Toyota Motors, the largest auto company in the world, is taking hit after hit with the company soon looking at losing their reputation because of a two-third drop in production rate in March because of the earthquake and subsequent tsunami. This is because of the fact that they are facing a shortage of mostly resin-based and electronic parts.
Toyota had already stated that they would take till the year end before they could fully recover their normal production output. The company reportedly saw a fall in domestic production to 129,491 units, almost 62.7 %, while the No.2 auto company in Japan, Nissan, said that their corresponding figures decreased by 47,590 units to 52.4 %. Honda, another Japan auto giant also said that they saw their domestic production shrink by 34,754 vehicles to 62.9 %.
According to recent reports, Toyota is currently almost certain about losing their ranking as top producer, which they have held from 2008, to GM this year. Toyota managed to sell 8.42mn vehicles last year, topping the sales of GM which were 8.39mn. Experts project that GM is likely to produce more than 8mn vehicles, and VW will manufacture around 7mn, so it is likely, that Toyota will not just lose its top position, but also be third, with GM coming in at first place.
Toyota’s sub-index of transport equipment had reportedly bounced by 14 % from its post-quake low, however it is still 6 % from where it stood before the earthquake struck Japan. In contrast, though, South Korea based Hyundai Motors surged by over 30 % in the same period last week, hitting a record high on expectations that the company would benefit from the problems of their Japanese rivals.