Toyota Confidently Raises 2025 Global Production Target to 10 Million Units

LienAug 05, 2025, 12:08 PM

[PCauto] Toyota has raised its global production target for 2025 to approximately 10 million units, up from the 9.9 million figure previously set with suppliers earlier this year. The revision reflects strong demand for hybrid models in key markets such as the United States, Japan, and China, as well as a resurgence in sales within the Chinese market—boosting Toyota’s confidence in future market performance.

Highest Production Target in Nearly Two Years

Despite uncertainties posed by U.S. trade policies, Toyota is working to optimize its global supply chain in a bid to return to its record-setting production level of 10.03 million units achieved in 2023.

The upward adjustment is closely tied to its recent sales and positive market feedback. In 2023, Toyota’s global output crossed the 10-million-unit mark for the first time, driven largely by the easing of semiconductor shortages.

As of the first half of 2025, Toyota recorded 5.159 million units in global sales—maintaining its position as the world’s top-selling automaker in the sixth year.

According to company data, sales of electrified vehicles—including hybrids—exceeded 1 million units in 2025 so far, marking a 53% year-on-year increase. This underscores sustained consumer interest in hybrid options. In contrast, the rollout of battery electric vehicles (BEVs) remains relatively slow, prompting Toyota to prioritize the expansion of its hybrid production capacity.

Previous Challenges from U.S. Tariff Policy

The 25% tariff under current U.S. President Trump posed a significant short-term challenge for Toyota, resulting in an estimated $1.3 billion USD in losses. However, a newly concluded U.S.-Japan trade agreement has reduced the tariff rate to 15%, providing much-needed relief and greater flexibility for Toyota.

Focus on Key Regions in pursuit of the 10 Million Unit Goal

In the U.S., Toyota is scaling up production of electric SUVs such as the bZ4X at its Kentucky plant, with a goal of exceeding 10,000 units per month by the end of 2025.

Meanwhile, a new battery plant in North Carolina is scheduled to enter production in 2025, aimed at strengthening the local supply chain and reducing tariff-related risks.

Asia is another strategic focus. In China, Toyota’s joint ventures—FAW Toyota and GAC Toyota—have a combined annual production capacity of over 2 million units. These facilities are accelerating the shift toward hybrid (HEV) and battery electric (BEV) vehicles.

In Southeast Asia, plants in Thailand and Indonesia are undergoing transformation to meet rising regional demand for EVs, with efforts focused on localized production to reduce dependence on imports.

In addition, Toyota is enhancing its semiconductor and battery supply chains across Europe and emerging markets, aiming to unlock additional capacity and ensure the resilience of its global production network.