Toyota Motor Corp (NYSE: TM) reported a 6% year-on-year increase in global vehicle production for February, driven by a strong rebound in domestic output.
The automaker produced 779,790 vehicles during the month, marking a 5.8% rise compared to the same period last year. This is the second consecutive month of growth, supported by a 16% surge in domestic manufacturing. The increase follows a recovery from a certification scandal that had previously disrupted operations.
Meanwhile, overseas production remained nearly unchanged, with less than a 1% uptick.
Global sales also climbed 6%, fueled by strong demand in Japan and key international markets. However, North American production dipped by 1%, and exports from Japan to the U.S. saw a similar decline.
These developments come as the U.S. government moves to impose new trade restrictions. On March 26, President Donald Trump announced a 25% tariff on all imported automobiles and parts, set to take effect on April 2. The tariffs are intended to strengthen domestic manufacturing but have raised concerns about supply chain disruptions and higher costs for automakers, including Toyota.
As of 05:20 GMT, Toyota’s shares were down 4.7% amid investor concerns over the potential impact of the tariffs.
Industry analysts caution that Toyota, which operates extensive manufacturing facilities in the U.S., may need to reassess its production and export strategies in response to these policy changes.
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