The global automobile crisis does not affect all manufacturers in the same way. Of the greats, Toyota is one of those that is best dodging the impact of the lack of components and the war in Ukraine, it is on track to be the largest manufacturer for the third consecutive year.
At the time, Toyota made history by snatching from General Motors the number one position as a vehicle manufacturer, which the Americans had held for decades. They have also stepped on them in the United States market. Since 2010, only volkswagen has jeopardized that classification. This year doesn’t look like it will be.
Taking into account Toyota’s sales during the first four months of 2022, production has fallen by 5.8% compared to the same period in 2021. The previously planned production record target could not be achieved, but the Damage has been fairly contained.
If you combine the sales of Toyota, Lexus, Daihatsu and Hinoadd up 3,429,636 units Worldwide. There have been 692,370 units in Japan (-16.3%), where they control 46.2% of the market, and 2,737,266 units in the rest of the countries. This last figure has only dropped by 2.7%, which is very significant.
Toyota can afford to make “low-demand” cars like the GR86, which generalists have all but given up on
Volkswagen has had many problems in the first quarter. On the one hand, in Europe it has suffered the consequences of the war in Ukraine, which has left it without certain components and the production of certain components has been interrupted. What they have missed the most have been the Leoni wiring harnesses.
On the other hand, in China they have suffered closures decreed against the COVID outbreak. Toyota has also had problems in this regard, but to a lesser extent. However, Toyota has had eight consecutive months of reduced sales volume year-on-year due to parts problems.
The Japanese manufacturer has worked closely with its suppliers to adjust the pace of production to what was possible, trying not to be left with factories stopped due to lack of parts. Compare with the drop in sales of the Volkswagen Group, 26% less than in the first quarter of 2021 also combining all its brands.
Toyota’s crossover range also wins fans and maintains good volumes
Regarding another of the metrics, that of productionToyota has also contained a lot of damage. With a total of 3,474,706 units, the figure has only fallen 2.3% year-on-year. Breaking it down, there were 1,275,570 units in Japan (-12.4%) and 2,199,136 units in the rest of the world (+4.7%). It almost made up for one thing with the other.
In fact, going into detail, Toyota/Lexus production outside Japan was 2,009,839 units, 3% more. The Daihatsu division managed to produce 175,268 vehicles in the quarter, 27.5% more. Finally, Hino increased its production to 14,029 units, 38% more.
A large part of Japanese production is exported, thus we have that 585,046 Toyotas and Lexus left Japan for other countries, 7.3% less, and 21,930 Hino trucks, 3% less. The Daihatsu have not been exported. Total, 606,976 units exported, 7.1% less compared to the first quarter of 2021. With which it is falling, it is a very contained volume reduction.
Another segment where Toyota maintains its presence is in the European A-segment, practically abandoned by the main generalists, and without electrified versions.
In terms of finances, it is also noteworthy that at the end of fiscal year 2021/2022, which ends in March, Toyota had a net profit of 2.85 trillion yen, 26.9% more than in 2020/2021. Let us bear in mind that in 2021 the Japanese group sold 10.34 million vehicles, 10.2% more than in 2020.
Already in the worst year of the pandemic, Toyota managed to save a lot of money by cutting costs, so that the fiscal year 2020/2021, despite the 15% drop in sales in the main brand and 5.1% in the others, the benefit increased by 10.3%. In 2020, Toyota overtook Volkswagen for the first time in five years.
It is clear that Toyota is weathering the crisis better than the other major manufacturers, maintaining large volumes and more importantly, profits. Being able to maintain high production figures allows the manufacturer not to raise prices as much as others, something that customers will surely be noticing when buying a Toyota, Lexus, Daihatsu or Hino first hand.