Toyota Reports Record Global Sales and Production for First Half of FY2024 Amid Easing Semiconductor Shortages

Toyota's stellar performance credited to easing chip shortage, robust demand in US and weaker yen; however, concerns over weaker market conditions in Southeast Asia and sluggish growth in China may pose challenges.

Toyota Motor reported record global sales and production for the first half of FY2024 due to the easing of semiconductor shortages and strong market demand in the US, marking a significant rebound from the impact of the global supply chain crisis.
The company sold 7.5 million units in the first nine months of the year, including their Lexus brand, reflecting an increase of approximately 7% compared to the same period last year.
Toyota's domestic production surged by approximately 27% within the first nine months of the year compared to 2022, highlighting the company's effective response to last year's chip and part supply challenges.
Despite record-breaking performance, Toyota expressed concern over softer market conditions in Southeast Asia and a slowly growing market in China, which could pose future challenges for the auto manufacturer.
The weaker yen currency also had a positive impact on Toyota's earnings, boosting the value of its overseas sales. However, the company's analysts warn that a potential rise in manufacturing and labor costs could make sales challenging by next year.