Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Toyota cuts production at all plants in Japan to adjust to a global drop in demand. The company has reduced operating days, shifts and halted production line to cut vehicle production by 122,000 units in June amid the COVID-19 crisis. The company announced that they are likely to further curtail production and make continual gradual adjustments across all 15 plants in Japan.


Toyota will halt production at five of its production lines for four days (Fridays) in June. The company has also decided to minimise operations from double shifts to single shifts for some plants. This practice would continue through August. The production cut in June would represent a 40pc decline from the prior year output. In June 2019, Toyota produced 289,544 units in Japan. Toyota’s Q1 production declined by 9.4pc to 380,308 units.


Japan has extended its COVID-19 lockdown till May 31 with certain relaxations. The country’s auto sales is forecast to fall in 2020 by 15pc, according to Moody’s. Japan is facing a huge dip in steel demand with auto and infrastructure sectors badly hurt by the pandemic.

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