Toyota to maintain stable auto production over Sept-Nov

Toyota’s media relations officials declined to comment on the matter on Tuesday, but the automaker is reported planning to produce 300,000 units in September and October, and 290,000 units in November, or equivalent to about 13,000 units/day over the next few months, being higher than the 12,500 units/d in August, Toyota’s auto parts suppliers in Nagoya and traders confirmed.

It turning out to the be case, Toyota’s domestic production will be back to the normal level, as its daily production averaged around 13,000-14,000 units/day a year ago, Mysteel Global noted.

“We understand that Toyota’s vehicle production will return to the normal level starting September, which means their steel consumption will stabilize too, great news to the steel producers in Japan,” a steel trader in Nagoya added.

Toyota’s domestic auto manufacturing plan over Aug-Nov

Source: Japanese auto parts suppliers

Toyota’s domestic auto production bottomed in May in line with the sharp declines in demand when the economic activities had been curtailed with the COVID-19 outbreak, but the company has stepped up the production since July on the demand recovery, as reported.

Toyota’s domestic production in May totaled 122,744 units, down 57% on year and 43.7% lower from April, though its June output recovered 30.3% on month in June, and its production plan for July increased further to 260,000 units, as reported.

Japan’s steel coil centers supplying steel to auto makers have been ramping up their output to match the higher demand from the domestic auto makers, and the capacity utilization rate of the coil centers in Tokai area, central Japan where many of auto related plants are located, also bottomed out from May’s 39.5% to 56.4% in June, according to the latest data by the Zenkoku Coil Center Kogyokai (ZCCK), an association of 96 coil centers across Japan. 

The capacity utilization rate among the coil centers in Tokai averaged 95.5% over April-September 2019, according to ZCCK data.

“We are still operating at a lower rate compared with a year ago, but we will lift it gradually in accordance with higher auto productions, and we will need to procure more sheets from steel producers as a result,” a sales official from Tokai-based coil center shared.

For June, carbon steel booking by the Japanese auto sector totalled 239,666 tonnes, down 65.3% on year and down 17.4% on month, while the booking of special steel totalled 165,694 tonnes, down 54.4% on year but up 7.1% on month, as special steel deliveries needs a longer lead time, as reported.

Toyota is operating 15 auto manufacturing plants in Japan with 28 assembly lines, but the total capacity is unknown, according to the company. 

Written by Yoko Manabe, yoko.manabe@mysteel.com

Edited by Hongmei Li, li.hongmei@mysteel.com