Toyota Motor Corp. (TM) has announced a decline in its global production for the tenth consecutive month in November, despite a rise in worldwide sales. The Japanese automaker produced 869,230 vehicles globally in November, marking a 6.2% decrease from the same month last year. This decline is more significant than the 0.8% dip recorded in October. The production drop is attributed to equipment inspections and fewer operating days at some domestic plants, as well as a two-day production halt at its Fujimatsu and Yoshiwara plants in Japan.

In the United States, Toyota's production fell by 11.8%, although the production of the Grand Highlander and Lexus TX SUV models resumed in late October after a four-month stoppage. In China, production decreased by 1.6%, an improvement from the previous month's 9% decline, thanks to higher local sales of the Granvia and Sienna minivan models and the electric sedan bZ3, developed jointly with BYD Co Ltd. (002594.SZ).

Despite the production challenges, Toyota's global sales rose by 1.7% to 920,569 vehicles, setting a new record for November. This increase was driven by strong demand in North America, where sales grew by 4.1%, and a recovery in China, where sales increased by 7.0% to 175,983 units. The rise in sales is attributed to government subsidies and promotional efforts in China, despite intense competition in the electric vehicle market.

Toyota's decision to build an independent plant in Shanghai to manufacture electric cars for its Lexus luxury brand by 2027 reflects its strategic response to the growing competition from Chinese brands like BYD. The company's global output from January to November was 5.2% lower than the same period last year, totaling around 8.75 million vehicles, while global sales were down 1.2%.

The production and sales figures include vehicles from Toyota's Lexus brand but exclude those from group companies Hino Motors Ltd. and Daihatsu. Toyota's ongoing production challenges highlight the broader issues facing the automotive industry, including supply chain disruptions and the transition to electric vehicles.