May Arthapan, Director, Asia Pacific Forecasting
12 November 2019
12 November 2019
Toyota: An outlier performance amid global industry downturn
Toyota Group (Toyota) has thrived over the last two years, in defiance of the industry downturn. While Light Vehicle production in Asia-Pacific is on course to drop by 6% year-on-year in 2019, mainly as a result of output declines in China and India, Toyota’s production volume is expected to grow by 5% in the same period. In contrast, eight of the top ten automakers in the region will suffer volume declines this year, with most of these decreases, unsurprisingly, coming from China and India.
“we expect Toyota to increase production by 3% year-on-year in 2019, compared to a 5% drop in overall global Light Vehicle production over the same period”
Toyota is currently Asia’s largest automaker and the second largest in the world. Globally, we expect Toyota to increase production by 3% year-on-year in 2019, compared to a 5% drop in overall global Light Vehicle production over the same period. New model activity – notably the success of the redesigned Corolla and RAV4 – has contributed to the group’s positive performance amid the challenging global market environment.
“The continued popularity of the Yaris, RAV4, and hybrid models like the Levin (along with its sister model Corolla) have provided a solid foundation for volume growth”
Even in China, where we expect Light Vehicle production to contract by nearly 8% this year, following a 4% drop in 2018, Toyota is on track to grow its volume by 8% this year, on top of a 16% increase in 2018. The continued popularity of the Yaris, RAV4, and hybrid models like the Levin (along with its sister model Corolla) have provided a solid foundation for volume growth. The addition of the C-HR and the IZOA in 2018, and the Avalon earlier this year could not have come at a better time.
Toyota is also set to increase production in Japan, which remains the group’s largest production base, by 8% year-on-year in 2019. New model activity has significantly boosted production in the group’s home market, especially when it comes to exports.
As the saying goes, however, all good things must come to an end. Toyota’s run on successful product cycles is no exception as we anticipate a 1% decline in the group’s global Light Vehicle output next year.