Toyota slashes output target

Toyota slashes output target

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A report released on October 23, 2012 said that Toyota Motors will cut its target of producing more than 10 million vehicles this year. The production of the vehicles will be cut after the company suffered a drop in sales in the key automobile market of China.

The Japanese based company had a target to top the ten million mark this year, which would have been a first for the company. The automobile company announced earlier this year that it expected the global output to reach 10.5 million vehicles in the year 2012. However, sales in China have been affected due to the dispute over the East China Sea island chain. Many other auto companies have also scaled back their production in the country.

This year, the annual global production was likely to be 9.8-9.9 million units of Toyota. Despite solid demand from North America and Southeast Asia, sales were not enough to compensate for the downfall in the Chinese market. Toyota has cut production by almost half, and the company now plans to keep output at about 30 percent lower than the levels that were reached last year. A spokesperson from Toyota said that they will not be releasing any official target figure for global production this year.