Home Stock Market Toyota stops some operations in Tianjin due to poor sales, says Reuters.

Toyota stops some operations in Tianjin due to poor sales, says Reuters.

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Toyota stops some operations in Tianjin due to poor sales, says Reuters.

Toyota Halts Production at Some Lines in China Amid Weak Sales

Planned Production Halt at Tianjin Venture with FAW

Toyota Motor has temporarily halted production on some aging lines at its joint venture in China with FAW, but operations continue as normal, the Japanese automaker announced. The production halt is part of a planned move to adjust production based on changes in the composition of vehicle models, a spokesperson explained via email.

Optimizing Production System

According to the spokesperson, the reason for stopping the production line was to optimize the production system in consideration of aging and changes in the composition of vehicle models such as body types.

Response to Weak Sales of Gasoline-Engine Cars

Japan’s Jiji news service reported that Toyota was suspending some production as part of a major production adjustment in response to weak sales of gasoline-engine cars. This move comes after Toyota informed dealers last month that it would extend a plan to reduce output at the FAW venture.

Challenges in the Chinese Market

Slowing sales pose a growing challenge to Toyota in China, a market that accounted for nearly a fifth of Toyota’s worldwide sales over the first 10 months of the year. This includes sales of its luxury Lexus brand, making it a crucial market for the automaker.

To combat the impact of weak sales, Toyota is making strategic decisions to adjust production and optimize its operations. The company remains committed to addressing market challenges and ensuring sustainable growth in the region.