Toyota’s Global Output Gained in August as Covid Impact Eases

Masumi Suga, Bloomberg News

A visitor looks at a Toyota Motor Corp. Lexus LX600 vehicle at the company's showroom in Toyota City, Aichi Prefecture, Japan, on Monday, June 13, 2022. Toyota will hold its annual shareholders' meeting on June 15. , Bloomberg

(Bloomberg) -- Toyota Motor Corp.’s global output rose for the first time in five months in August, led by gains in overseas markets -- in particular Southeast Asia, where a Covid surge disrupted supply chains a year ago.

The world’s biggest automaker made 766,683 vehicles in August, up 44% from a year earlier, according to a statement Thursday. Global sales rose 3.8% to 777,047 units, the first increase in 12 months, the Japanese automaker said.

While Toyota still faces a shortage of semiconductors and is battling lingering supply-chain constraints stemming from the pandemic, the situation has improved from 12 months ago when Covid cases were higher, causing factory shutdowns that led to a dearth of parts. Toyota has stuck to its production target of 9.7 million vehicles for the fiscal year through March 2023.

What Bloomberg Intelligence says:

Toyota’s sales, profit and cash flow could exceed pre-pandemic times, while net debt may be lower -- potential catalysts for the company to reclaim its prior Aa/AA tier ratings in the intermediate term.

Toyota’s output in Japan in August rose 5.6% from a year earlier to 196,038 units, also the first increase in five months, according to the statement.

Toyota was up 0.4% as of 2:55 p.m. in Tokyo. The shares are down about 7% this year.

Meanwhile, Nissan Motor Co. said its global output rose for a second month in August, climbing 9% from a year earlier to 288,218 vehicles. However, sales fell 16% to 254,842 units. Honda Motor Co.’s global output rose 27% to 347,661 units, the third consecutive month of gains, according to a statement.

(Updates with Nissan, Honda numbers in final paragraph.)