehicle arm, posted a considerable gain of 27.4% y/y to 69,073 units. The brand posted its ninth consecutive month of increase. Meanwhile, Hino's domestic output during the month slipped 0.5% y/y to 11,041 units, the first decline in three months.
The group's overseas output increased 7% y/y to 510,148 units. By brand, Toyota's overseas production grew 4.8% y/y to 475,077 units in January, its first improvement in two months. This growth stemmed from increased production in regions such as North America, Latin America, Europe, and Africa. Daihatsu's overseas output surged 50.1% y/y to 32,043 units in January, a ninth consecutive monthly gain. This significant growth can be attributed to higher output in Indonesia. Hino's overseas production grew by 43.6% y/y to 3,028 units last month, mainly on the back of increased output in Asia. This was a 10th consecutive monthly rise for the brand.
Outlook and implications
January was the third consecutive month of increase for the group's output, both in the domestic and overseas markets. Although domestic output of the Toyota brand declined during the month, encouraging figures for the Daihatsu brand helped boost overall domestic volume. Meanwhile, all three automakers reported higher overseas production volume during the month.
The group's full-year worldwide output rose 1.3% y/y to over 10.21 million units during 2016. Of this total, overall domestic production reported flat results with 4.035 million units (down by 0.01% y/y), while overseas production was up 2.3% y/y to around 6.17 million units, the first increase in two years and also a record high. Toyota, which sells about one-quarter of its vehicles in Japan, came under pressure in the first half of 2016 when it faced additional challenges in the form of supply-chain disruption caused by fire and earthquakes in southern Japan. Nevertheless, the automaker resumed the affected assembly operations in May and June.
Meanwhile, Toyota's minivehicle arm Daihatsu benefited from the fuel-economy scandal that dented Mitsubishi's domestic sales and production of minivehicle models after April 2016. Daihatsu was the leading player in the minivehicle segment during 2016 and posted sales of 580,115 units, although this figure was down 4.7% y/y, according to the Japan Mini Vehicles Association. The brand continued to lead the category in January 2017 as well.
Last month, the Toyota Group released its sales and production targets for 2017, predicting largely flat sales and production compared with 2016. According to IHS Markit's production data, total Toyota Group (including Daihatsu and Hino) production – including light vehicles and medium/heavy commercial vehicles – will reach nearly 10.38 million units in 2017 (up 3.6% y/y). The variance between our figures and Toyota's is accounted for by different counting methodologies. IHS Markit will conduct a detailed analysis of the performances of these Toyota brands in 2017 in each of the top-selling markets in the coming months.
The automaker also signed a memorandum with Suzuki last month to begin formal talks to collaborate on technical development. The collaboration would cover issues such as environmental, safety, and IT technologies, as well as the mutual supply of products and components.
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.