Toyota Extends Output Cut in China as EV Competition Intensifies and Sales Decline

Production set to be reduced for an additional three months due to declining market share, competitive EV pricing by rivals, and a 9% drop in sales to dealers in the first nine months of the year.

Toyota is extending the production cut in its joint venture in China for an additional three months due to a severe market environment, continuing to reduce car sales to Toyota dealers to 66,000 units in December, 60,000 units in January, and 38,000 units in February.
The production cut comes as Toyota faces intense competition from market leaders, BYD and Tesla, who have continually slashed their EV prices, and a 9% drop in sales to dealers in the first nine months of the year.
Despite still ranking third after BYD and Volkswagen in auto sales in China, Toyota is losing market share, with competitors like BYD increasing their sales by 60% within the same nine-month period.
As Toyota struggles to gain a foothold in the EV market, the company initiated layoffs in a joint venture with China’s GAC after the electric SUV, bZ4X, failed to gain traction despite a 15% price drop in February.
Toyota's hesitance toward EVs is being highlighted as a mistake as EV makers continue to gain market share in China, where the transition to electric vehicles has left companies like Nissan and Honda also struggling, demonstrating the market isteleompetitive than ever.