2020 has not been a good year for automakers around the world. Worse yet, some manufacturers even had to adjust their financial forecasts for FY2019-20.
Not even automotive giants like Toyota Motor Corporation were spared from the effects of the coronavirus pandemic. Toyota recently released its global sales and production figures for the fiscal year of 2019-2020, and the numbers aren’t good.
The Japanese automaker recorded a global sales decrease for the first time in eight years. In the first quarter of 2020 alone, Toyota’s worldwide sales have dropped by 10.7% as compared to that of 2019 with only 2,064,989 units sold. While the effects in Japan weren’t as bad (-5.1%) with 422,084 units sold, sales outside of Japan saw a decrease of 12.1% at 1,642,905 units.
Ever since January 2020, Toyota has continued to experience a decrease in sales worldwide. Last March, the automaker had their third consecutive month of lower sales; specifically, sales were down by 23.8% when compared to the same month in 2019. Considering most countries around the world were on lockdown last month, the majority of the decrease came from sales outside of Japan (29.1%).
Aside from sales, Toyota also reported a decrease in worldwide production. Last month the automaker suspended vehicle and parts production in North America. At the same time, the company announced that operations in some plants will temporarily be suspended in April due to the current market situation and decrease in demand. For the fiscal year 2019-2020, Toyota recorded a 2.2% decrease in production and marked the automaker’s first year-on-year decrease in two years. Specifically, it got worse in Q1 2020 as worldwide production dropped by 13.6% when compared to the same period in 2019.
Though Toyota’s figures were hit in the 2019-2020 fiscal year, the automaker could still turn the tide on FY2020-21. European governments are starting to relax lockdown regulations, and some automakers have already restarted production. The rest depends on the recovery of the global economy.