By on August 3, 2012

Toyota today published its revised production and sales plan for the calendar year 2012. The plan calls for slightly more than 10 million units produced globally by all Toyota Motor Corporation companies. If this plan is executed, Toyota will be the world’s first automaker to break the 10 million unit sound barrier. Based on its half year results, Toyota was already above plan before the plan was published. 

TMC Revised Production Plan
Toyota Daihatsu Hino Total
Japanese production 3,510,000 780,000 150,000 4,440,000
Overseas production 5,360,000 220,000 20,000 5,600,000
Worldwide production 8,870,000 1,000,000 180,000 10,050,000

Compared to the previous production plan published by TTAC in February, Toyota plans to make 290,000 more Toyota and Lexus units, 150,000 additional Daihatsu cars and 30,000 additional Hino trucks.

TMC Revised Sales Plan
Toyota Daihatsu Hino Total
Japanese sales 1,670,000 660,000 40,000 2,370,000
Overseas sales 7,080,000 200,000 110,000 7,390,000
Worldwide sales 8,750,000 850,000 160,000 9,760,000

Toyota’s sales plan has been up-revised accordingly. It calls for 9.76 million units sold in CY 2012 across all TMC companies. Due to pipeline filling,  a slight lag between sales and production is common, especially in times of high growth. In the industry, the size of an automaker is measured by production.

This ends months of speculation and downright erroneous reporting, from the Wall Street Journal to Bloomberg.

Since May, TTAC has predicted that, based on previous plans and current quarterly production data, Toyota could end the year with more than 10 million units made. Even if it caused incredulous comments (especially in the if-we-don’t-like-it-it-can’t-be-true section,) we maintained this position throughout the year. Two days ago, we reiterated this prediction.

Seven months into the year, the race for the title World’s largest automaker appears to be decided.  Based on half year results and forecasts, Toyota will win, followed by GM and Volkswagen. Like all carmakers (with the exception of Volkswagen,) Toyota officially maintains that numbers are not important. Said Senior Managing Officer Takahiro Ijichi today in Tokyo:

“We have not been aspiring to produce 10 million units a year.  We have been aspiring to do a good job of producing good vehicles. We appreciate the people who choose our vehicles, and we will continue to work to make our vehicles better and for our vehicles to meet the needs of consumers.”



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11 Comments on “Toyota Plans To Make More Than 10 Milllion Cars This Year...”

  • avatar
    Polar Bear

    Toyota has built its name on reliability. Not on design, low price, driving dynamics, fun or prestige or anything else. Only on reliable cars. This is why I wonder why Toyota has let quality slip the last few years. The tipping point seems to be around 2007. After that, Toyotas are still good, but not as superior as they used to be. Don’t they see the danger in this? Why should I trade in my boring Camry for a new one if other cars are more fun and just as reliable?

  • avatar
    Cammy Corrigan

    If Toyota can sell those cars profitably, then Toyota should have a bumper year. In fact, if they can sell each one of those cars on an average of $1000 profit margin, then they should make $10bn, theoretically (crude accounting, I know). Which is even better.

    However, I share reservations that will Toyota let quality and reliability slip in favour big volumes? I sincerely hope not and hopefully, the witch-hunt will keep them in check of that facet of their cars.

    Volume is OK, but profit is better. Volume AND profit? Unstoppable. Same with Volkswagen AG, I don’t care for their cars, but one can’t deny that they’re selling in world class levels with, equally, world class profits. Now, have they engineered out the reliability in order to make those volumes and profits? Only time will tell, but Toyota DOES have a track record of reliability and engineering (despite what the NHTSA might think). So, maybe that risk is low. Whether people choose to ignore it or not, Toyota are always near the top of every reliability survey I’ve ever seen in the world. United Kingdom, United States, Germany, Canada, etc. Statistically, they’re either very lucky to achieve those positions or they’re doing something right.

    I have reservations over GM, too. They’re certainly streets ahead of what they used to be, they’re products are competitive but, to me, they’re lacking a certain something which prevents them from being, sustainably world class which I can’t put my finger on. But by all means, people, prove me wrong. I want you to…

    • 0 avatar

      the way i look at it is that you dont have to be best in every category to sell well

      i’ll describe some manufacturers and where they fall down…

      Where i am, VW is pretty much a luxury brand. If you drive a VW Golf or Passat you are an urbane hipster with impeccable taste. You probably have lots of Apple products. Downside is reliability or perceived reliabilty and maintenance costs. That’s the only downside. Oh and a fairly high price of entry. But that desirability makes them sell hand over fist. I dont like FWD so I care not.

      Toyota is stodgy. But they are the blue ribbon for reliability and low maintenance. They are trying to turn that with the 86. I like the 86. Everything else they do does not interest me. However they have all the other bases covered so they sell well.

      Hyundai/Kia are in a fairly similar boat to Toyota in that they have a new reputation for good enough design, low maintenance, fair pricing and good dealer experiences both pre and post sales.

      If other companies want to sell more they need to see where other companies are doing well and emulate where possible.

      GM has the ability to do well. You cannot argue that cars like the Cruze hasn’t surprised with the sales and general design. They need to look at the Cruze and ask why people buy and how they can translate that success to their less successful brothers above and below the Cruze.

  • avatar

    When units sold becomes a priority, your quality slips. BTW – Didn’t Toyota just announce another major recall ?

  • avatar
    Polar Bear

    I looked up two Toyota products in Consumer Report Used Cars.The Camry because I own a 2004, and the Lexus LS because I need something to daydream about.

    The 5th generation Camry gets full score (red dot) for reliability all years up to 2006. This means much better than average. But the 6th generation Camry only gets second best score (half red dot) from 2007 onwards. This still means better than average, but no longer the best. (The 7th generation is too new to be included.)

    The Lexus is also top rated as the old model LS 430, but from the introduction of LS 460 in 2007 it slips. Some years get second best score, (half red dot), some get only “average” (white dot).  What is going on here? The LS is not supposed to be average. The LS is supposed to be the best, most reliable car in the world.

    For 2011, the LS shares the “average” score with the supposed king of unreliability and expensive repairs, the BMW 7-series. Who would have expected that?

  • avatar

    I think the other guys reliability is getting better – not so much that Toyota is slipping.. Though of course it could be a bit of both.

    FWIW I think Kia and Hyundai are actually a bit more exciting then Toyota. They are like Toyota of 15 years ago..the Subaru sports car notwithstanding..

  • avatar

    Bertel wrote when he last updated the 2012 figures that for GM (yesterday) : “Some may make snarky comments that between production and sales some 146,000 cars are sitting around unsold, but let’s not get hung up on details.”
    The gap for Toyota is 290,000. No snarky comments please.

    • 0 avatar

      Snark, snark, No. 1 in recall 2012, snark…

    • 0 avatar

      You are comparing actuals for GM with budgets for Toyota – big difference. Don’t fall into that trap. I do not have half year actual msales for Toyota, actual production Jan-June is available.

      Forward-looking, Toyota always lowballs sales in an underpromise, overdeliver attempt. You can be assured that a company that hates muda (waste,) Tomoco does not plan to end up the year with 290,000 unsold Camrys.

      In a high growth situation, pipeline filling is expected, hence the “no snarky comments” comment yesterday.

  • avatar

    Is it just me, or it is very strange when Yamaha sponsors Mr. Toyoda?

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