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Toyota reports first global production increase in a year amid recovery efforts

Despite the production gains, Toyota’s global sales remained flat.

Toyota Motors reported a 6% year-over-year increase in global production for January, marking its first output growth in a year. The automaker’s recovery was primarily fueled by a strong rebound in domestic manufacturing, which offset declines in overseas production.

Toyota’s domestic production surged 22% as the company ramped up operations in Japan following last year’s certification scandal, which had impacted output. This increase helped counteract a drop in overseas production and stabilize the automaker’s global performance.

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In January, Toyota’s output in North America rose 3%. Strong demand helped mitigate the effects of severe snowfall and other weather events throughout the country. While production in the United States and Canada declined, Mexico had a significant boost, helping to balance regional output. The automaker produced approximately 26,500 vehicles in Mexico, marking a nearly 3.5 increase compared to the same period last year. This surge was mainly due to strategic production shifts that resulted in a major year-over-year increase.

Despite the production gains, Toyota’s global sales remained flat. A 13% rise in domestic sales helped balance a 14% decline in China and a 1% drop in U.S. sales. Although North American demand remains strong, weather-related disruptions presented significant challenges to maintaining sales momentum.

Toyota’s ability to rebound from past setbacks and strengthen domestic production underscores its resilience in a competitive global market. With supply chain improvements and strategic manufacturing shifts, the automaker is positioning itself for continued stability and growth in the months ahead.

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